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East West Agro AB had a gross margin of 23.98% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for East West Agro AB was 5.10% per year.
East West Agro AB (OVSE:EWA1L) 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
East West Agro AB had a gross margin of 23.98% for the quarter that ended in Dec. 2025 => 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.
East West Agro AB Gross Margin % Related Terms
East West Agro AB Gross Margin % Historical Data
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The historical data trend for East West Agro AB'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.
OVSE:EWA1L vs CAT, DE, PCAR: Gross Margin % Comparison
For the Farm & Heavy Construction Machinery subindustry, East West Agro AB'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.
East West Agro AB Gross Margin % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, East West Agro AB's Gross Margin % distribution charts can be found below:
* The bar in red indicates where East West Agro AB'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.
East West Agro AB (OVSE:EWA1L) has a Gross Margin % of 23.98% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on East West Agro AB and its competitors. This is 32% above median its historical median of 18.23. Over the past decade, East West Agro AB's Gross Margin % has ranged from 16.64 to 21.65.
Is East West Agro AB's Gross Margin % too high?
East West Agro AB's current Gross Margin % of 23.98% is 32% above median its 10-year median of 18.23. Over the past 10 years, this metric has ranged from a low of 16.64 to a high of 21.65. The Farm & Heavy Construction Machinery industry median Gross Margin % is 25.62. East West Agro AB's value of 23.98% is 6.4% below this industry median. Overall, East West Agro AB has a GF Score™ of 15/100, reflecting its overall financial health beyond just this single metric.
How does East West Agro AB's Gross Margin % compare to CAT and DE?
East West Agro AB's Gross Margin % of 23.98% can be compared against companies in the Farm & Heavy Construction Machinery industry. The industry median Gross Margin % is 25.62. East West Agro AB's value of 23.98% is 6.4% below this benchmark. Historically, East West Agro AB's own Gross Margin % has ranged from 16.64 to 21.65 over the past decade. While the company's 10-year median is 18.23 vs. the industry median of 25.62, East West Agro AB 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 Farm & Heavy Construction Machinery company?
The median Gross Margin % among Farm & Heavy Construction Machinery companies is 25.62, based on 210 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. East West Agro AB's current Gross Margin % of 23.98% is 6.4% 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 East West Agro AB and its competitors. For the Farm & Heavy Construction Machinery industry, the median Gross Margin % is 25.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. East West Agro AB's current Gross Margin % is 23.98%, which is 32% above median its own 10-year median of 18.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is East West Agro AB stock overvalued right now?
East West Agro AB (OVSE:EWA1L) has a current Gross Margin % of 23.98%. The stock's GF Value™ is €13.74, compared to a current price of €15.60 — trading 13.5% above its estimated fair value. The current Gross Margin % is 23.98%, which is 32% above median its 10-year median of 18.23 and 6.4% below the Farm & Heavy Construction Machinery industry median of 25.62. East West Agro AB's overall GF Score™ is 15/100 with 6 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 East West Agro AB (OVSE:EWA1L), the current Gross Margin % is 23.98% 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 East West Agro AB (OVSE:EWA1L) Overvalued in 2026?
Based on GuruFocus' analysis, East West Agro AB stock appears to be overvalued.
The current stock price of €15.60 is trading 13.5% above its estimated GF Value™ of €13.74.
Key valuation signals for OVSE:EWA1L:
Gross Margin %: 23.98% (32% above median its 10-year median of 18.23)
GF Value™: €13.74 vs. price of €15.60 (13.5% above fair value)
Industry Position: 6.4% below the Farm & Heavy Construction Machinery median
No single metric tells the full story. See the OVSE:EWA1L stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
East West Agro AB is a wholesale and retail in agricultural machinery and spare parts for agricultural machinery. The company is engaged in the manufacturing of agricultural machinery and spare parts of agricultural machinery, such as tractors, harvesters, mowers, cultivators, compaction rollers, fertilizer equipment, and tractor accessories, among others.
15GF Score
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