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
PT Merdeka Battery Materials Tbk had a gross margin of 27.43% for the quarter that ended in Mar. 2026 => 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.
PT Merdeka Battery Materials Tbk Gross Margin % Related Terms
PT Merdeka Battery Materials Tbk 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.
For the Other Precious Metals & Mining subindustry, PT Merdeka Battery Materials Tbk'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.
PT Merdeka Battery Materials Tbk Gross Margin % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, PT Merdeka Battery Materials Tbk's Gross Margin % distribution charts can be found below:
* The bar in red indicates where PT Merdeka Battery Materials Tbk'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.
PT Merdeka Battery Materials Tbk (ISX:MBMA) has a Gross Margin % of 27.43% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on PT Merdeka Battery Materials Tbk and its competitors. This is 244% above median its historical median of 7.97. Over the past decade, PT Merdeka Battery Materials Tbk's Gross Margin % has ranged from 5.83 to 17.96. According to the industry distribution chart, PT Merdeka Battery Materials Tbk ranks #448 out of 731 companies in the Metals & Mining industry, placing it in the top 61.3%.
Is PT Merdeka Battery Materials Tbk's Gross Margin % too high?
PT Merdeka Battery Materials Tbk's current Gross Margin % of 27.43% is 244% above median its 10-year median of 7.97. Over the past 10 years, this metric has ranged from a low of 5.83 to a high of 17.96. The Metals & Mining industry median Gross Margin % is 26.20. PT Merdeka Battery Materials Tbk's value of 27.43% is 4.7% above this industry median. Based on the distribution chart, PT Merdeka Battery Materials Tbk ranks #448 out of 731 companies in the Metals & Mining industry, which is below the industry midpoint. Overall, PT Merdeka Battery Materials Tbk has a GF Score™ of 49/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does PT Merdeka Battery Materials Tbk's Gross Margin % compare to HL and SIND?
According to the Metals & Mining industry distribution chart, PT Merdeka Battery Materials Tbk ranks #448 out of 731 companies for Gross Margin %. This places PT Merdeka Battery Materials Tbk in the lower half of its industry. The industry median Gross Margin % is 26.20. PT Merdeka Battery Materials Tbk's value of 27.43% is 4.7% above this benchmark. Historically, PT Merdeka Battery Materials Tbk's own Gross Margin % has ranged from 5.83 to 17.96 over the past decade. While the company's 10-year median is 7.97 vs. the industry median of 26.20, PT Merdeka Battery Materials Tbk 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 Metals & Mining company?
The median Gross Margin % among Metals & Mining companies is 26.20, based on 731 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. PT Merdeka Battery Materials Tbk's current Gross Margin % of 27.43% is 4.7% 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 PT Merdeka Battery Materials Tbk and its competitors. For the Metals & Mining industry, the median Gross Margin % is 26.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PT Merdeka Battery Materials Tbk's current Gross Margin % is 27.43%, which is 244% above median its own 10-year median of 7.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PT Merdeka Battery Materials Tbk stock overvalued right now?
Based on GuruFocus' analysis, PT Merdeka Battery Materials Tbk (ISX:MBMA) is currently considered Significantly Undervalued. The stock's GF Value™ is Rp801.40, compared to a current price of Rp494.00 — trading 38.4% below its estimated fair value. The current Gross Margin % is 27.43%, which is 244% above median its 10-year median of 7.97 and 4.7% above the Metals & Mining industry median of 26.20. PT Merdeka Battery Materials Tbk's overall GF Score™ is 49/100 with 5 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 PT Merdeka Battery Materials Tbk (ISX:MBMA), the current Gross Margin % is 27.43% 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 PT Merdeka Battery Materials Tbk (ISX:MBMA) Overvalued in 2026?
Based on GuruFocus' analysis, PT Merdeka Battery Materials Tbk stock appears to be undervalued.
The current stock price of Rp494.00 is trading 38.4% below its estimated GF Value™ of Rp801.40.
GuruFocus considers PT Merdeka Battery Materials Tbk to be Significantly Undervalued.
Key valuation signals for ISX:MBMA:
Gross Margin %: 27.43% (244% above median its 10-year median of 7.97)
GF Value™: Rp801.40 vs. price of Rp494.00 (38.4% below fair value)
Industry Position: 4.7% above the Metals & Mining median (#448 of 731)
No single metric tells the full story. See the ISX:MBMA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PT Merdeka Battery Materials Tbk Business Description
PT Merdeka Battery Materials Tbk is an integrated battery materials and nickel processing company focused on the electric vehicle (EV) battery value chain in Indonesia. The company engages in nickel mining, smelting, and downstream battery material processing activities. Its business operations include the SCM Mine, RKEF smelters, Nickel Matte operations, AIM Project, IKIP industrial area development, and HPAL projects. The company operates through Mining, Manufacturing, and Other segments, with the majority of revenue generated from the Manufacturing segment.
49GF Score
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