Combined Motor HoldingsJSE:CMH -0.46%92 Gross Margin % is 16.79% as of Feb. 2026, which is 3% below its 10-year median of 17.30. GuruFocus rates JSE:CMH with a GF Score™ of 92/100 and a GF Value™ of R38.80 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,310 Vehicles & Parts companies, Combined Motor Holdings ranks worse than 59.77% on this metric.
JSE:CMH's Gross Margin % is ranked worse than 59.77% of 1310
companies
in the Vehicles & Parts industry
Industry Median: 19.835
vs JSE:CMH: 17.21
Combined Motor Holdings had a gross margin of 16.79% for the quarter that ended in Feb. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Combined Motor Holdings was -0.10% per year.
Combined Motor Holdings (JSE:CMH) 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
Combined Motor Holdings had a gross margin of 16.79% 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.
Combined Motor Holdings Gross Margin % Related Terms
Combined Motor Holdings 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.
JSE:CMH vs CVNA, PAG, ALTB: Gross Margin % Comparison
For the Auto & Truck Dealerships subindustry, Combined Motor Holdings'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.
Combined Motor Holdings Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Combined Motor Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Combined Motor Holdings'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.
Combined Motor Holdings (JSE:CMH) has a Gross Margin % of 16.79% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Combined Motor Holdings and its competitors. This is near median its historical median of 17.30. Over the past decade, Combined Motor Holdings' Gross Margin % has ranged from 16.36 to 19.67. According to the industry distribution chart, Combined Motor Holdings ranks #783 out of 1310 companies in the Vehicles & Parts industry, placing it in the top 59.8%.
Is Combined Motor Holdings' Gross Margin % too high?
Combined Motor Holdings' current Gross Margin % of 16.79% is near median its 10-year median of 17.30. Over the past 10 years, this metric has ranged from a low of 16.36 to a high of 19.67. The Vehicles & Parts industry median Gross Margin % is 19.84. Combined Motor Holdings' value of 16.79% is 15.4% below this industry median. Based on the distribution chart, Combined Motor Holdings ranks #783 out of 1310 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Combined Motor Holdings has a GF Score™ of 92/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Combined Motor Holdings' Gross Margin % compare to CVNA and PAG?
According to the Vehicles & Parts industry distribution chart, Combined Motor Holdings ranks #783 out of 1310 companies for Gross Margin %. This places Combined Motor Holdings in the lower half of its industry. The industry median Gross Margin % is 19.84. Combined Motor Holdings' value of 16.79% is 15.4% below this benchmark. Historically, Combined Motor Holdings' own Gross Margin % has ranged from 16.36 to 19.67 over the past decade. While the company's 10-year median is 17.30 vs. the industry median of 19.84, Combined Motor Holdings 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. Combined Motor Holdings's current Gross Margin % of 16.79% is 15.4% 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 Combined Motor Holdings 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. Combined Motor Holdings's current Gross Margin % is 16.79%, which is near median its own 10-year median of 17.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Combined Motor Holdings stock overvalued right now?
Based on GuruFocus' analysis, Combined Motor Holdings (JSE:CMH) is currently considered Fairly Valued. The stock's GF Value™ is R38.80, compared to a current price of R39.29 — trading 1.3% above its estimated fair value. The current Gross Margin % is 16.79%, which is near median its 10-year median of 17.30 and 15.4% below the Vehicles & Parts industry median of 19.84. Combined Motor Holdings' overall GF Score™ is 92/100 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 Combined Motor Holdings (JSE:CMH), the current Gross Margin % is 16.79% 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 Combined Motor Holdings (JSE:CMH) Overvalued in 2026?
Based on GuruFocus' analysis, Combined Motor Holdings stock appears to be overvalued.
The current stock price of R39.29 is trading 1.3% above its estimated GF Value™ of R38.80.
GuruFocus considers Combined Motor Holdings to be Fairly Valued.
Key valuation signals for JSE:CMH:
Gross Margin %: 16.79% (near median its 10-year median of 17.30)
GF Value™: R38.80 vs. price of R39.29 (1.3% above fair value)
Industry Position: 15.4% below the Vehicles & Parts median (#783 of 1310)
No single metric tells the full story. See the JSE:CMH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Combined Motor Holdings Ltd is a South Africa-based investment holding company engaged in motor retail and distribution, car hire, and financial services. The Company operates through four business segments: Motor Retail and Distribution, which generates maximum revenue and covers passenger, light commercial, and heavy commercial vehicles in both the volume and luxury categories; Car Hire, which offers a range of well-maintained vehicles for short- and long-term hire; Financial Services, which provides insurance underwriting facilities for products sold with new and used vehicles, including coverage for death, disability, dread disease, retrenchment, vehicle and component warranties, and vehicle financing through joint ventures with two finance houses; and Corporate Services and Other.
92GF Score
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