Parsan Makina Parcalarinayii AS (IST:PARSN) 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
Parsan Makina Parcalarinayii AS had a gross margin of 5.91% for the quarter that ended in Sep. 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.
Parsan Makina Parcalarinayii AS Gross Margin % Related Terms
Parsan Makina Parcalarinayii AS 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.
Parsan Makina Parcalarinayii AS Gross Margin % Chart
IST:PARSN vs ORLY, AZO, GPC: Gross Margin % Comparison
For the Auto Parts subindustry, Parsan Makina Parcalarinayii AS'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.
Parsan Makina Parcalarinayii AS Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Parsan Makina Parcalarinayii AS's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Parsan Makina Parcalarinayii AS'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.
Parsan Makina Parcalarinayii AS (IST:PARSN) has a Gross Margin % of 5.91% as of Sep. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Parsan Makina Parcalarinayii AS and its competitors. This is 76% below median its historical median of 24.28. Over the past decade, Parsan Makina Parcalarinayii AS's Gross Margin % has ranged from 5.27 to 34.12. According to the industry distribution chart, Parsan Makina Parcalarinayii AS ranks #1247 out of 1310 companies in the Vehicles & Parts industry, placing it in the top 95.2%.
Is Parsan Makina Parcalarinayii AS's Gross Margin % too high?
Parsan Makina Parcalarinayii AS's current Gross Margin % of 5.91% is 76% below median its 10-year median of 24.28. Over the past 10 years, this metric has ranged from a low of 5.27 to a high of 34.12. The Vehicles & Parts industry median Gross Margin % is 19.84. Parsan Makina Parcalarinayii AS's value of 5.91% is 70.2% below this industry median. Based on the distribution chart, Parsan Makina Parcalarinayii AS ranks #1247 out of 1310 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, Parsan Makina Parcalarinayii AS has a GF Score™ of 60/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Parsan Makina Parcalarinayii AS's Gross Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Parsan Makina Parcalarinayii AS ranks #1247 out of 1310 companies for Gross Margin %. This places Parsan Makina Parcalarinayii AS in the lower half of its industry. The industry median Gross Margin % is 19.84. Parsan Makina Parcalarinayii AS's value of 5.91% is 70.2% below this benchmark. Historically, Parsan Makina Parcalarinayii AS's own Gross Margin % has ranged from 5.27 to 34.12 over the past decade. While the company's 10-year median is 24.28 vs. the industry median of 19.84, Parsan Makina Parcalarinayii AS 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 Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.84, based on 1,310 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. Parsan Makina Parcalarinayii AS's current Gross Margin % of 5.91% is 70.2% 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 Parsan Makina Parcalarinayii AS and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Parsan Makina Parcalarinayii AS's current Gross Margin % is 5.91%, which is 76% below median its own 10-year median of 24.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Parsan Makina Parcalarinayii AS stock overvalued right now?
Based on GuruFocus' analysis, Parsan Makina Parcalarinayii AS (IST:PARSN) is currently considered Modestly Undervalued. The stock's GF Value™ is ₺121.92, compared to a current price of ₺86.30 — trading 29.2% below its estimated fair value. The current Gross Margin % is 5.91%, which is 76% below median its 10-year median of 24.28 and 70.2% below the Vehicles & Parts industry median of 19.84. Parsan Makina Parcalarinayii AS's overall GF Score™ is 60/100 with 8 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 Parsan Makina Parcalarinayii AS (IST:PARSN), the current Gross Margin % is 5.91% as of Sep. 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.
Is Parsan Makina Parcalarinayii AS (IST:PARSN) Overvalued in 2026?
Based on GuruFocus' analysis, Parsan Makina Parcalarinayii AS stock appears to be undervalued.
The current stock price of ₺86.30 is trading 29.2% below its estimated GF Value™ of ₺121.92.
GuruFocus considers Parsan Makina Parcalarinayii AS to be Modestly Undervalued.
Key valuation signals for IST:PARSN:
Gross Margin %: 5.91% (76% below median its 10-year median of 24.28)
GF Value™: ₺121.92 vs. price of ₺86.30 (29.2% below fair value)
Industry Position: 70.2% below the Vehicles & Parts median (#1247 of 1310)
No single metric tells the full story. See the IST:PARSN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Parsan Makina Parcalarinayii AS Business Description
Parsan Makina Parcalari Sanayii AS is a Turkey-based company involved in the business of forging, heat treatment, special machining and die production. It manufactures Cardan shafts, spider gears, slip shafts, other automotive products, rear axle shafts, front axle beams, and front axle assemblies, and track assemblies.
60GF Score
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