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Air Arabia PJSCDFM:AIRARABIA -0.19%80 Gross Margin % is 16.77% as of Mar. 2026, which is 25% below its 10-year median of 22.46. GuruFocus rates DFM:AIRARABIA with a GF Score™ of 80/100 and a GF Value™ of د.إ3.84 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 982 Transportation companies, Air Arabia PJSC ranks better than 50.61% on this metric.
The historical rank and industry rank for Air Arabia PJSC's Gross Margin % or its related term are showing as below:
DFM:AIRARABIA'
s Gross Margin % Range Over the Past 10 Years
Min: 2.74 Med: 22.46 Max: 27.81
Current: 20.79
During the past 13 years, the highestGross Margin % of Air Arabia PJSC was 27.81%. The lowest was 2.74%. And the median was 22.46%.
DFM:AIRARABIA's Gross Margin % is ranked better than 50.61% of 982
companies
in the Transportation industry
Industry Median: 20.4
vs DFM:AIRARABIA: 20.79
Air Arabia PJSC had a gross margin of 16.77% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Air Arabia PJSC was 32.40% per year.
Air Arabia PJSC (DFM:AIRARABIA) 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
Air Arabia PJSC had a gross margin of 16.77% 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.
Air Arabia PJSC Gross Margin % Related Terms
Air Arabia PJSC Gross Margin % Historical Data
* Premium members only.
The historical data trend for Air Arabia PJSC'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.
DFM:AIRARABIA vs DAL, UAL, LUV: Gross Margin % Comparison
For the Airlines subindustry, Air Arabia PJSC'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.
Air Arabia PJSC Gross Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, Air Arabia PJSC's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Air Arabia PJSC'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.
Air Arabia PJSC (DFM:AIRARABIA) has a Gross Margin % of 16.77% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Air Arabia PJSC and its competitors. This is 25% below median its historical median of 22.46. Over the past decade, Air Arabia PJSC's Gross Margin % has ranged from 2.74 to 27.81. According to the industry distribution chart, Air Arabia PJSC ranks #485 out of 982 companies in the Transportation industry, placing it in the top 49.4%.
Is Air Arabia PJSC's Gross Margin % too high?
Air Arabia PJSC's current Gross Margin % of 16.77% is 25% below median its 10-year median of 22.46. Over the past 10 years, this metric has ranged from a low of 2.74 to a high of 27.81. The Transportation industry median Gross Margin % is 20.40. Air Arabia PJSC's value of 16.77% is 17.8% below this industry median. Based on the distribution chart, Air Arabia PJSC ranks #485 out of 982 companies in the Transportation industry, which is above the industry midpoint. Overall, Air Arabia PJSC has a GF Score™ of 80/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Air Arabia PJSC's Gross Margin % compare to DAL and UAL?
According to the Transportation industry distribution chart, Air Arabia PJSC ranks #485 out of 982 companies for Gross Margin %. This puts Air Arabia PJSC in the upper half of its industry. The industry median Gross Margin % is 20.40. Air Arabia PJSC's value of 16.77% is 17.8% below this benchmark. Historically, Air Arabia PJSC's own Gross Margin % has ranged from 2.74 to 27.81 over the past decade. While the company's 10-year median is 22.46 vs. the industry median of 20.40, Air Arabia PJSC 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 Transportation company?
The median Gross Margin % among Transportation companies is 20.40, based on 982 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. Air Arabia PJSC's current Gross Margin % of 16.77% is 17.8% 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 Air Arabia PJSC and its competitors. For the Transportation industry, the median Gross Margin % is 20.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Air Arabia PJSC's current Gross Margin % is 16.77%, which is 25% below median its own 10-year median of 22.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Air Arabia PJSC stock overvalued right now?
Based on GuruFocus' analysis, Air Arabia PJSC (DFM:AIRARABIA) is currently considered Significantly Overvalued. The stock's GF Value™ is د.إ3.84, compared to a current price of د.إ5.19 — trading 35.2% above its estimated fair value. The current Gross Margin % is 16.77%, which is 25% below median its 10-year median of 22.46 and 17.8% below the Transportation industry median of 20.40. Air Arabia PJSC's overall GF Score™ is 80/100 with 8 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 Air Arabia PJSC (DFM:AIRARABIA), the current Gross Margin % is 16.77% 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 Air Arabia PJSC (DFM:AIRARABIA) Overvalued in 2026?
Based on GuruFocus' analysis, Air Arabia PJSC stock appears to be overvalued.
The current stock price of د.إ5.19 is trading 35.2% above its estimated GF Value™ of د.إ3.84.
GuruFocus considers Air Arabia PJSC to be Significantly Overvalued.
Key valuation signals for DFM:AIRARABIA:
Gross Margin %: 16.77% (25% below median its 10-year median of 22.46)
GF Value™: د.إ3.84 vs. price of د.إ5.19 (35.2% above fair value)
Industry Position: 17.8% below the Transportation median (#485 of 982)
No single metric tells the full story. See the DFM:AIRARABIA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Air Arabia PJSC is a group of airlines and companies offering travel and tourism services internationally. Its activities include international commercial air transportation, aircraft trading and rental, aircraft spare parts trading, passenger transport, cargo services, aviation training, aircraft repairs and maintenance, as well as travel and tourist agencies, hotels, hotel apartment rentals, representative offices, and document transfer services. The company operates through two segments: Airline, covering air transportation, aircraft rental, passenger transport, cargo services, aviation training, and aircraft repairs and maintenance, and Other, covering travel and tourist agencies, hotels, hotel apartment rentals, representative offices, and document transfer services.
80GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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