AfrimatJSE:AFT -3.67%71 Gross Margin % is 15.18% as of Feb. 2026, which is 54% below its 10-year median of 33.22. GuruFocus rates JSE:AFT with a GF Score™ of 71/100 and a GF Value™ of R97.08 (Significantly Undervalued). The stock has 6 warning signs investors should review. Among 395 Building Materials companies, Afrimat ranks worse than 72.66% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Afrimat's Gross Profit for the
six
months ended in Feb. 2026 was R710 Mil. Afrimat's Revenue for the
six
months ended in Feb. 2026 was R4,679 Mil. Therefore, Afrimat's Gross Margin % for the quarter that ended in Feb. 2026 was 15.18%.
Warning Sign:
Afrimat Ltd gross margin has been in long-term decline. The average rate of decline per year is -16.3%.
The historical rank and industry rank for Afrimat's Gross Margin % or its related term are showing as below:
JSE:AFT'
s Gross Margin % Range Over the Past 10 Years
Min: 17.5 Med: 33.22 Max: 39.5
Current: 17.5
During the past 13 years, the highestGross Margin % of Afrimat was 39.50%. The lowest was 17.50%. And the median was 33.22%.
JSE:AFT's Gross Margin % is ranked worse than 72.66% of 395
companies
in the Building Materials industry
Industry Median: 26.18
vs JSE:AFT: 17.50
Afrimat had a gross margin of 15.18% for the quarter that ended in Feb. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Afrimat was -16.30% per year.
Afrimat (JSE:AFT) 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
Afrimat had a gross margin of 15.18% for the quarter that ended in Feb. 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.
Afrimat Gross Margin % Related Terms
Afrimat Gross Margin % Historical Data
* Premium members only.
The historical data trend for Afrimat'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.
JSE:AFT vs CRH, VMC, MLM: Gross Margin % Comparison
For the Building Materials subindustry, Afrimat'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.
Afrimat Gross Margin % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Afrimat's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Afrimat'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.
Afrimat (JSE:AFT) has a Gross Margin % of 15.18% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Afrimat and its competitors. This is 54% below median its historical median of 33.22. Over the past decade, Afrimat's Gross Margin % has ranged from 17.50 to 39.50. According to the industry distribution chart, Afrimat ranks #287 out of 395 companies in the Building Materials industry, placing it in the top 72.7%.
Is Afrimat's Gross Margin % too high?
Afrimat's current Gross Margin % of 15.18% is 54% below median its 10-year median of 33.22. Over the past 10 years, this metric has ranged from a low of 17.50 to a high of 39.50. The Building Materials industry median Gross Margin % is 26.18. Afrimat's value of 15.18% is 42% below this industry median. Based on the distribution chart, Afrimat ranks #287 out of 395 companies in the Building Materials industry, which is below the industry midpoint. Overall, Afrimat has a GF Score™ of 71/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Afrimat's Gross Margin % compare to CRH and VMC?
According to the Building Materials industry distribution chart, Afrimat ranks #287 out of 395 companies for Gross Margin %. This places Afrimat in the lower half of its industry. The industry median Gross Margin % is 26.18. Afrimat's value of 15.18% is 42% below this benchmark. Historically, Afrimat's own Gross Margin % has ranged from 17.50 to 39.50 over the past decade. While the company's 10-year median is 33.22 vs. the industry median of 26.18, Afrimat 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 Building Materials company?
The median Gross Margin % among Building Materials companies is 26.18, based on 395 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. Afrimat's current Gross Margin % of 15.18% is 42% 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 Afrimat and its competitors. For the Building Materials 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. Afrimat's current Gross Margin % is 15.18%, which is 54% below median its own 10-year median of 33.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Afrimat stock overvalued right now?
Based on GuruFocus' analysis, Afrimat (JSE:AFT) is currently considered Significantly Undervalued. The stock's GF Value™ is R97.08, compared to a current price of R27.33 — trading 71.8% below its estimated fair value. The current Gross Margin % is 15.18%, which is 54% below median its 10-year median of 33.22 and 42% below the Building Materials industry median of 26.18. Afrimat's overall GF Score™ is 71/100 with 6 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 Afrimat (JSE:AFT), the current Gross Margin % is 15.18% as of Feb. 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 Afrimat (JSE:AFT) Overvalued in 2026?
Based on GuruFocus' analysis, Afrimat stock appears to be undervalued.
The current stock price of R27.33 is trading 71.8% below its estimated GF Value™ of R97.08.
GuruFocus considers Afrimat to be Significantly Undervalued.
Key valuation signals for JSE:AFT:
Gross Margin %: 15.18% (54% below median its 10-year median of 33.22)
GF Value™: R97.08 vs. price of R27.33 (71.8% below fair value)
Industry Position: 42% below the Building Materials median (#287 of 395)
No single metric tells the full story. See the JSE:AFT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Afrimat Ltd is a South Africa-based company. It has five segment Construction Materials, Industrial Minerals, Bulk Commodities, Future Materials and Metals, and Services. The company generates majority of revenue from Construction Materials comprises two distinct product segments: Aggregates and Cement. Aggregates include the sale of sand, gravel, crushed stone, and concrete-based products. Concrete-based products are produced using rock, sand, water, cement, and readymix concrete are typically used in various construction applications. The segment also includes the processing and sale of fly-ash, a by-product used to enhance concrete performance. Cement consists of the manufacturing and supply of cement. The Group views the entire southern African region as a single geographical area.
71GF Score
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