Ambipar Participacoes e Empreendimentos (BSP:AMBP3) 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
Ambipar Participacoes e Empreendimentos had a gross margin of 17.24% for the quarter that ended in Jun. 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.
Ambipar Participacoes e Empreendimentos Gross Margin % Related Terms
Ambipar Participacoes e Empreendimentos 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.
Ambipar Participacoes e Empreendimentos Gross Margin % Chart
Ambipar Participacoes e Empreendimentos Annual Data
BSP:AMBP3 vs WM, RSG, WCN: Gross Margin % Comparison
For the Waste Management subindustry, Ambipar Participacoes e Empreendimentos'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.
Ambipar Participacoes e Empreendimentos Gross Margin % vs Waste Management Industry
* 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.
Ambipar Participacoes e Empreendimentos (BSP:AMBP3) has a Gross Margin % of 17.24% as of Jun. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Ambipar Participacoes e Empreendimentos and its competitors. This is 22% below median its historical median of 22.01. Over the past decade, Ambipar Participacoes e Empreendimentos' Gross Margin % has ranged from 9.38 to 23.76. According to the industry distribution chart, Ambipar Participacoes e Empreendimentos ranks #171 out of 235 companies in the Waste Management industry, placing it in the top 72.8%.
Is Ambipar Participacoes e Empreendimentos' Gross Margin % too high?
Ambipar Participacoes e Empreendimentos' current Gross Margin % of 17.24% is 22% below median its 10-year median of 22.01. Over the past 10 years, this metric has ranged from a low of 9.38 to a high of 23.76. The Waste Management industry median Gross Margin % is 27.20. Ambipar Participacoes e Empreendimentos' value of 17.24% is 36.6% below this industry median. Based on the distribution chart, Ambipar Participacoes e Empreendimentos ranks #171 out of 235 companies in the Waste Management industry, which is below the industry midpoint. Overall, Ambipar Participacoes e Empreendimentos has a GF Score™ of 74/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Ambipar Participacoes e Empreendimentos' Gross Margin % compare to WM and RSG?
According to the Waste Management industry distribution chart, Ambipar Participacoes e Empreendimentos ranks #171 out of 235 companies for Gross Margin %. This places Ambipar Participacoes e Empreendimentos in the lower half of its industry. The industry median Gross Margin % is 27.20. Ambipar Participacoes e Empreendimentos' value of 17.24% is 36.6% below this benchmark. Historically, Ambipar Participacoes e Empreendimentos' own Gross Margin % has ranged from 9.38 to 23.76 over the past decade. While the company's 10-year median is 22.01 vs. the industry median of 27.20, Ambipar Participacoes e Empreendimentos 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 Waste Management company?
The median Gross Margin % among Waste Management companies is 27.20, based on 235 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. Ambipar Participacoes e Empreendimentos's current Gross Margin % of 17.24% is 36.6% 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 Ambipar Participacoes e Empreendimentos and its competitors. For the Waste Management industry, the median Gross Margin % is 27.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ambipar Participacoes e Empreendimentos's current Gross Margin % is 17.24%, which is 22% below median its own 10-year median of 22.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ambipar Participacoes e Empreendimentos stock overvalued right now?
Based on GuruFocus' analysis, Ambipar Participacoes e Empreendimentos (BSP:AMBP3) is currently considered Possible Value Trap. The stock's GF Value™ is R$17.59, compared to a current price of R$0.18 — trading 99% below its estimated fair value. The current Gross Margin % is 17.24%, which is 22% below median its 10-year median of 22.01 and 36.6% below the Waste Management industry median of 27.20. Ambipar Participacoes e Empreendimentos' overall GF Score™ is 74/100 with 7 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 Ambipar Participacoes e Empreendimentos (BSP:AMBP3), the current Gross Margin % is 17.24% as of Jun. 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 Ambipar Participacoes e Empreendimentos (BSP:AMBP3) Overvalued in 2026?
Based on GuruFocus' analysis, Ambipar Participacoes e Empreendimentos stock appears to be undervalued.
The current stock price of R$0.18 is trading 99% below its estimated GF Value™ of R$17.59.
GuruFocus considers Ambipar Participacoes e Empreendimentos to be Possible Value Trap.
Key valuation signals for BSP:AMBP3:
Gross Margin %: 17.24% (22% below median its 10-year median of 22.01)
GF Value™: R$17.59 vs. price of R$0.18 (99% below fair value)
Industry Position: 36.6% below the Waste Management median (#171 of 235)
No single metric tells the full story. See the BSP:AMBP3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ambipar Participacoes e Empreendimentos Business Description
Ambipar Participacoes e Empreendimentos SA is engaged in providing environmental services to several private clients in Latin America. Through its Environment segment, the company provides complete solutions in waste management and recovery, with the support of a center for research, development, and innovation. Its response segment provides prevention, training, and emergency assistance to accidents with chemicals and pollutants and firefighting.
74GF Score
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