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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
Alpha Metallurgical Resources had a gross margin of 1.87% 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.
Alpha Metallurgical Resources Gross Margin % Related Terms
Alpha Metallurgical Resources Gross Margin % Historical Data
* 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:7K6 vs SXC, METC, AREC: Gross Margin % Comparison
For the Coking Coal subindustry, Alpha Metallurgical Resources'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.
Alpha Metallurgical Resources Gross Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Alpha Metallurgical Resources's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Alpha Metallurgical Resources'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.
Alpha Metallurgical Resources (FRA:7K6) has a Gross Margin % of 1.87% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Alpha Metallurgical Resources and its competitors. This is 87% below median its historical median of 13.86. According to the industry distribution chart, Alpha Metallurgical Resources ranks #533 out of 595 companies in the Steel industry, placing it in the top 89.6%.
Is Alpha Metallurgical Resources' Gross Margin % too high?
Alpha Metallurgical Resources' current Gross Margin % of 1.87% is 87% below median its 10-year median of 13.86. The Steel industry median Gross Margin % is 12.50. Alpha Metallurgical Resources' value of 1.87% is 85% below this industry median. Based on the distribution chart, Alpha Metallurgical Resources ranks #533 out of 595 companies in the Steel industry, which is in the bottom quartile relative to peers. Overall, Alpha Metallurgical Resources has a GF Score™ of 32/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Alpha Metallurgical Resources' Gross Margin % compare to SXC and METC?
According to the Steel industry distribution chart, Alpha Metallurgical Resources ranks #533 out of 595 companies for Gross Margin %. This places Alpha Metallurgical Resources in the lower half of its industry. The industry median Gross Margin % is 12.50. Alpha Metallurgical Resources' value of 1.87% is 85% below this benchmark. While the company's 10-year median is 13.86 vs. the industry median of 12.50, Alpha Metallurgical Resources 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 12.50, based on 595 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. Alpha Metallurgical Resources's current Gross Margin % of 1.87% is 85% 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 Alpha Metallurgical Resources and its competitors. For the Steel industry, the median Gross Margin % is 12.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alpha Metallurgical Resources's current Gross Margin % is 1.87%, which is 87% below median its own 10-year median of 13.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alpha Metallurgical Resources stock overvalued right now?
Based on GuruFocus' analysis, Alpha Metallurgical Resources (FRA:7K6) is currently considered Modestly Undervalued. The stock's GF Value™ is €151.90, compared to a current price of €122.00 — trading 19.7% below its estimated fair value. The current Gross Margin % is 1.87%, which is 87% below median its 10-year median of 13.86 and 85% below the Steel industry median of 12.50. Alpha Metallurgical Resources' overall GF Score™ is 32/100 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 Alpha Metallurgical Resources (FRA:7K6), the current Gross Margin % is 1.87% 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 Alpha Metallurgical Resources (FRA:7K6) Overvalued in 2026?
Based on GuruFocus' analysis, Alpha Metallurgical Resources stock appears to be undervalued.
The current stock price of €122.00 is trading 19.7% below its estimated GF Value™ of €151.90.
GuruFocus considers Alpha Metallurgical Resources to be Modestly Undervalued.
Key valuation signals for FRA:7K6:
Gross Margin %: 1.87% (87% below median its 10-year median of 13.86)
GF Value™: €151.90 vs. price of €122.00 (19.7% below fair value)
Industry Position: 85% below the Steel median (#533 of 595)
No single metric tells the full story. See the FRA:7K6 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alpha Metallurgical Resources Inc is a Tennessee-based coal mining company with operations across Virginia and West Virginia. The company's portfolio of mining operations consists of underground mines, surface mines, and coal preparation plants. It produces low-ash metallurgical coal, including High-Vol. A, Mid-Vol., High-Vol. B, and Low-Vol. coal, which is shipped to domestic and international coke and steel producers. The reportable segment of the company is Met. It extracts, processes and markets met and thermal coal from deep and surface mines for sale to steel and coke producers, industrial customers, and electric utilities.
32GF Score
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