Companhia Brasileira de Aluminio (BSP:CBAV3) 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
Companhia Brasileira de Aluminio had a gross margin of 18.01% for the quarter that ended in Mar. 2026 => 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.
Companhia Brasileira de Aluminio Gross Margin % Related Terms
Companhia Brasileira de Aluminio 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.
Companhia Brasileira de Aluminio Gross Margin % Chart
BSP:CBAV3 vs AA, CENX, CSTM: Gross Margin % Comparison
For the Aluminum subindustry, Companhia Brasileira de Aluminio'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.
Companhia Brasileira de Aluminio Gross Margin % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Companhia Brasileira de Aluminio's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Companhia Brasileira de Aluminio'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.
Companhia Brasileira de Aluminio (BSP:CBAV3) has a Gross Margin % of 18.01% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Companhia Brasileira de Aluminio and its competitors. This is 44% above median its historical median of 12.49. Over the past decade, Companhia Brasileira de Aluminio's Gross Margin % has ranged from 1.03 to 19.28. According to the industry distribution chart, Companhia Brasileira de Aluminio ranks #567 out of 731 companies in the Metals & Mining industry, placing it in the top 77.6%.
Is Companhia Brasileira de Aluminio's Gross Margin % too high?
Companhia Brasileira de Aluminio's current Gross Margin % of 18.01% is 44% above median its 10-year median of 12.49. Over the past 10 years, this metric has ranged from a low of 1.03 to a high of 19.28. The Metals & Mining industry median Gross Margin % is 26.20. Companhia Brasileira de Aluminio's value of 18.01% is 31.3% below this industry median. Based on the distribution chart, Companhia Brasileira de Aluminio ranks #567 out of 731 companies in the Metals & Mining industry, which is in the bottom quartile relative to peers. Overall, Companhia Brasileira de Aluminio has a GF Score™ of 55/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Companhia Brasileira de Aluminio's Gross Margin % compare to AA and CENX?
According to the Metals & Mining industry distribution chart, Companhia Brasileira de Aluminio ranks #567 out of 731 companies for Gross Margin %. This places Companhia Brasileira de Aluminio in the lower half of its industry. The industry median Gross Margin % is 26.20. Companhia Brasileira de Aluminio's value of 18.01% is 31.3% below this benchmark. Historically, Companhia Brasileira de Aluminio's own Gross Margin % has ranged from 1.03 to 19.28 over the past decade. While the company's 10-year median is 12.49 vs. the industry median of 26.20, Companhia Brasileira de Aluminio 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 26.20, based on 731 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. Companhia Brasileira de Aluminio's current Gross Margin % of 18.01% is 31.3% 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 Companhia Brasileira de Aluminio and its competitors. For the Metals & Mining industry, the median Gross Margin % is 26.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Companhia Brasileira de Aluminio's current Gross Margin % is 18.01%, which is 44% above median its own 10-year median of 12.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Companhia Brasileira de Aluminio stock overvalued right now?
Based on GuruFocus' analysis, Companhia Brasileira de Aluminio (BSP:CBAV3) is currently considered Significantly Overvalued. The stock's GF Value™ is R$5.43, compared to a current price of R$10.81 — trading 99.1% above its estimated fair value. The current Gross Margin % is 18.01%, which is 44% above median its 10-year median of 12.49 and 31.3% below the Metals & Mining industry median of 26.20. Companhia Brasileira de Aluminio's overall GF Score™ is 55/100 with 11 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 Companhia Brasileira de Aluminio (BSP:CBAV3), the current Gross Margin % is 18.01% 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 Companhia Brasileira de Aluminio (BSP:CBAV3) Overvalued in 2026?
Based on GuruFocus' analysis, Companhia Brasileira de Aluminio stock appears to be overvalued.
The current stock price of R$10.81 is trading 99.1% above its estimated GF Value™ of R$5.43.
GuruFocus considers Companhia Brasileira de Aluminio to be Significantly Overvalued.
Key valuation signals for BSP:CBAV3:
Gross Margin %: 18.01% (44% above median its 10-year median of 12.49)
GF Value™: R$5.43 vs. price of R$10.81 (99.1% above fair value)
Industry Position: 31.3% below the Metals & Mining median (#567 of 731)
No single metric tells the full story. See the BSP:CBAV3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Companhia Brasileira de Aluminio Business Description
Companhia Brasileira de Aluminio SA is engaged in the exploration of bauxite mining in Brazil, producing and/or trading bauxite, alumina, primary aluminum, and semi-fabricated products in Brazil and abroad. The Company has a wide product range, such as ingots, billets, plates, coils, foil, and extruded products. The company has three operating segments; the Aluminum segment comprises the operations of the aluminum production chain, from bauxite mining to the production of primary and downstream products, the Energy segment; Comprises the sale of surplus energy to the market, and others segment.
55GF Score
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