Avis Budget GroupCAR +1.07%74 Gross Margin % is 64.45% as of Mar. 2026, which is 11% below its 10-year median of 72.65. GuruFocus rates CAR with a GF Score™ of 74/100 and a GF Value™ of $131.03 (Modestly Overvalued). The stock has 9 warning signs investors should review. Among 1,007 Business Services companies, Avis Budget Group ranks better than 82.42% on this metric.
Avis Budget Group Inc gross margin has been in long-term decline. The average rate of decline per year is -1.6%.
The historical rank and industry rank for Avis Budget Group's Gross Margin % or its related term are showing as below:
CAR'
s Gross Margin % Range Over the Past 10 Years
Min: 66.85 Med: 72.65 Max: 82.72
Current: 69.08
During the past 13 years, the highestGross Margin % of Avis Budget Group was 82.72%. The lowest was 66.85%. And the median was 72.65%.
CAR's Gross Margin % is ranked better than 82.42% of 1007
companies
in the Business Services industry
Industry Median: 34.46
vs CAR: 69.08
Avis Budget Group had a gross margin of 64.45% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Avis Budget Group was -1.60% per year.
Avis Budget Group (NAS:CAR) 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
Avis Budget Group had a gross margin of 64.45% 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.
Avis Budget Group Gross Margin % Related Terms
Avis Budget Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for Avis Budget Group'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.
For the Rental & Leasing Services subindustry, Avis Budget Group'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.
Avis Budget Group Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Avis Budget Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Avis Budget Group'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.
Avis Budget Group (CAR) has a Gross Margin % of 64.45% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Avis Budget Group and its competitors. This is 11% below median its historical median of 72.65. Over the past decade, Avis Budget Group's Gross Margin % has ranged from 66.85 to 82.72. According to the industry distribution chart, Avis Budget Group ranks #177 out of 1007 companies in the Business Services industry, placing it in the top 17.6%.
Is Avis Budget Group's Gross Margin % too high?
Avis Budget Group's current Gross Margin % of 64.45% is 11% below median its 10-year median of 72.65. Over the past 10 years, this metric has ranged from a low of 66.85 to a high of 82.72. The Business Services industry median Gross Margin % is 34.46. Avis Budget Group's value of 64.45% is 87% above this industry median. Based on the distribution chart, Avis Budget Group ranks #177 out of 1007 companies in the Business Services industry, which is in the top quartile — a strong position relative to peers. Overall, Avis Budget Group has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Avis Budget Group's Gross Margin % compare to GATX and EQPT?
According to the Business Services industry distribution chart, Avis Budget Group ranks #177 out of 1007 companies for Gross Margin %. This places Avis Budget Group in the top 18% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 34.46. Avis Budget Group's value of 64.45% is 87% above this benchmark. Historically, Avis Budget Group's own Gross Margin % has ranged from 66.85 to 82.72 over the past decade. While the company's 10-year median is 72.65 vs. the industry median of 34.46, Avis Budget Group 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 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. Avis Budget Group's current Gross Margin % of 64.45% is 87% 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 Avis Budget Group 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. Avis Budget Group's current Gross Margin % is 64.45%, which is 11% below median its own 10-year median of 72.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Avis Budget Group stock overvalued right now?
Based on GuruFocus' analysis, Avis Budget Group (CAR) is currently considered Modestly Overvalued. The stock's GF Value™ is $131.03, compared to a current price of $166.49 — trading 27.1% above its estimated fair value. The current Gross Margin % is 64.45%, which is 11% below median its 10-year median of 72.65 and 87% above the Business Services industry median of 34.46. Avis Budget Group's overall GF Score™ is 74/100 with 9 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 Avis Budget Group (CAR), the current Gross Margin % is 64.45% 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 Avis Budget Group (CAR) Overvalued in 2026?
Based on GuruFocus' analysis, Avis Budget Group stock appears to be overvalued.
The current stock price of $166.49 is trading 27.1% above its estimated GF Value™ of $131.03.
GuruFocus considers Avis Budget Group to be Modestly Overvalued.
Key valuation signals for CAR:
Gross Margin %: 64.45% (11% below median its 10-year median of 72.65)
GF Value™: $131.03 vs. price of $166.49 (27.1% above fair value)
Industry Position: 87% above the Business Services median (#177 of 1007)
No single metric tells the full story. See the CAR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Avis Budget Group Inc is a provider of mobility solutions through its three brands Avis, Budget and Zipcar, as well as several other brands, well recognized in their respective markets. Its brands offer a range of options, from car and truck rental to car sharing. The company operates in two reportable business segments: Americas - (i) vehicle rental operations in North America, South America, Central America and the Caribbean, (ii) car sharing operations in certain of these markets, and (iii) licensees in the areas in which do not operate directly. International - consisting of (i) vehicle rental operations in Europe, the Middle East, Africa, Asia and Australasia, (ii) car sharing operations in certain of these markets, and (iii) licensees in the areas in which do not operate directly.
74GF Score
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