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
Loop Industries had a gross margin of N/A% 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.
Loop Industries Gross Margin % Related Terms
Loop Industries Gross Margin % Historical Data
* Premium members only.
The historical data trend for Loop Industries'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.
LOOP vs NTIC, FEAM, FSI: Gross Margin % Comparison
For the Specialty Chemicals subindustry, Loop Industries'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.
Loop Industries Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Loop Industries's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Loop Industries'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.
Loop Industries (LOOP) has a Gross Margin % of 0.00% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Loop Industries and its competitors. Over the past decade, Loop Industries' Gross Margin % has ranged from 25.88 to 98.00. According to the industry distribution chart, Loop Industries ranks #999999 out of 1564 companies in the Chemicals industry.
Is Loop Industries' Gross Margin % too high?
Loop Industries' current Gross Margin % is 0.00%. Over the past 10 years, this metric has ranged from a low of 25.88 to a high of 98.00. Based on the distribution chart, Loop Industries ranks #999999 out of 1564 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Loop Industries has a GF Score™ of 34/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Loop Industries' Gross Margin % compare to NTIC and FEAM?
According to the Chemicals industry distribution chart, Loop Industries ranks #999999 out of 1564 companies for Gross Margin %. This places Loop Industries in the lower half of its industry. The industry median Gross Margin % is 23.38. Historically, Loop Industries' own Gross Margin % has ranged from 25.88 to 98.00 over the past decade. 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 Chemicals company?
The median Gross Margin % among Chemicals companies is 23.38, based on 1,564 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. 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 Loop Industries and its competitors. For the Chemicals industry, the median Gross Margin % is 23.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Loop Industries's current Gross Margin % is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Loop Industries stock overvalued right now?
Based on GuruFocus' analysis, Loop Industries (LOOP) is currently considered Possible Value Trap. The stock's GF Value™ is $7.04, compared to a current price of $0.79 — trading 88.8% below its estimated fair value. The current Gross Margin % is 0.00%. Loop Industries' overall GF Score™ is 34/100 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 Loop Industries (LOOP), the current Gross Margin % is 0.00% 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 Loop Industries (LOOP) Overvalued in 2026?
Based on GuruFocus' analysis, Loop Industries stock appears to be undervalued.
The current stock price of $0.79 is trading 88.8% below its estimated GF Value™ of $7.04.
GuruFocus considers Loop Industries to be Possible Value Trap.
Key valuation signals for LOOP:
Gross Margin %: 0.00%
GF Value™: $7.04 vs. price of $0.79 (88.8% below fair value)
No single metric tells the full story. See the LOOP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Loop Industries Inc is a technology company whose mission is to accelerate the world's shift toward sustainable PET plastic and polyester fiber and away from dependence on fossil fuels. Loop Industries owns patented and proprietary technology that depolymerizes no and low-value waste PET plastic and polyester fiber, including plastic bottles, packaging, and textiles such as carpets and clothing, into its base building block monomers, DMT and MEG.
34GF Score
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