MagontecASX:MGL 42 Gross Margin % is 19.38% as of Dec. 2025, which is 31% above its 10-year median of 14.77. GuruFocus rates ASX:MGL with a GF Score™ of 42/100 and a GF Value™ of A$0.27 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 730 Metals & Mining companies, Magontec ranks worse than 60.14% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Magontec's Gross Profit for the
six
months ended in Dec. 2025 was A$6.71 Mil. Magontec's Revenue for the
six
months ended in Dec. 2025 was A$34.65 Mil. Therefore, Magontec's Gross Margin % for the quarter that ended in Dec. 2025 was 19.38%.
The historical rank and industry rank for Magontec's Gross Margin % or its related term are showing as below:
ASX:MGL'
s Gross Margin % Range Over the Past 10 Years
Min: 9.63 Med: 14.77 Max: 24.33
Current: 18.66
During the past 13 years, the highestGross Margin % of Magontec was 24.33%. The lowest was 9.63%. And the median was 14.77%.
ASX:MGL's Gross Margin % is ranked worse than 60.14% of 730
companies
in the Metals & Mining industry
Industry Median: 26.175
vs ASX:MGL: 18.66
Magontec had a gross margin of 19.38% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Magontec was 5.40% per year.
Magontec (ASX:MGL) 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
Magontec had a gross margin of 19.38% 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.
Magontec Gross Margin % Related Terms
Magontec Gross Margin % Historical Data
* Premium members only.
The historical data trend for Magontec's Gross Margin % can be seen below:
* 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.
For the Other Industrial Metals & Mining subindustry, Magontec'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.
Magontec Gross Margin % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Magontec's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Magontec'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.
Magontec (ASX:MGL) has a Gross Margin % of 19.38% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Magontec and its competitors. This is 31% above median its historical median of 14.77. Over the past decade, Magontec's Gross Margin % has ranged from 9.63 to 24.33. According to the industry distribution chart, Magontec ranks #439 out of 730 companies in the Metals & Mining industry, placing it in the top 60.1%.
Is Magontec's Gross Margin % too high?
Magontec's current Gross Margin % of 19.38% is 31% above median its 10-year median of 14.77. Over the past 10 years, this metric has ranged from a low of 9.63 to a high of 24.33. The Metals & Mining industry median Gross Margin % is 26.18. Magontec's value of 19.38% is 26% below this industry median. Based on the distribution chart, Magontec ranks #439 out of 730 companies in the Metals & Mining industry, which is below the industry midpoint. Overall, Magontec has a GF Score™ of 42/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Magontec's Gross Margin % compare to competitors?
According to the Metals & Mining industry distribution chart, Magontec ranks #439 out of 730 companies for Gross Margin %. This places Magontec in the lower half of its industry. The industry median Gross Margin % is 26.18. Magontec's value of 19.38% is 26% below this benchmark. Historically, Magontec's own Gross Margin % has ranged from 9.63 to 24.33 over the past decade. While the company's 10-year median is 14.77 vs. the industry median of 26.18, Magontec has consistently been below the industry average. 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. Magontec's current Gross Margin % of 19.38% is 26% 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 Magontec 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. Magontec's current Gross Margin % is 19.38%, which is 31% above median its own 10-year median of 14.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Magontec stock overvalued right now?
Based on GuruFocus' analysis, Magontec (ASX:MGL) is currently considered Possible Value Trap. The stock's GF Value™ is A$0.27, compared to a current price of A$0.19 — trading 29.6% below its estimated fair value. The current Gross Margin % is 19.38%, which is 31% above median its 10-year median of 14.77 and 26% below the Metals & Mining industry median of 26.18. Magontec's overall GF Score™ is 42/100 with 3 warning signs 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 Magontec (ASX:MGL), the current Gross Margin % is 19.38% 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 Magontec (ASX:MGL) Overvalued in 2026?
Based on GuruFocus' analysis, Magontec stock appears to be undervalued.
The current stock price of A$0.19 is trading 29.6% below its estimated GF Value™ of A$0.27.
GuruFocus considers Magontec to be Possible Value Trap.
Key valuation signals for ASX:MGL:
Gross Margin %: 19.38% (31% above median its 10-year median of 14.77)
GF Value™: A$0.27 vs. price of A$0.19 (29.6% below fair value)
Industry Position: 26% below the Metals & Mining median (#439 of 730)
No single metric tells the full story. See the ASX:MGL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Magontec Ltd is engaged in the manufacturing and sale of generic and specialist magnesium alloys as well as magnesium and titanium cathodic corrosion protection products. It also researches and develops new proprietary magnesium alloys and technologies. The group's products and services are Primary Mg Alloy, Magnesium Alloy Recycling, and Cathodic Corrosion Protection. It has three segments: Admin, EUR, and PRC. The majority of the group's revenue is generated from the EUR segment, which represents its operations in Europe.
42GF Score
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