Pt Multi Makmur Lemindo Tbk (ISX:PIPA) 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
Pt Multi Makmur Lemindo Tbk had a gross margin of -75.47% 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.
Pt Multi Makmur Lemindo Tbk Gross Margin % Related Terms
Pt Multi Makmur Lemindo 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.
ISX:PIPA vs TT, JCI, CARR: Gross Margin % Comparison
For the Building Products & Equipment subindustry, Pt Multi Makmur Lemindo 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 Multi Makmur Lemindo Tbk Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Pt Multi Makmur Lemindo Tbk's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Pt Multi Makmur Lemindo 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 Multi Makmur Lemindo Tbk (ISX:PIPA) has a Gross Margin % of -75.47% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Pt Multi Makmur Lemindo Tbk and its competitors. Over the past decade, Pt Multi Makmur Lemindo Tbk's Gross Margin % has ranged from 21.94 to 40.00. According to the industry distribution chart, Pt Multi Makmur Lemindo Tbk ranks #537 out of 1718 companies in the Construction industry, placing it in the top 31.3%.
Is Pt Multi Makmur Lemindo Tbk's Gross Margin % too high?
Pt Multi Makmur Lemindo Tbk's current Gross Margin % is -75.47%. Over the past 10 years, this metric has ranged from a low of 21.94 to a high of 40.00. Based on the distribution chart, Pt Multi Makmur Lemindo Tbk ranks #537 out of 1718 companies in the Construction industry, which is above the industry midpoint. Overall, Pt Multi Makmur Lemindo Tbk has a GF Score™ of 63/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Pt Multi Makmur Lemindo Tbk's Gross Margin % compare to TT and JCI?
According to the Construction industry distribution chart, Pt Multi Makmur Lemindo Tbk ranks #537 out of 1718 companies for Gross Margin %. This puts Pt Multi Makmur Lemindo Tbk in the upper half of its industry. The industry median Gross Margin % is 20.79. Historically, Pt Multi Makmur Lemindo Tbk's own Gross Margin % has ranged from 21.94 to 40.00 over the past decade. 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 Construction company?
The median Gross Margin % among Construction companies is 20.79, based on 1,718 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. 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 Multi Makmur Lemindo Tbk and its competitors. For the Construction industry, the median Gross Margin % is 20.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pt Multi Makmur Lemindo Tbk's current Gross Margin % is -75.47%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pt Multi Makmur Lemindo Tbk stock overvalued right now?
Based on GuruFocus' analysis, Pt Multi Makmur Lemindo Tbk (ISX:PIPA) is currently considered Significantly Overvalued. The stock's GF Value™ is Rp33.53, compared to a current price of Rp107.00 — trading 219.1% above its estimated fair value. The current Gross Margin % is -75.47%. Pt Multi Makmur Lemindo Tbk's overall GF Score™ is 63/100 with 2 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 Multi Makmur Lemindo Tbk (ISX:PIPA), the current Gross Margin % is -75.47% 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.
Is Pt Multi Makmur Lemindo Tbk (ISX:PIPA) Overvalued in 2026?
Based on GuruFocus' analysis, Pt Multi Makmur Lemindo Tbk stock appears to be overvalued.
The current stock price of Rp107.00 is trading 219.1% above its estimated GF Value™ of Rp33.53.
GuruFocus considers Pt Multi Makmur Lemindo Tbk to be Significantly Overvalued.
Key valuation signals for ISX:PIPA:
Gross Margin %: -75.47%
GF Value™: Rp33.53 vs. price of Rp107.00 (219.1% above fair value)
No single metric tells the full story. See the ISX:PIPA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pt Multi Makmur Lemindo Tbk is engaged in the engaged in manufacturing building materials made of PVC-based plastic such as PVC pipes, PVC fittings, PVC Hose, Cast Buckets and Water Tanks by toll-free at other factories using its patented brand.
63GF Score
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