Ali Alghanim Sons Automotive Co KSC (KUW:ALG) 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
Ali Alghanim Sons Automotive Co KSC had a gross margin of 22.44% 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.
Ali Alghanim Sons Automotive Co KSC Gross Margin % Related Terms
Ali Alghanim Sons Automotive Co KSC 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.
Ali Alghanim Sons Automotive Co KSC Gross Margin % Chart
Ali Alghanim Sons Automotive Co KSC Annual Data
Trend
Dec21
Dec22
Dec23
Dec24
Dec25
Gross Margin %
21.08
23.19
24.89
24.49
23.46
Ali Alghanim Sons Automotive Co KSC Quarterly Data
KUW:ALG vs CVNA, PAG, ALTB: Gross Margin % Comparison
For the Auto & Truck Dealerships subindustry, Ali Alghanim Sons Automotive Co KSC'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.
Ali Alghanim Sons Automotive Co KSC Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Ali Alghanim Sons Automotive Co KSC's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ali Alghanim Sons Automotive Co KSC'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.
Ali Alghanim Sons Automotive Co KSC (KUW:ALG) has a Gross Margin % of 22.44% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Ali Alghanim Sons Automotive Co KSC and its competitors. This is near median its historical median of 23.46. Over the past decade, Ali Alghanim Sons Automotive Co KSC's Gross Margin % has ranged from 21.08 to 24.89. According to the industry distribution chart, Ali Alghanim Sons Automotive Co KSC ranks #502 out of 1310 companies in the Vehicles & Parts industry, placing it in the top 38.3%.
Is Ali Alghanim Sons Automotive Co KSC's Gross Margin % too high?
Ali Alghanim Sons Automotive Co KSC's current Gross Margin % of 22.44% is near median its 10-year median of 23.46. Over the past 10 years, this metric has ranged from a low of 21.08 to a high of 24.89. The Vehicles & Parts industry median Gross Margin % is 19.84. Ali Alghanim Sons Automotive Co KSC's value of 22.44% is 13.1% above this industry median. Based on the distribution chart, Ali Alghanim Sons Automotive Co KSC ranks #502 out of 1310 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Ali Alghanim Sons Automotive Co KSC has a GF Score™ of 23/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Ali Alghanim Sons Automotive Co KSC's Gross Margin % compare to CVNA and PAG?
According to the Vehicles & Parts industry distribution chart, Ali Alghanim Sons Automotive Co KSC ranks #502 out of 1310 companies for Gross Margin %. This puts Ali Alghanim Sons Automotive Co KSC in the upper half of its industry. The industry median Gross Margin % is 19.84. Ali Alghanim Sons Automotive Co KSC's value of 22.44% is 13.1% above this benchmark. Historically, Ali Alghanim Sons Automotive Co KSC's own Gross Margin % has ranged from 21.08 to 24.89 over the past decade. While the company's 10-year median is 23.46 vs. the industry median of 19.84, Ali Alghanim Sons Automotive Co KSC 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 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. Ali Alghanim Sons Automotive Co KSC's current Gross Margin % of 22.44% is 13.1% 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 Ali Alghanim Sons Automotive Co KSC 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. Ali Alghanim Sons Automotive Co KSC's current Gross Margin % is 22.44%, which is near median its own 10-year median of 23.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ali Alghanim Sons Automotive Co KSC stock overvalued right now?
Based on GuruFocus' analysis, Ali Alghanim Sons Automotive Co KSC (KUW:ALG) is currently considered Fairly Valued. The stock's GF Value™ is KWD0.95, compared to a current price of KWD0.88 — trading 7.6% below its estimated fair value. The current Gross Margin % is 22.44%, which is near median its 10-year median of 23.46 and 13.1% above the Vehicles & Parts industry median of 19.84. Ali Alghanim Sons Automotive Co KSC's overall GF Score™ is 23/100 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 Ali Alghanim Sons Automotive Co KSC (KUW:ALG), the current Gross Margin % is 22.44% 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 Ali Alghanim Sons Automotive Co KSC (KUW:ALG) Overvalued in 2026?
Based on GuruFocus' analysis, Ali Alghanim Sons Automotive Co KSC stock appears to be undervalued.
The current stock price of KWD0.88 is trading 7.6% below its estimated GF Value™ of KWD0.95.
GuruFocus considers Ali Alghanim Sons Automotive Co KSC to be Fairly Valued.
Key valuation signals for KUW:ALG:
Gross Margin %: 22.44% (near median its 10-year median of 23.46)
GF Value™: KWD0.95 vs. price of KWD0.88 (7.6% below fair value)
Industry Position: 13.1% above the Vehicles & Parts median (#502 of 1310)
No single metric tells the full story. See the KUW:ALG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ali Alghanim Sons Automotive Co KSC Business Description
Ali Alghanim Sons Automotive Co KSC is engaged in the automotive business, with activities including the sale and purchase of cars and spare parts, import and export of light and heavy vehicles, car rental services, maintenance of vehicles, trading of auto spare parts, and equipment rental and maintenance. The Group operates across three geographical segments, namely the State of Kuwait, Iraq, and the United Arab Emirates, with the State of Kuwait contributing the majority of its revenue.
23GF Score
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