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Capital Environment HoldingsFRA:H2Y Gross Margin % is 35.59% as of Dec. 2025, which is 19% above its 10-year median of 29.81. The stock has 4 warning signs investors should review. Among 234 Waste Management companies, Capital Environment Holdings ranks better than 66.67% on this metric.
Capital Environment Holdings (FRA:H2Y) 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
Capital Environment Holdings had a gross margin of 35.59% for the quarter that ended in Dec. 2025 => 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.
Capital Environment Holdings Gross Margin % Related Terms
Capital Environment Holdings 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:H2Y vs WM, RSG, WCN: Gross Margin % Comparison
For the Waste Management subindustry, Capital Environment Holdings'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.
Capital Environment Holdings Gross Margin % vs Waste Management Industry
For the Waste Management industry and Industrials sector, Capital Environment Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Capital Environment Holdings'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.
Capital Environment Holdings (FRA:H2Y) has a Gross Margin % of 35.59% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Capital Environment Holdings and its competitors. This is 19% above median its historical median of 29.81. Over the past decade, Capital Environment Holdings' Gross Margin % has ranged from 25.30 to 37.67. According to the industry distribution chart, Capital Environment Holdings ranks #78 out of 234 companies in the Waste Management industry, placing it in the top 33.3%.
Is Capital Environment Holdings' Gross Margin % too high?
Capital Environment Holdings' current Gross Margin % of 35.59% is 19% above median its 10-year median of 29.81. Over the past 10 years, this metric has ranged from a low of 25.30 to a high of 37.67. The Waste Management industry median Gross Margin % is 27.52. Capital Environment Holdings' value of 35.59% is 29.3% above this industry median. Based on the distribution chart, Capital Environment Holdings ranks #78 out of 234 companies in the Waste Management industry, which is above the industry midpoint.
How does Capital Environment Holdings' Gross Margin % compare to WM and RSG?
According to the Waste Management industry distribution chart, Capital Environment Holdings ranks #78 out of 234 companies for Gross Margin %. This puts Capital Environment Holdings in the upper half of its industry. The industry median Gross Margin % is 27.52. Capital Environment Holdings' value of 35.59% is 29.3% above this benchmark. Historically, Capital Environment Holdings' own Gross Margin % has ranged from 25.30 to 37.67 over the past decade. While the company's 10-year median is 29.81 vs. the industry median of 27.52, Capital Environment Holdings has consistently been above 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 Waste Management company?
The median Gross Margin % among Waste Management companies is 27.52, based on 234 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. Capital Environment Holdings's current Gross Margin % of 35.59% is 29.3% above 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 Capital Environment Holdings and its competitors. For the Waste Management industry, the median Gross Margin % is 27.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Capital Environment Holdings's current Gross Margin % is 35.59%, which is 19% above median its own 10-year median of 29.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Capital Environment Holdings stock overvalued right now?
Based on GuruFocus' analysis, Capital Environment Holdings (FRA:H2Y) is currently considered Possible Value Trap. The stock's GF Value™ is €0.01, compared to a current price of €0.01 — trading 40% below its estimated fair value. The current Gross Margin % is 35.59%, which is 19% above median its 10-year median of 29.81 and 29.3% above the Waste Management industry median of 27.52. 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 Capital Environment Holdings (FRA:H2Y), the current Gross Margin % is 35.59% 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.
Capital Environment Holdings Ltd is an investment holding company engaged in the provision of waste treatment technologies and services, which specializes in technology development, design, system integration, project investment, consultancy, operation, and maintenance of waste treatment facilities, especially waste-to-energy projects. The Group has a single reportable segment which is the Waste treatment & waste-to-energy business.
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