Arla Plast ABFRA:7JB +3.19%73 Gross Margin % is 22.52% as of Mar. 2026, which is 8% above its 10-year median of 20.77. GuruFocus rates FRA:7JB with a GF Score™ of 73/100 and a GF Value™ of €4.69 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,560 Chemicals companies, Arla Plast AB ranks worse than 51.79% on this metric.
The historical rank and industry rank for Arla Plast AB's Gross Margin % or its related term are showing as below:
FRA:7JB'
s Gross Margin % Range Over the Past 10 Years
Min: 13.24 Med: 20.77 Max: 23.63
Current: 22.8
During the past 8 years, the highestGross Margin % of Arla Plast AB was 23.63%. The lowest was 13.24%. And the median was 20.77%.
FRA:7JB's Gross Margin % is ranked worse than 51.79% of 1560
companies
in the Chemicals industry
Industry Median: 23.36
vs FRA:7JB: 22.80
Arla Plast AB had a gross margin of 22.52% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Arla Plast AB was 1.30% per year.
Arla Plast AB (FRA:7JB) 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
Arla Plast AB had a gross margin of 22.52% for the quarter that ended in Mar. 2026 => Competition eroding margins
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.
Arla Plast AB Gross Margin % Related Terms
Arla Plast AB Gross Margin % Historical Data
* Premium members only.
The historical data trend for Arla Plast AB'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.
FRA:7JB vs LIN, SHW, ECL: Gross Margin % Comparison
For the Specialty Chemicals subindustry, Arla Plast AB'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.
Arla Plast AB Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Arla Plast AB's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Arla Plast AB'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.
Arla Plast AB (FRA:7JB) has a Gross Margin % of 22.52% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Arla Plast AB and its competitors. This is near median its historical median of 20.77. Over the past decade, Arla Plast AB's Gross Margin % has ranged from 13.24 to 23.63. According to the industry distribution chart, Arla Plast AB ranks #808 out of 1560 companies in the Chemicals industry, placing it in the top 51.8%.
Is Arla Plast AB's Gross Margin % too high?
Arla Plast AB's current Gross Margin % of 22.52% is near median its 10-year median of 20.77. Over the past 10 years, this metric has ranged from a low of 13.24 to a high of 23.63. The Chemicals industry median Gross Margin % is 23.36. Arla Plast AB's value of 22.52% is 3.6% below this industry median. Based on the distribution chart, Arla Plast AB ranks #808 out of 1560 companies in the Chemicals industry, which is below the industry midpoint. Overall, Arla Plast AB has a GF Score™ of 73/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Arla Plast AB's Gross Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Arla Plast AB ranks #808 out of 1560 companies for Gross Margin %. This places Arla Plast AB in the lower half of its industry. The industry median Gross Margin % is 23.36. Arla Plast AB's value of 22.52% is 3.6% below this benchmark. Historically, Arla Plast AB's own Gross Margin % has ranged from 13.24 to 23.63 over the past decade. While the company's 10-year median is 20.77 vs. the industry median of 23.36, Arla Plast AB 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 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. Arla Plast AB's current Gross Margin % of 22.52% is 3.6% 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 Arla Plast AB 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. Arla Plast AB's current Gross Margin % is 22.52%, which is near median its own 10-year median of 20.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arla Plast AB stock overvalued right now?
Based on GuruFocus' analysis, Arla Plast AB (FRA:7JB) is currently considered Modestly Undervalued. The stock's GF Value™ is €4.69, compared to a current price of €3.40 — trading 27.5% below its estimated fair value. The current Gross Margin % is 22.52%, which is near median its 10-year median of 20.77 and 3.6% below the Chemicals industry median of 23.36. Arla Plast AB's overall GF Score™ is 73/100 with 2 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 Arla Plast AB (FRA:7JB), the current Gross Margin % is 22.52% 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 Arla Plast AB (FRA:7JB) Overvalued in 2026?
Based on GuruFocus' analysis, Arla Plast AB stock appears to be undervalued.
The current stock price of €3.40 is trading 27.5% below its estimated GF Value™ of €4.69.
GuruFocus considers Arla Plast AB to be Modestly Undervalued.
Key valuation signals for FRA:7JB:
Gross Margin %: 22.52% (near median its 10-year median of 20.77)
GF Value™: €4.69 vs. price of €3.40 (27.5% below fair value)
Industry Position: 3.6% below the Chemicals median (#808 of 1560)
No single metric tells the full story. See the FRA:7JB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arla Plast AB is a extruders of plastic sheets in Europe. It offers plastic solid sheets and multiwall sheets in Polycarbonate, Polyethylene terephthalate glycol, ABS and other materials.
73GF Score
Get the complete analysis for FRA:7JB
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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