Merafe ResourcesMERFF 64 Gross Margin % is 97.09% as of Dec. 2025, which is 1% above its 10-year median of 96.17. GuruFocus rates MERFF with a GF Score™ of 64/100 and a GF Value™ of $0.17. The stock has 9 warning signs investors should review. Among 729 Metals & Mining companies, Merafe Resources ranks better than 97.26% on this metric.
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
Merafe Resources had a gross margin of 97.09% for the quarter that ended in Dec. 2025 => 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.
Merafe Resources Gross Margin % Related Terms
Merafe Resources Gross Margin % Historical Data
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The historical data trend for Merafe Resources'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.
For the Other Industrial Metals & Mining subindustry, Merafe Resources'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.
Merafe Resources Gross Margin % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Merafe Resources's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Merafe Resources'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.
Merafe Resources (MERFF) has a Gross Margin % of 97.09% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Merafe Resources and its competitors. This is near median its historical median of 96.17. Over the past decade, Merafe Resources' Gross Margin % has ranged from 91.31 to 98.62. According to the industry distribution chart, Merafe Resources ranks #20 out of 729 companies in the Metals & Mining industry, placing it in the top 2.7%.
Is Merafe Resources' Gross Margin % too high?
Merafe Resources' current Gross Margin % of 97.09% is near median its 10-year median of 96.17. Over the past 10 years, this metric has ranged from a low of 91.31 to a high of 98.62. The Metals & Mining industry median Gross Margin % is 26.20. Merafe Resources' value of 97.09% is 270.6% above this industry median. Based on the distribution chart, Merafe Resources ranks #20 out of 729 companies in the Metals & Mining industry, which is in the top quartile — a strong position relative to peers. Overall, Merafe Resources has a GF Score™ of 64/100, reflecting its overall financial health beyond just this single metric.
How does Merafe Resources' Gross Margin % compare to competitors?
According to the Metals & Mining industry distribution chart, Merafe Resources ranks #20 out of 729 companies for Gross Margin %. This places Merafe Resources in the top 3% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 26.20. Merafe Resources' value of 97.09% is 270.6% above this benchmark. Historically, Merafe Resources' own Gross Margin % has ranged from 91.31 to 98.62 over the past decade. While the company's 10-year median is 96.17 vs. the industry median of 26.20, Merafe Resources 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 Metals & Mining company?
The median Gross Margin % among Metals & Mining companies is 26.20, based on 729 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. Merafe Resources's current Gross Margin % of 97.09% is 270.6% 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 Merafe Resources and its competitors. For the Metals & Mining industry, the median Gross Margin % is 26.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Merafe Resources's current Gross Margin % is 97.09%, which is near median its own 10-year median of 96.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Merafe Resources stock overvalued right now?
Merafe Resources (MERFF) has a current Gross Margin % of 97.09%. The stock's GF Value™ is $0.17, compared to a current price of $0.22 — trading 28.1% above its estimated fair value. The current Gross Margin % is 97.09%, which is near median its 10-year median of 96.17 and 270.6% above the Metals & Mining industry median of 26.20. Merafe Resources' overall GF Score™ is 64/100 with 9 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 Merafe Resources (MERFF), the current Gross Margin % is 97.09% as of Dec. 2025. 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 Merafe Resources (MERFF) Overvalued in 2026?
Based on GuruFocus' analysis, Merafe Resources stock appears to be overvalued.
The current stock price of $0.22 is trading 28.1% above its estimated GF Value™ of $0.17.
Key valuation signals for MERFF:
Gross Margin %: 97.09% (near median its 10-year median of 96.17)
GF Value™: $0.17 vs. price of $0.22 (28.1% above fair value)
Industry Position: 270.6% above the Metals & Mining median (#20 of 729)
No single metric tells the full story. See the MERFF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Merafe Resources Ltd through its wholly-owned subsidiary, Merafe Ferrochrome and Mining Proprietary Limited, participates in chrome mining and the beneficiation of chrome ore into ferrochrome. The Glencore-Merafe Chrome Venture (Venture) operates five ferrochrome smelters, twenty-two ferrochrome furnaces, and nine mines, situated in the North-West, Limpopo, and Mpumalanga provinces of South Africa. The company has operating mines namel Marikana West; and Kroondal Gemini. The Group has one reportable segment being the mining and beneficiation of chrome ore into ferrochrome and associated minerals. Geographically, it has its presence in Africa, Americas, Asia, China, Indonesia, Other Asia, and Europe.
64GF Score
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