Gem DiamondsGMDMF Gross Margin % is 7.61% as of Dec. 2025, which is 76% below its 10-year median of 32.21. The stock has 5 warning signs investors should review. Among 730 Metals & Mining companies, Gem Diamonds ranks worse than 86.3% on this metric.
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
Gem Diamonds had a gross margin of 7.61% 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.
Gem Diamonds Gross Margin % Related Terms
Gem Diamonds Gross Margin % Historical Data
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The historical data trend for Gem Diamonds'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.
For the Other Precious Metals & Mining subindustry, Gem Diamonds'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.
Gem Diamonds Gross Margin % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Gem Diamonds's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Gem Diamonds'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.
Gem Diamonds (GMDMF) has a Gross Margin % of 7.61% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Gem Diamonds and its competitors. This is 76% below median its historical median of 32.21. Over the past decade, Gem Diamonds' Gross Margin % has ranged from 3.74 to 42.54. According to the industry distribution chart, Gem Diamonds ranks #630 out of 730 companies in the Metals & Mining industry, placing it in the top 86.3%.
Is Gem Diamonds' Gross Margin % too high?
Gem Diamonds' current Gross Margin % of 7.61% is 76% below median its 10-year median of 32.21. Over the past 10 years, this metric has ranged from a low of 3.74 to a high of 42.54. The Metals & Mining industry median Gross Margin % is 26.18. Gem Diamonds' value of 7.61% is 70.9% below this industry median. Based on the distribution chart, Gem Diamonds ranks #630 out of 730 companies in the Metals & Mining industry, which is in the bottom quartile relative to peers.
How does Gem Diamonds' Gross Margin % compare to HL?
According to the Metals & Mining industry distribution chart, Gem Diamonds ranks #630 out of 730 companies for Gross Margin %. This places Gem Diamonds in the lower half of its industry. The industry median Gross Margin % is 26.18. Gem Diamonds' value of 7.61% is 70.9% below this benchmark. Historically, Gem Diamonds' own Gross Margin % has ranged from 3.74 to 42.54 over the past decade. While the company's 10-year median is 32.21 vs. the industry median of 26.18, Gem Diamonds 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 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. Gem Diamonds's current Gross Margin % of 7.61% is 70.9% 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 Gem Diamonds 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. Gem Diamonds's current Gross Margin % is 7.61%, which is 76% below median its own 10-year median of 32.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gem Diamonds stock overvalued right now?
Based on GuruFocus' analysis, Gem Diamonds (GMDMF) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.03, compared to a current price of $0.04 — trading 43.8% above its estimated fair value. The current Gross Margin % is 7.61%, which is 76% below median its 10-year median of 32.21 and 70.9% below the Metals & Mining industry median of 26.18. 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 Gem Diamonds (GMDMF), the current Gross Margin % is 7.61% 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.
Gem Diamonds Ltd is a United Kingdom-based company engaged in the exploration and development of diamond mines. The company's geographical segments include Lesotho (diamond mining activities); Belgium (sales, marketing, and manufacturing of diamonds); and BVI, RSA, the UK, and Cyprus (technical and administrative services) and Botswana (diamond mining activities, currently on care and maintenance). It generates maximum revenue from the Belgium region. Its projects include Letseng Diamond mine and Ghaghoo Diamond mine. The company's revenue is derived from mining activities, polished manufacturing margins, and diamond analysis and manufacturing services.
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