Air WaterAWTRF 86 Gross Margin % is 22.77% as of Sep. 2025, which is 4% above its 10-year median of 21.87. GuruFocus rates AWTRF with a GF Score™ of 86/100 and a GF Value™ of $11.73 (Modestly Overvalued). The stock has 14 warning signs investors should review. Among 1,561 Chemicals companies, Air Water ranks worse than 54.32% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Air Water's Gross Profit for the
three
months ended in Sep. 2025 was $402 Mil. Air Water's Revenue for the
three
months ended in Sep. 2025 was $1,765 Mil. Therefore, Air Water's Gross Margin % for the quarter that ended in Sep. 2025 was 22.77%.
Warning Sign:
Air Water Inc gross margin has been in long-term decline. The average rate of decline per year is -1.2%.
The historical rank and industry rank for Air Water's Gross Margin % or its related term are showing as below:
AWTRF'
s Gross Margin % Range Over the Past 10 Years
Min: 19.91 Med: 21.87 Max: 22.43
Current: 21.9
During the past 13 years, the highestGross Margin % of Air Water was 22.43%. The lowest was 19.91%. And the median was 21.87%.
AWTRF's Gross Margin % is ranked worse than 54.32% of 1561
companies
in the Chemicals industry
Industry Median: 23.35
vs AWTRF: 21.90
Air Water had a gross margin of 22.77% for the quarter that ended in Sep. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Air Water was -1.20% per year.
Air Water (OTCPK:AWTRF) 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
Air Water had a gross margin of 22.77% for the quarter that ended in Sep. 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.
Air Water Gross Margin % Related Terms
Air Water Gross Margin % Historical Data
* Premium members only.
The historical data trend for Air Water'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 Specialty Chemicals subindustry, Air Water'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.
Air Water Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Air Water's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Air Water'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.
Air Water (AWTRF) has a Gross Margin % of 22.77% as of Sep. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Air Water and its competitors. This is near median its historical median of 21.87. Over the past decade, Air Water's Gross Margin % has ranged from 19.91 to 22.43. According to the industry distribution chart, Air Water ranks #848 out of 1561 companies in the Chemicals industry, placing it in the top 54.3%.
Is Air Water's Gross Margin % too high?
Air Water's current Gross Margin % of 22.77% is near median its 10-year median of 21.87. Over the past 10 years, this metric has ranged from a low of 19.91 to a high of 22.43. The Chemicals industry median Gross Margin % is 23.35. Air Water's value of 22.77% is 2.5% below this industry median. Based on the distribution chart, Air Water ranks #848 out of 1561 companies in the Chemicals industry, which is below the industry midpoint. Overall, Air Water has a GF Score™ of 86/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Air Water's Gross Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Air Water ranks #848 out of 1561 companies for Gross Margin %. This places Air Water in the lower half of its industry. The industry median Gross Margin % is 23.35. Air Water's value of 22.77% is 2.5% below this benchmark. Historically, Air Water's own Gross Margin % has ranged from 19.91 to 22.43 over the past decade. While the company's 10-year median is 21.87 vs. the industry median of 23.35, Air Water 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 Chemicals company?
The median Gross Margin % among Chemicals companies is 23.35, based on 1,561 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. Air Water's current Gross Margin % of 22.77% is 2.5% 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 Air Water and its competitors. For the Chemicals industry, the median Gross Margin % is 23.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Air Water's current Gross Margin % is 22.77%, which is near median its own 10-year median of 21.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Air Water stock overvalued right now?
Based on GuruFocus' analysis, Air Water (AWTRF) is currently considered Modestly Overvalued. The stock's GF Value™ is $11.73, compared to a current price of $14.75 — trading 25.7% above its estimated fair value. The current Gross Margin % is 22.77%, which is near median its 10-year median of 21.87 and 2.5% below the Chemicals industry median of 23.35. Air Water's overall GF Score™ is 86/100 with 14 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 Air Water (AWTRF), the current Gross Margin % is 22.77% as of Sep. 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 Air Water (AWTRF) Overvalued in 2026?
Based on GuruFocus' analysis, Air Water stock appears to be overvalued.
The current stock price of $14.75 is trading 25.7% above its estimated GF Value™ of $11.73.
GuruFocus considers Air Water to be Modestly Overvalued.
Key valuation signals for AWTRF:
Gross Margin %: 22.77% (near median its 10-year median of 21.87)
GF Value™: $11.73 vs. price of $14.75 (25.7% above fair value)
Industry Position: 2.5% below the Chemicals median (#848 of 1561)
No single metric tells the full story. See the AWTRF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Air Water Inc is a diversified conglomerate engaged in the supply of industrial gases and various other businesses and services. The company operates through five segments. The Agri & Foods segment covers the processing and distribution of fruits and vegetables, frozen foods, meat products, and contract manufacturing of beverages. The Digital & Industry segment focuses on industrial gases, electrical, and functional materials. The Energy Solutions segment deals with LP gas, kerosene, and related equipment. The Health & Safety segment provides medical gases, dental and protective materials, hospital equipment, and home medical care services. The Other Businesses segment includes logistics, salt production, overseas industrial gas operations, biomass power, and high-output UPS solutions.
86GF Score
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