The historical rank and industry rank for Australian Rare Earths's Gross Margin % or its related term are showing as below:
FRA:998's Gross Margin % is not ranked *
in the Metals & Mining industry.
Industry Median: 26.175 * Ranked among companies with meaningful Gross Margin % only.
Australian Rare Earths had a gross margin of N/A% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Australian Rare Earths was 0.00% per year.
Australian Rare Earths (FRA:998) 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
Australian Rare Earths had a gross margin of N/A% for the quarter that ended in Dec. 2025 => 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.
Australian Rare Earths Gross Margin % Related Terms
Australian Rare Earths Gross Margin % Historical Data
* Premium members only.
The historical data trend for Australian Rare Earths'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.
Australian Rare Earths Gross Margin % Competitor Comparison
For the Other Industrial Metals & Mining subindustry, Australian Rare Earths'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.
Australian Rare Earths Gross Margin % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Australian Rare Earths's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Australian Rare Earths'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.
Australian Rare Earths (FRA:998) has a Gross Margin % of 0.00% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Australian Rare Earths and its competitors. According to the industry distribution chart, Australian Rare Earths ranks #999999 out of 730 companies in the Metals & Mining industry.
Is Australian Rare Earths' Gross Margin % too high?
Australian Rare Earths' current Gross Margin % is 0.00%. Based on the distribution chart, Australian Rare Earths ranks #999999 out of 730 companies in the Metals & Mining industry, which is in the bottom quartile relative to peers. Overall, Australian Rare Earths has a GF Score™ of 34/100, reflecting its overall financial health beyond just this single metric.
How does Australian Rare Earths' Gross Margin % compare to competitors?
According to the Metals & Mining industry distribution chart, Australian Rare Earths ranks #999999 out of 730 companies for Gross Margin %. This places Australian Rare Earths in the lower half of its industry. The industry median Gross Margin % is 26.18. 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 Metals & Mining company?
The median Gross Margin % among Metals & Mining companies is 26.18, based on 730 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 Australian Rare Earths and its competitors. For the Metals & Mining industry, the median Gross Margin % is 26.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Australian Rare Earths's current Gross Margin % is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Australian Rare Earths stock overvalued right now?
Australian Rare Earths (FRA:998) has a current Gross Margin % of 0.00%. The current Gross Margin % is 0.00%. Australian Rare Earths' overall GF Score™ is 34/100 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 Australian Rare Earths (FRA:998), the current Gross Margin % is 0.00% as of Dec. 2025. 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.
Australian Rare Earths Ltd is engaged in rare earth exploration and development. Its Koppamurra Project is a frontier ionic clay, rare earth opportunity in South Australia and Victoria.
34GF Score
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