Orizon Valorizacao De Residuos (BSP:ORVR3) 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
Orizon Valorizacao De Residuos had a gross margin of 40.09% for the quarter that ended in Mar. 2026 => Durable 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.
Orizon Valorizacao De Residuos Gross Margin % Related Terms
Orizon Valorizacao De Residuos 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.
Orizon Valorizacao De Residuos Gross Margin % Chart
BSP:ORVR3 vs WM, RSG, WCN: Gross Margin % Comparison
For the Waste Management subindustry, Orizon Valorizacao De Residuos'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.
Orizon Valorizacao De Residuos Gross Margin % vs Waste Management Industry
For the Waste Management industry and Industrials sector, Orizon Valorizacao De Residuos's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Orizon Valorizacao De Residuos'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.
Orizon Valorizacao De Residuos (BSP:ORVR3) has a Gross Margin % of 40.09% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Orizon Valorizacao De Residuos and its competitors. This is 26% above median its historical median of 31.91. Over the past decade, Orizon Valorizacao De Residuos' Gross Margin % has ranged from 25.36 to 46.20. According to the industry distribution chart, Orizon Valorizacao De Residuos ranks #52 out of 234 companies in the Waste Management industry, placing it in the top 22.2%.
Is Orizon Valorizacao De Residuos' Gross Margin % too high?
Orizon Valorizacao De Residuos' current Gross Margin % of 40.09% is 26% above median its 10-year median of 31.91. Over the past 10 years, this metric has ranged from a low of 25.36 to a high of 46.20. The Waste Management industry median Gross Margin % is 27.35. Orizon Valorizacao De Residuos' value of 40.09% is 46.6% above this industry median. Based on the distribution chart, Orizon Valorizacao De Residuos ranks #52 out of 234 companies in the Waste Management industry, which is in the top quartile — a strong position relative to peers. Overall, Orizon Valorizacao De Residuos has a GF Score™ of 87/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Orizon Valorizacao De Residuos' Gross Margin % compare to WM and RSG?
According to the Waste Management industry distribution chart, Orizon Valorizacao De Residuos ranks #52 out of 234 companies for Gross Margin %. This places Orizon Valorizacao De Residuos in the top 22% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 27.35. Orizon Valorizacao De Residuos' value of 40.09% is 46.6% above this benchmark. Historically, Orizon Valorizacao De Residuos' own Gross Margin % has ranged from 25.36 to 46.20 over the past decade. While the company's 10-year median is 31.91 vs. the industry median of 27.35, Orizon Valorizacao De Residuos has consistently been above 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 27.35, based on 234 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. Orizon Valorizacao De Residuos's current Gross Margin % of 40.09% is 46.6% above 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 Orizon Valorizacao De Residuos and its competitors. For the Waste Management industry, the median Gross Margin % is 27.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Orizon Valorizacao De Residuos's current Gross Margin % is 40.09%, which is 26% above median its own 10-year median of 31.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Orizon Valorizacao De Residuos stock overvalued right now?
Based on GuruFocus' analysis, Orizon Valorizacao De Residuos (BSP:ORVR3) is currently considered Modestly Overvalued. The stock's GF Value™ is R$63.11, compared to a current price of R$78.49 — trading 24.4% above its estimated fair value. The current Gross Margin % is 40.09%, which is 26% above median its 10-year median of 31.91 and 46.6% above the Waste Management industry median of 27.35. Orizon Valorizacao De Residuos' overall GF Score™ is 87/100 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 Orizon Valorizacao De Residuos (BSP:ORVR3), the current Gross Margin % is 40.09% 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 Orizon Valorizacao De Residuos (BSP:ORVR3) Overvalued in 2026?
Based on GuruFocus' analysis, Orizon Valorizacao De Residuos stock appears to be overvalued.
The current stock price of R$78.49 is trading 24.4% above its estimated GF Value™ of R$63.11.
GuruFocus considers Orizon Valorizacao De Residuos to be Modestly Overvalued.
Key valuation signals for BSP:ORVR3:
Gross Margin %: 40.09% (26% above median its 10-year median of 31.91)
GF Value™: R$63.11 vs. price of R$78.49 (24.4% above fair value)
Industry Position: 46.6% above the Waste Management median (#52 of 234)
No single metric tells the full story. See the BSP:ORVR3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Orizon Valorizacao De Residuos Business Description
Orizon Valorizacao De Residuos SA is a waste treatment and recovery company. The company offers solid waste treatment services, treatment of gases, processing and industrialization of waste, monitoring groundwater, and environmental remediation services.
87GF Score
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