DHA:FARCHEM's Gross Margin % is ranked worse than 97.95% of 1560
companies
in the Chemicals industry
Industry Median: 23.36
vs DHA:FARCHEM: -9.24
FAR Chemical Industry had a gross margin of -21.54% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for FAR Chemical Industry was 0.00% per year.
FAR Chemical Industry (DHA:FARCHEM) 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
FAR Chemical Industry had a gross margin of -21.54% 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.
FAR Chemical Industry Gross Margin % Related Terms
FAR Chemical Industry Gross Margin % Historical Data
* Premium members only.
The historical data trend for FAR Chemical Industry'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.
DHA:FARCHEM vs LIN, SHW, ECL: Gross Margin % Comparison
For the Specialty Chemicals subindustry, FAR Chemical Industry'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.
FAR Chemical Industry Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, FAR Chemical Industry's Gross Margin % distribution charts can be found below:
* The bar in red indicates where FAR Chemical Industry'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.
FAR Chemical Industry (DHA:FARCHEM) has a Gross Margin % of -21.54% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on FAR Chemical Industry and its competitors. According to the industry distribution chart, FAR Chemical Industry ranks #1528 out of 1560 companies in the Chemicals industry, placing it in the top 97.9%.
Is FAR Chemical Industry's Gross Margin % too high?
FAR Chemical Industry's current Gross Margin % is -21.54%. Based on the distribution chart, FAR Chemical Industry ranks #1528 out of 1560 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, FAR Chemical Industry has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does FAR Chemical Industry's Gross Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, FAR Chemical Industry ranks #1528 out of 1560 companies for Gross Margin %. This places FAR Chemical Industry in the lower half of its industry. The industry median Gross Margin % is 23.36. 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 Chemicals company?
The median Gross Margin % among Chemicals companies is 23.36, based on 1,560 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. 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 FAR Chemical Industry and its competitors. For the Chemicals industry, the median Gross Margin % is 23.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. FAR Chemical Industry's current Gross Margin % is -21.54%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is FAR Chemical Industry stock overvalued right now?
Based on GuruFocus' analysis, FAR Chemical Industry (DHA:FARCHEM) is currently considered Fairly Valued. The stock's GF Value™ is BDT18.85, compared to a current price of BDT19.50 — trading 3.4% above its estimated fair value. The current Gross Margin % is -21.54%. FAR Chemical Industry's overall GF Score™ is 86/100 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 FAR Chemical Industry (DHA:FARCHEM), the current Gross Margin % is -21.54% 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 FAR Chemical Industry (DHA:FARCHEM) Overvalued in 2026?
Based on GuruFocus' analysis, FAR Chemical Industry stock appears to be overvalued.
The current stock price of BDT19.50 is trading 3.4% above its estimated GF Value™ of BDT18.85.
GuruFocus considers FAR Chemical Industry to be Fairly Valued.
Key valuation signals for DHA:FARCHEM:
Gross Margin %: -21.54%
GF Value™: BDT18.85 vs. price of BDT19.50 (3.4% above fair value)
No single metric tells the full story. See the DHA:FARCHEM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
FAR Chemical Industry Ltd operates in the textile dyeing chemical industry. The company is principally engaged in the manufacture and export of Chemical products to different export-oriented Textiles, dyeing and Apparels industries. It generates all of its revenue from the sale of Yarn.
86GF 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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