Patagonia GoldHGLD -4.65%24 Gross Margin % is 13.65% as of Mar. 2026, which is 40% below its 10-year median of 22.62. GuruFocus rates HGLD with a GF Score™ of 24/100 and a GF Value™ of $0.03 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 730 Metals & Mining companies, Patagonia Gold ranks worse than 59.45% 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
Patagonia Gold had a gross margin of 13.65% 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.
Patagonia Gold Gross Margin % Related Terms
Patagonia Gold Gross Margin % Historical Data
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The historical data trend for Patagonia Gold'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, Patagonia Gold'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.
Patagonia Gold Gross Margin % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Patagonia Gold's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Patagonia Gold'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.
Patagonia Gold (HGLD) has a Gross Margin % of 13.65% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Patagonia Gold and its competitors. This is 40% below median its historical median of 22.62. According to the industry distribution chart, Patagonia Gold ranks #434 out of 730 companies in the Metals & Mining industry, placing it in the top 59.5%.
Is Patagonia Gold's Gross Margin % too high?
Patagonia Gold's current Gross Margin % of 13.65% is 40% below median its 10-year median of 22.62. The Metals & Mining industry median Gross Margin % is 26.18. Patagonia Gold's value of 13.65% is 47.9% below this industry median. Based on the distribution chart, Patagonia Gold ranks #434 out of 730 companies in the Metals & Mining industry, which is below the industry midpoint. Overall, Patagonia Gold has a GF Score™ of 24/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Patagonia Gold's Gross Margin % compare to HL?
According to the Metals & Mining industry distribution chart, Patagonia Gold ranks #434 out of 730 companies for Gross Margin %. This places Patagonia Gold in the lower half of its industry. The industry median Gross Margin % is 26.18. Patagonia Gold's value of 13.65% is 47.9% below this benchmark. While the company's 10-year median is 22.62 vs. the industry median of 26.18, Patagonia Gold 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. Patagonia Gold's current Gross Margin % of 13.65% is 47.9% 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 Patagonia Gold 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. Patagonia Gold's current Gross Margin % is 13.65%, which is 40% below median its own 10-year median of 22.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Patagonia Gold stock overvalued right now?
Based on GuruFocus' analysis, Patagonia Gold (HGLD) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.03, compared to a current price of $0.41 — trading 1266.7% above its estimated fair value. The current Gross Margin % is 13.65%, which is 40% below median its 10-year median of 22.62 and 47.9% below the Metals & Mining industry median of 26.18. Patagonia Gold's overall GF Score™ is 24/100 with 7 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 Patagonia Gold (HGLD), the current Gross Margin % is 13.65% 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 Patagonia Gold (HGLD) Overvalued in 2026?
Based on GuruFocus' analysis, Patagonia Gold stock appears to be overvalued.
The current stock price of $0.41 is trading 1266.7% above its estimated GF Value™ of $0.03.
GuruFocus considers Patagonia Gold to be Significantly Overvalued.
Key valuation signals for HGLD:
Gross Margin %: 13.65% (40% below median its 10-year median of 22.62)
GF Value™: $0.03 vs. price of $0.41 (1266.7% above fair value)
Industry Position: 47.9% below the Metals & Mining median (#434 of 730)
No single metric tells the full story. See the HGLD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Patagonia Gold Corp is a Canada-based mineral exploration company. The firm is engaged in the exploration, development, and production of gold and silver projects in the southern Patagonia region of Argentina and Chile. It also holds interests in mineral exploration companies, which are involved in the identification, acquisition, development, and exploitation of mineral projects. Some of its projects include the Calcatreu, Cap-Oeste, El Tranquilo, La Josefina, La Manchuria and others.
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