Labrador Iron Ore RoyaltyLIFZF -0.13%74 Gross Margin % is 80.18% as of Mar. 2026, which is 0% below its 10-year median of 80.19. GuruFocus rates LIFZF with a GF Score™ of 74/100 and a GF Value™ of $17.88 (Fairly Valued). The stock has 5 warning signs investors should review. Among 597 Steel companies, Labrador Iron Ore Royalty ranks better than 98.66% on this metric.
Labrador Iron Ore Royalty (OTCPK:LIFZF) 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
Labrador Iron Ore Royalty had a gross margin of 80.18% 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.
Labrador Iron Ore Royalty Gross Margin % Related Terms
Labrador Iron Ore Royalty 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 Steel subindustry, Labrador Iron Ore Royalty'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.
Labrador Iron Ore Royalty Gross Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Labrador Iron Ore Royalty's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Labrador Iron Ore Royalty'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.
Labrador Iron Ore Royalty (LIFZF) has a Gross Margin % of 80.18% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Labrador Iron Ore Royalty and its competitors. This is near median its historical median of 80.19. Over the past decade, Labrador Iron Ore Royalty's Gross Margin % has ranged from 80.12 to 80.31. According to the industry distribution chart, Labrador Iron Ore Royalty ranks #8 out of 597 companies in the Steel industry, placing it in the top 1.3%.
Is Labrador Iron Ore Royalty's Gross Margin % too high?
Labrador Iron Ore Royalty's current Gross Margin % of 80.18% is near median its 10-year median of 80.19. Over the past 10 years, this metric has ranged from a low of 80.12 to a high of 80.31. The Steel industry median Gross Margin % is 12.60. Labrador Iron Ore Royalty's value of 80.18% is 536.3% above this industry median. Based on the distribution chart, Labrador Iron Ore Royalty ranks #8 out of 597 companies in the Steel industry, which is in the top quartile — a strong position relative to peers. Overall, Labrador Iron Ore Royalty has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Labrador Iron Ore Royalty's Gross Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Labrador Iron Ore Royalty ranks #8 out of 597 companies for Gross Margin %. This places Labrador Iron Ore Royalty in the top 1% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 12.60. Labrador Iron Ore Royalty's value of 80.18% is 536.3% above this benchmark. Historically, Labrador Iron Ore Royalty's own Gross Margin % has ranged from 80.12 to 80.31 over the past decade. While the company's 10-year median is 80.19 vs. the industry median of 12.60, Labrador Iron Ore Royalty 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 Steel company?
The median Gross Margin % among Steel companies is 12.60, based on 597 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. Labrador Iron Ore Royalty's current Gross Margin % of 80.18% is 536.3% 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 Labrador Iron Ore Royalty and its competitors. For the Steel industry, the median Gross Margin % is 12.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Labrador Iron Ore Royalty's current Gross Margin % is 80.18%, which is near median its own 10-year median of 80.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Labrador Iron Ore Royalty stock overvalued right now?
Based on GuruFocus' analysis, Labrador Iron Ore Royalty (LIFZF) is currently considered Fairly Valued. The stock's GF Value™ is $17.88, compared to a current price of $19.99 — trading 11.8% above its estimated fair value. The current Gross Margin % is 80.18%, which is near median its 10-year median of 80.19 and 536.3% above the Steel industry median of 12.60. Labrador Iron Ore Royalty's overall GF Score™ is 74/100 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 Labrador Iron Ore Royalty (LIFZF), the current Gross Margin % is 80.18% 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 Labrador Iron Ore Royalty (LIFZF) Overvalued in 2026?
Based on GuruFocus' analysis, Labrador Iron Ore Royalty stock appears to be overvalued.
The current stock price of $19.99 is trading 11.8% above its estimated GF Value™ of $17.88.
GuruFocus considers Labrador Iron Ore Royalty to be Fairly Valued.
Key valuation signals for LIFZF:
Gross Margin %: 80.18% (near median its 10-year median of 80.19)
GF Value™: $17.88 vs. price of $19.99 (11.8% above fair value)
Industry Position: 536.3% above the Steel median (#8 of 597)
No single metric tells the full story. See the LIFZF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Labrador Iron Ore Royalty Corporation, along with its wholly owned subsidiary, holds approximately fifteen percent interest in Iron Ore Company of Canada (IOC), a North American producer and exporter of iron ore pellets and high-grade concentrate. The company receives approximately seven percent gross overriding royalty on all iron ore products produced, sold, and shipped by IOC and some cents per tonne commission on all iron ore products produced and sold by IOC from the leased lands. Under normal circumstances, Labrador Iron Ore Royalty Corporation pays cash dividends from the free cash flow generated from IOC to the maximum extent possible, subject to the maintenance of appropriate levels of working capital. The firm generates the majority of its revenue in the form of royalty income.
74GF Score
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