Armac Locacao Logistica e Servicos (BSP:ARML3) 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
Armac Locacao Logistica e Servicos had a gross margin of 26.94% for the quarter that ended in Mar. 2026 => 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.
Armac Locacao Logistica e Servicos Gross Margin % Related Terms
Armac Locacao Logistica e Servicos 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.
Armac Locacao Logistica e Servicos Gross Margin % Chart
BSP:ARML3 vs URI, SUNB, AER: Gross Margin % Comparison
For the Rental & Leasing Services subindustry, Armac Locacao Logistica e Servicos'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.
Armac Locacao Logistica e Servicos Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Armac Locacao Logistica e Servicos's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Armac Locacao Logistica e Servicos'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.
Armac Locacao Logistica e Servicos (BSP:ARML3) has a Gross Margin % of 26.94% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Armac Locacao Logistica e Servicos and its competitors. This is 39% below median its historical median of 44.49. Over the past decade, Armac Locacao Logistica e Servicos' Gross Margin % has ranged from 32.22 to 48.20. According to the industry distribution chart, Armac Locacao Logistica e Servicos ranks #538 out of 1007 companies in the Business Services industry, placing it in the top 53.4%.
Is Armac Locacao Logistica e Servicos' Gross Margin % too high?
Armac Locacao Logistica e Servicos' current Gross Margin % of 26.94% is 39% below median its 10-year median of 44.49. Over the past 10 years, this metric has ranged from a low of 32.22 to a high of 48.20. The Business Services industry median Gross Margin % is 34.46. Armac Locacao Logistica e Servicos' value of 26.94% is 21.8% below this industry median. Based on the distribution chart, Armac Locacao Logistica e Servicos ranks #538 out of 1007 companies in the Business Services industry, which is below the industry midpoint. Overall, Armac Locacao Logistica e Servicos has a GF Score™ of 81/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Armac Locacao Logistica e Servicos' Gross Margin % compare to URI and SUNB?
According to the Business Services industry distribution chart, Armac Locacao Logistica e Servicos ranks #538 out of 1007 companies for Gross Margin %. This places Armac Locacao Logistica e Servicos in the lower half of its industry. The industry median Gross Margin % is 34.46. Armac Locacao Logistica e Servicos' value of 26.94% is 21.8% below this benchmark. Historically, Armac Locacao Logistica e Servicos' own Gross Margin % has ranged from 32.22 to 48.20 over the past decade. While the company's 10-year median is 44.49 vs. the industry median of 34.46, Armac Locacao Logistica e Servicos 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 Business Services company?
The median Gross Margin % among Business Services companies is 34.46, based on 1,007 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. Armac Locacao Logistica e Servicos's current Gross Margin % of 26.94% is 21.8% 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 Armac Locacao Logistica e Servicos and its competitors. For the Business Services industry, the median Gross Margin % is 34.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Armac Locacao Logistica e Servicos's current Gross Margin % is 26.94%, which is 39% below median its own 10-year median of 44.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Armac Locacao Logistica e Servicos stock overvalued right now?
Based on GuruFocus' analysis, Armac Locacao Logistica e Servicos (BSP:ARML3) is currently considered Possible Value Trap. The stock's GF Value™ is R$9.18, compared to a current price of R$3.13 — trading 65.9% below its estimated fair value. The current Gross Margin % is 26.94%, which is 39% below median its 10-year median of 44.49 and 21.8% below the Business Services industry median of 34.46. Armac Locacao Logistica e Servicos' overall GF Score™ is 81/100 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 Armac Locacao Logistica e Servicos (BSP:ARML3), the current Gross Margin % is 26.94% as of Mar. 2026. 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 Armac Locacao Logistica e Servicos (BSP:ARML3) Overvalued in 2026?
Based on GuruFocus' analysis, Armac Locacao Logistica e Servicos stock appears to be undervalued.
The current stock price of R$3.13 is trading 65.9% below its estimated GF Value™ of R$9.18.
GuruFocus considers Armac Locacao Logistica e Servicos to be Possible Value Trap.
Key valuation signals for BSP:ARML3:
Gross Margin %: 26.94% (39% below median its 10-year median of 44.49)
GF Value™: R$9.18 vs. price of R$3.13 (65.9% below fair value)
Industry Position: 21.8% below the Business Services median (#538 of 1007)
No single metric tells the full story. See the BSP:ARML3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Armac Locacao Logistica e Servicos Business Description
Armac Locacao Logistica e Servicos SA is engaged in offering machinery and equipment on a rental basis. Some of its equipment includes pavers, telescopic handlers, Compaction rollers, Motor graders, crawler tractors, excavators, and Loaders among others.
81GF Score
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