ArborGen HoldingsNZSE:ARB Gross Margin % is 21.31% as of Mar. 2026, which is 37% below its 10-year median of 33.96. The stock has 5 warning signs investors should review. Among 279 Forest Products companies, ArborGen Holdings ranks better than 66.31% 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
ArborGen Holdings had a gross margin of 21.31% 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.
ArborGen Holdings Gross Margin % Related Terms
ArborGen Holdings Gross Margin % Historical Data
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The historical data trend for ArborGen Holdings'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.
NZSE:ARB vs SSD, UFPI, BCC: Gross Margin % Comparison
For the Lumber & Wood Production subindustry, ArborGen Holdings'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.
ArborGen Holdings Gross Margin % vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, ArborGen Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where ArborGen Holdings'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.
ArborGen Holdings (NZSE:ARB) has a Gross Margin % of 21.31% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on ArborGen Holdings and its competitors. This is 37% below median its historical median of 33.96. Over the past decade, ArborGen Holdings' Gross Margin % has ranged from 24.63 to 76.68. According to the industry distribution chart, ArborGen Holdings ranks #94 out of 279 companies in the Forest Products industry, placing it in the top 33.7%.
Is ArborGen Holdings' Gross Margin % too high?
ArborGen Holdings' current Gross Margin % of 21.31% is 37% below median its 10-year median of 33.96. Over the past 10 years, this metric has ranged from a low of 24.63 to a high of 76.68. The Forest Products industry median Gross Margin % is 19.05. ArborGen Holdings' value of 21.31% is 11.9% above this industry median. Based on the distribution chart, ArborGen Holdings ranks #94 out of 279 companies in the Forest Products industry, which is above the industry midpoint.
How does ArborGen Holdings' Gross Margin % compare to SSD and UFPI?
According to the Forest Products industry distribution chart, ArborGen Holdings ranks #94 out of 279 companies for Gross Margin %. This puts ArborGen Holdings in the upper half of its industry. The industry median Gross Margin % is 19.05. ArborGen Holdings' value of 21.31% is 11.9% above this benchmark. Historically, ArborGen Holdings' own Gross Margin % has ranged from 24.63 to 76.68 over the past decade. While the company's 10-year median is 33.96 vs. the industry median of 19.05, ArborGen Holdings 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 Forest Products company?
The median Gross Margin % among Forest Products companies is 19.05, based on 279 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. ArborGen Holdings's current Gross Margin % of 21.31% is 11.9% 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 ArborGen Holdings and its competitors. For the Forest Products industry, the median Gross Margin % is 19.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ArborGen Holdings's current Gross Margin % is 21.31%, which is 37% below median its own 10-year median of 33.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ArborGen Holdings stock overvalued right now?
Based on GuruFocus' analysis, ArborGen Holdings (NZSE:ARB) is currently considered Possible Value Trap. The stock's GF Value™ is NZ$0.16, compared to a current price of NZ$0.07 — trading 56.3% below its estimated fair value. The current Gross Margin % is 21.31%, which is 37% below median its 10-year median of 33.96 and 11.9% above the Forest Products industry median of 19.05. 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 ArborGen Holdings (NZSE:ARB), the current Gross Margin % is 21.31% 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.
ArborGen Holdings Ltd is a producer of tree seedling products and a provider of conventional and technology-enhanced seedlings to the forestry industry. Seedlings are sold to landowners and managers. The Company has one reportable segment, being forestry genetics. The Company's revenues are earned from the sale of seedlings or tree stocks and logistics services to customers. The firm focuses on loblolly pine, radiata pine, and eucalyptus.
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