Contax ParticipacoesBSP:CTAX3 -2.13%42 Gross Margin % is 19.64% as of Mar. 2026, which is 17755% above its 10-year median of 0.11. GuruFocus rates BSP:CTAX3 with a GF Score™ of 42/100 and a GF Value™ of R$1.48 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 1,007 Business Services companies, Contax Participacoes ranks worse than 70.41% 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
Contax Participacoes had a gross margin of 19.64% 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.
Contax Participacoes Gross Margin % Related Terms
Contax Participacoes Gross Margin % Historical Data
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The historical data trend for Contax Participacoes'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.
BSP:CTAX3 vs CTAS, CPRT, GPN: Gross Margin % Comparison
For the Specialty Business Services subindustry, Contax Participacoes'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.
Contax Participacoes Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Contax Participacoes's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Contax Participacoes'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.
Contax Participacoes (BSP:CTAX3) has a Gross Margin % of 19.64% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Contax Participacoes and its competitors. This is 17755% above median its historical median of 0.11. According to the industry distribution chart, Contax Participacoes ranks #709 out of 1007 companies in the Business Services industry, placing it in the top 70.4%.
Is Contax Participacoes' Gross Margin % too high?
Contax Participacoes' current Gross Margin % of 19.64% is 17755% above median its 10-year median of 0.11. The Business Services industry median Gross Margin % is 34.46. Contax Participacoes' value of 19.64% is 43% below this industry median. Based on the distribution chart, Contax Participacoes ranks #709 out of 1007 companies in the Business Services industry, which is below the industry midpoint. Overall, Contax Participacoes has a GF Score™ of 42/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Contax Participacoes' Gross Margin % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Contax Participacoes ranks #709 out of 1007 companies for Gross Margin %. This places Contax Participacoes in the lower half of its industry. The industry median Gross Margin % is 34.46. Contax Participacoes' value of 19.64% is 43% below this benchmark. While the company's 10-year median is 0.11 vs. the industry median of 34.46, Contax Participacoes 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. Contax Participacoes's current Gross Margin % of 19.64% is 43% 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 Contax Participacoes 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. Contax Participacoes's current Gross Margin % is 19.64%, which is 17755% above median its own 10-year median of 0.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Contax Participacoes stock overvalued right now?
Based on GuruFocus' analysis, Contax Participacoes (BSP:CTAX3) is currently considered Possible Value Trap. The stock's GF Value™ is R$1.48, compared to a current price of R$0.46 — trading 68.9% below its estimated fair value. The current Gross Margin % is 19.64%, which is 17755% above median its 10-year median of 0.11 and 43% below the Business Services industry median of 34.46. Contax Participacoes' overall GF Score™ is 42/100 with 3 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 Contax Participacoes (BSP:CTAX3), the current Gross Margin % is 19.64% 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 Contax Participacoes (BSP:CTAX3) Overvalued in 2026?
Based on GuruFocus' analysis, Contax Participacoes stock appears to be undervalued.
The current stock price of R$0.46 is trading 68.9% below its estimated GF Value™ of R$1.48.
GuruFocus considers Contax Participacoes to be Possible Value Trap.
Key valuation signals for BSP:CTAX3:
Gross Margin %: 19.64% (17755% above median its 10-year median of 0.11)
GF Value™: R$1.48 vs. price of R$0.46 (68.9% below fair value)
Industry Position: 43% below the Business Services median (#709 of 1007)
No single metric tells the full story. See the BSP:CTAX3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Contax Participacoes SA formerly, ATMA Participacoes SA is engaged in Industrial Maintenance and Facilities, (ii) Customer Service (contact center and trade marketing) and (iii) Information Technology.
42GF Score
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