Australian Strategic Materials (ASX:ASM) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Australian Strategic Materials had a gross margin of 19.78% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Australian Strategic Materials Gross Margin % Related Terms
Australian Strategic Materials Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Australian Strategic Materials Gross Margin % Chart
Australian Strategic Materials Gross Margin % Competitor Comparison
For the Other Industrial Metals & Mining subindustry, Australian Strategic Materials's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Australian Strategic Materials Gross Margin % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Australian Strategic Materials's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Australian Strategic Materials's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Australian Strategic Materials (ASX:ASM) has a Gross Margin % of 19.78% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Australian Strategic Materials and its competitors. According to the industry distribution chart, Australian Strategic Materials ranks #698 out of 730 companies in the Metals & Mining industry, placing it in the top 95.6%.
Is Australian Strategic Materials' Gross Margin % too high?
Australian Strategic Materials' current Gross Margin % is 19.78%. The Metals & Mining industry median Gross Margin % is 26.18. Australian Strategic Materials' value of 19.78% is 24.4% below this industry median. Based on the distribution chart, Australian Strategic Materials ranks #698 out of 730 companies in the Metals & Mining industry, which is in the bottom quartile relative to peers. Overall, Australian Strategic Materials has a GF Score™ of 56/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Australian Strategic Materials' Gross Margin % compare to competitors?
According to the Metals & Mining industry distribution chart, Australian Strategic Materials ranks #698 out of 730 companies for Gross Margin %. This places Australian Strategic Materials in the lower half of its industry. The industry median Gross Margin % is 26.18. Australian Strategic Materials' value of 19.78% is 24.4% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Metals & Mining company?
The median Gross Margin % among Metals & Mining companies is 26.18, based on 730 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Australian Strategic Materials's current Gross Margin % of 19.78% is 24.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Australian Strategic Materials and its competitors. For the Metals & Mining industry, the median Gross Margin % is 26.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Australian Strategic Materials's current Gross Margin % is 19.78%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Australian Strategic Materials stock overvalued right now?
Based on GuruFocus' analysis, Australian Strategic Materials (ASX:ASM) is currently considered Modestly Undervalued. The stock's GF Value™ is A$1.55, compared to a current price of A$1.21 — trading 21.9% below its estimated fair value. The current Gross Margin % is 19.78% and 24.4% below the Metals & Mining industry median of 26.18. Australian Strategic Materials' overall GF Score™ is 56/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Australian Strategic Materials (ASX:ASM), the current Gross Margin % is 19.78% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Australian Strategic Materials (ASX:ASM) Overvalued in 2026?
Based on GuruFocus' analysis, Australian Strategic Materials stock appears to be undervalued.
The current stock price of A$1.21 is trading 21.9% below its estimated GF Value™ of A$1.55.
GuruFocus considers Australian Strategic Materials to be Modestly Undervalued.
Key valuation signals for ASX:ASM:
Gross Margin %: 19.78%
GF Value™: A$1.55 vs. price of A$1.21 (21.9% below fair value)
Industry Position: 24.4% below the Metals & Mining median (#698 of 730)
No single metric tells the full story. See the ASX:ASM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Australian Strategic Materials Business Description
Australian Strategic Materials Ltd is engaged in the business of producing and mining specialty metal and oxides. The product portfolio includes neodymium, praseodymium, zirconium, hafnium, dysprosium, terbium and niobium oxides. Its Dubbo Project includes Central Western New South Wales, Australia. The company's segment includes Corporate, Dubbo, and Korea. The company generates majority of its revenue from Korea, which includes the Korean Metals Plant.
56GF Score
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