African Media EntertainmentJSE:AME 83 Gross Margin % is 63.95% as of Mar. 2026, which is 12% below its 10-year median of 72.58. GuruFocus rates JSE:AME with a GF Score™ of 83/100 and a GF Value™ of R48.51 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 946 Media - Diversified companies, African Media Entertainment ranks better than 80.87% on this metric.
African Media Entertainment (JSE:AME) 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
African Media Entertainment had a gross margin of 63.95% for the quarter that ended in Mar. 2026 => Durable 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.
African Media Entertainment Gross Margin % Related Terms
African Media Entertainment 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 Broadcasting subindustry, African Media Entertainment'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.
African Media Entertainment Gross Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, African Media Entertainment's Gross Margin % distribution charts can be found below:
* The bar in red indicates where African Media Entertainment'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.
African Media Entertainment (JSE:AME) has a Gross Margin % of 63.95% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on African Media Entertainment and its competitors. This is 12% below median its historical median of 72.58. Over the past decade, African Media Entertainment's Gross Margin % has ranged from 69.20 to 79.10. According to the industry distribution chart, African Media Entertainment ranks #181 out of 946 companies in the Media - Diversified industry, placing it in the top 19.1%.
Is African Media Entertainment's Gross Margin % too high?
African Media Entertainment's current Gross Margin % of 63.95% is 12% below median its 10-year median of 72.58. Over the past 10 years, this metric has ranged from a low of 69.20 to a high of 79.10. The Media - Diversified industry median Gross Margin % is 38.91. African Media Entertainment's value of 63.95% is 64.4% above this industry median. Based on the distribution chart, African Media Entertainment ranks #181 out of 946 companies in the Media - Diversified industry, which is in the top quartile — a strong position relative to peers. Overall, African Media Entertainment has a GF Score™ of 83/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does African Media Entertainment's Gross Margin % compare to NXST?
According to the Media - Diversified industry distribution chart, African Media Entertainment ranks #181 out of 946 companies for Gross Margin %. This places African Media Entertainment in the top 19% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 38.91. African Media Entertainment's value of 63.95% is 64.4% above this benchmark. Historically, African Media Entertainment's own Gross Margin % has ranged from 69.20 to 79.10 over the past decade. While the company's 10-year median is 72.58 vs. the industry median of 38.91, African Media Entertainment 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 Media - Diversified company?
The median Gross Margin % among Media - Diversified companies is 38.91, based on 946 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. African Media Entertainment's current Gross Margin % of 63.95% is 64.4% 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 African Media Entertainment and its competitors. For the Media - Diversified industry, the median Gross Margin % is 38.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. African Media Entertainment's current Gross Margin % is 63.95%, which is 12% below median its own 10-year median of 72.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is African Media Entertainment stock overvalued right now?
Based on GuruFocus' analysis, African Media Entertainment (JSE:AME) is currently considered Modestly Overvalued. The stock's GF Value™ is R48.51, compared to a current price of R55.00 — trading 13.4% above its estimated fair value. The current Gross Margin % is 63.95%, which is 12% below median its 10-year median of 72.58 and 64.4% above the Media - Diversified industry median of 38.91. African Media Entertainment's overall GF Score™ is 83/100 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 African Media Entertainment (JSE:AME), the current Gross Margin % is 63.95% 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 African Media Entertainment (JSE:AME) Overvalued in 2026?
Based on GuruFocus' analysis, African Media Entertainment stock appears to be overvalued.
The current stock price of R55.00 is trading 13.4% above its estimated GF Value™ of R48.51.
GuruFocus considers African Media Entertainment to be Modestly Overvalued.
Key valuation signals for JSE:AME:
Gross Margin %: 63.95% (12% below median its 10-year median of 72.58)
GF Value™: R48.51 vs. price of R55.00 (13.4% above fair value)
Industry Position: 64.4% above the Media - Diversified median (#181 of 946)
No single metric tells the full story. See the JSE:AME stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
African Media Entertainment Ltd is involved in providing broadcasting services in South Africa. The company's operating segment includes Radio broadcasters; Media Services and Corporate. It generates maximum revenue from the Radio broadcasters segment.
83GF Score
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