USA Rare EarthMEX:USAR -3.31%12 Gross Margin % is 1.86% as of Mar. 2026, which is 84% below its 10-year median of 11.87. GuruFocus rates MEX:USAR with a GF Score™ of 12/100. The stock has 2 warning signs investors should review. Among 730 Metals & Mining companies, USA Rare Earth ranks worse than 52.47% on this metric.
The historical rank and industry rank for USA Rare Earth's Gross Margin % or its related term are showing as below:
MEX:USAR'
s Gross Margin % Range Over the Past 10 Years
Min: 11.87 Med: 11.87 Max: 23.83
Current: 23.83
During the past 4 years, the highestGross Margin % of USA Rare Earth was 23.83%. The lowest was 11.87%. And the median was 11.87%.
MEX:USAR's Gross Margin % is ranked worse than 52.47% of 730
companies
in the Metals & Mining industry
Industry Median: 26.175
vs MEX:USAR: 23.83
USA Rare Earth had a gross margin of 1.86% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for USA Rare Earth was 0.00% per year.
USA Rare Earth (MEX:USAR) 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
USA Rare Earth had a gross margin of 1.86% for the quarter that ended in Mar. 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.
USA Rare Earth Gross Margin % Related Terms
USA Rare Earth Gross Margin % Historical Data
* Premium members only.
The historical data trend for USA Rare Earth'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.
MEX:USAR vs MTRN, EMAT, TMC: Gross Margin % Comparison
For the Other Industrial Metals & Mining subindustry, USA Rare Earth'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.
USA Rare Earth Gross Margin % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, USA Rare Earth's Gross Margin % distribution charts can be found below:
* The bar in red indicates where USA Rare Earth'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.
USA Rare Earth (MEX:USAR) has a Gross Margin % of 1.86% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on USA Rare Earth and its competitors. This is 84% below median its historical median of 11.87. Over the past decade, USA Rare Earth's Gross Margin % has ranged from 11.87 to 23.83. According to the industry distribution chart, USA Rare Earth ranks #383 out of 730 companies in the Metals & Mining industry, placing it in the top 52.5%.
Is USA Rare Earth's Gross Margin % too high?
USA Rare Earth's current Gross Margin % of 1.86% is 84% below median its 10-year median of 11.87. Over the past 10 years, this metric has ranged from a low of 11.87 to a high of 23.83. The Metals & Mining industry median Gross Margin % is 26.18. USA Rare Earth's value of 1.86% is 92.9% below this industry median. Based on the distribution chart, USA Rare Earth ranks #383 out of 730 companies in the Metals & Mining industry, which is below the industry midpoint. Overall, USA Rare Earth has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does USA Rare Earth's Gross Margin % compare to MTRN and EMAT?
According to the Metals & Mining industry distribution chart, USA Rare Earth ranks #383 out of 730 companies for Gross Margin %. This places USA Rare Earth in the lower half of its industry. The industry median Gross Margin % is 26.18. USA Rare Earth's value of 1.86% is 92.9% below this benchmark. Historically, USA Rare Earth's own Gross Margin % has ranged from 11.87 to 23.83 over the past decade. While the company's 10-year median is 11.87 vs. the industry median of 26.18, USA Rare Earth 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 Metals & Mining company?
The median Gross Margin % among Metals & Mining companies is 26.18, based on 730 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. USA Rare Earth's current Gross Margin % of 1.86% is 92.9% 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 USA Rare Earth and its competitors. For the Metals & Mining industry, the median Gross Margin % is 26.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. USA Rare Earth's current Gross Margin % is 1.86%, which is 84% below median its own 10-year median of 11.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is USA Rare Earth stock overvalued right now?
USA Rare Earth (MEX:USAR) has a current Gross Margin % of 1.86%. The current Gross Margin % is 1.86%, which is 84% below median its 10-year median of 11.87 and 92.9% below the Metals & Mining industry median of 26.18. USA Rare Earth's overall GF Score™ is 12/100 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 USA Rare Earth (MEX:USAR), the current Gross Margin % is 1.86% 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.
USA Rare Earth Inc is a vertically integrated, domestic rare earth magnet supply chain that supports the state of energy, mobility, and national security in the United States. USARE is developing an NdFeB magnet manufacturing plant in the United States, and establishing domestic rare earth and critical minerals supply, extraction, and processing capabilities to both supply its manufacturing plant and market surplus materials to third parties. The company operates in a single reportable operating segment; that segment being the vertically integrated, domestic rare earth element magnet production supply chain. Geographically, it operates in United States, and International. It derives maximum revenue from International.
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