Motorcycle HoldingsASX:MTO -0.81%85 Gross Margin % is 24.01% as of Dec. 2025, which is 3% below its 10-year median of 24.79. GuruFocus rates ASX:MTO with a GF Score™ of 85/100 and a GF Value™ of A$2.64 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,313 Vehicles & Parts companies, Motorcycle Holdings ranks better than 60.93% on this metric.
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
Motorcycle Holdings had a gross margin of 24.01% for the quarter that ended in Dec. 2025 => Competition eroding margins
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.
Motorcycle Holdings Gross Margin % Related Terms
Motorcycle Holdings Gross Margin % Historical Data
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The historical data trend for Motorcycle Holdings'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.
ASX:MTO vs CVNA, PAG, ALTB: Gross Margin % Comparison
For the Auto & Truck Dealerships subindustry, Motorcycle Holdings'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.
Motorcycle Holdings Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Motorcycle Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Motorcycle Holdings'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.
Motorcycle Holdings (ASX:MTO) has a Gross Margin % of 24.01% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Motorcycle Holdings and its competitors. This is near median its historical median of 24.79. Over the past decade, Motorcycle Holdings' Gross Margin % has ranged from 19.84 to 26.53. According to the industry distribution chart, Motorcycle Holdings ranks #513 out of 1313 companies in the Vehicles & Parts industry, placing it in the top 39.1%.
Is Motorcycle Holdings' Gross Margin % too high?
Motorcycle Holdings' current Gross Margin % of 24.01% is near median its 10-year median of 24.79. Over the past 10 years, this metric has ranged from a low of 19.84 to a high of 26.53. The Vehicles & Parts industry median Gross Margin % is 19.84. Motorcycle Holdings' value of 24.01% is 21% above this industry median. Based on the distribution chart, Motorcycle Holdings ranks #513 out of 1313 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Motorcycle Holdings has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Motorcycle Holdings' Gross Margin % compare to CVNA and PAG?
According to the Vehicles & Parts industry distribution chart, Motorcycle Holdings ranks #513 out of 1313 companies for Gross Margin %. This puts Motorcycle Holdings in the upper half of its industry. The industry median Gross Margin % is 19.84. Motorcycle Holdings' value of 24.01% is 21% above this benchmark. Historically, Motorcycle Holdings' own Gross Margin % has ranged from 19.84 to 26.53 over the past decade. While the company's 10-year median is 24.79 vs. the industry median of 19.84, Motorcycle Holdings has consistently been above 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 Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.84, based on 1,313 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. Motorcycle Holdings's current Gross Margin % of 24.01% is 21% above 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 Motorcycle Holdings and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Motorcycle Holdings's current Gross Margin % is 24.01%, which is near median its own 10-year median of 24.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Motorcycle Holdings stock overvalued right now?
Based on GuruFocus' analysis, Motorcycle Holdings (ASX:MTO) is currently considered Fairly Valued. The stock's GF Value™ is A$2.64, compared to a current price of A$2.45 — trading 7.2% below its estimated fair value. The current Gross Margin % is 24.01%, which is near median its 10-year median of 24.79 and 21% above the Vehicles & Parts industry median of 19.84. Motorcycle Holdings' overall GF Score™ is 85/100 with 5 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 Motorcycle Holdings (ASX:MTO), the current Gross Margin % is 24.01% 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 Motorcycle Holdings (ASX:MTO) Overvalued in 2026?
Based on GuruFocus' analysis, Motorcycle Holdings stock appears to be undervalued.
The current stock price of A$2.45 is trading 7.2% below its estimated GF Value™ of A$2.64.
GuruFocus considers Motorcycle Holdings to be Fairly Valued.
Key valuation signals for ASX:MTO:
Gross Margin %: 24.01% (near median its 10-year median of 24.79)
GF Value™: A$2.64 vs. price of A$2.45 (7.2% below fair value)
Industry Position: 21% above the Vehicles & Parts median (#513 of 1313)
No single metric tells the full story. See the ASX:MTO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Motorcycle Holdings Ltd is a motorcycle dealer in Australia. It has two reporting segments. First, Motorcycle Retailing, which offers a range of motorcycle products and services to the general public in Australia, including the sale of new and used motorcycles, parts, servicing, accessories, and MPPs. The segment also facilitates insurance and financing for motorcycle purchases through third-party sources. Second, the Motorcycle and Accessories Wholesaling segment, which imports and distributes a range of motorcycles, ATVs, scooters, and motorcycle parts and accessories to wholesale customers in Australia and New Zealand, including the Group's own retail outlets.
85GF Score
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