Canaf InvestmentsCAFZF 65 Gross Margin % is 12.41% as of Apr. 2026, which is 13% above its 10-year median of 10.99. GuruFocus rates CAFZF with a GF Score™ of 65/100 and a GF Value™ of $0.16 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 594 Steel companies, Canaf Investments ranks better than 54.88% 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
Canaf Investments had a gross margin of 12.41% for the quarter that ended in Apr. 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.
Canaf Investments Gross Margin % Related Terms
Canaf Investments Gross Margin % Historical Data
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The historical data trend for Canaf Investments'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.
CAFZF vs HCC, AMR, METC: Gross Margin % Comparison
For the Coking Coal subindustry, Canaf Investments'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.
Canaf Investments Gross Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Canaf Investments's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Canaf Investments'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.
Canaf Investments (CAFZF) has a Gross Margin % of 12.41% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Canaf Investments and its competitors. This is 13% above median its historical median of 10.99. Over the past decade, Canaf Investments' Gross Margin % has ranged from 2.19 to 14.54. According to the industry distribution chart, Canaf Investments ranks #268 out of 594 companies in the Steel industry, placing it in the top 45.1%.
Is Canaf Investments' Gross Margin % too high?
Canaf Investments' current Gross Margin % of 12.41% is 13% above median its 10-year median of 10.99. Over the past 10 years, this metric has ranged from a low of 2.19 to a high of 14.54. The Steel industry median Gross Margin % is 12.61. Canaf Investments' value of 12.41% is 1.6% below this industry median. Based on the distribution chart, Canaf Investments ranks #268 out of 594 companies in the Steel industry, which is above the industry midpoint. Overall, Canaf Investments has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Canaf Investments' Gross Margin % compare to HCC and AMR?
According to the Steel industry distribution chart, Canaf Investments ranks #268 out of 594 companies for Gross Margin %. This puts Canaf Investments in the upper half of its industry. The industry median Gross Margin % is 12.61. Canaf Investments' value of 12.41% is 1.6% below this benchmark. Historically, Canaf Investments' own Gross Margin % has ranged from 2.19 to 14.54 over the past decade. While the company's 10-year median is 10.99 vs. the industry median of 12.61, Canaf Investments 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 Steel company?
The median Gross Margin % among Steel companies is 12.61, based on 594 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. Canaf Investments's current Gross Margin % of 12.41% is 1.6% 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 Canaf Investments and its competitors. For the Steel industry, the median Gross Margin % is 12.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Canaf Investments's current Gross Margin % is 12.41%, which is 13% above median its own 10-year median of 10.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Canaf Investments stock overvalued right now?
Based on GuruFocus' analysis, Canaf Investments (CAFZF) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.16, compared to a current price of $0.24 — trading 49.4% above its estimated fair value. The current Gross Margin % is 12.41%, which is 13% above median its 10-year median of 10.99 and 1.6% below the Steel industry median of 12.61. Canaf Investments' overall GF Score™ is 65/100 with 1 warning sign 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 Canaf Investments (CAFZF), the current Gross Margin % is 12.41% as of Apr. 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 Canaf Investments (CAFZF) Overvalued in 2026?
Based on GuruFocus' analysis, Canaf Investments stock appears to be overvalued.
The current stock price of $0.24 is trading 49.4% above its estimated GF Value™ of $0.16.
GuruFocus considers Canaf Investments to be Significantly Overvalued.
Key valuation signals for CAFZF:
Gross Margin %: 12.41% (13% above median its 10-year median of 10.99)
GF Value™: $0.16 vs. price of $0.24 (49.4% above fair value)
Industry Position: 1.6% below the Steel median (#268 of 594)
No single metric tells the full story. See the CAFZF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Canaf Investments Inc is a Canadian company that owns and operates a coal processing plant in South Africa that processes coal and coal products into calcine, a coke substitute with high carbon content. The company, through its subsidiaries, produces calcined anthracite used in the manufacturing process of steel and manganese. The company operates in two reportable segments: head office operations in Canada and the coal processing business in South Africa, out of which the majority of revenue comes from South Africa.
65GF Score
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