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
Rivian Automotive had a gross margin of 8.62% 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.
Rivian Automotive Gross Margin % Related Terms
Rivian Automotive Gross Margin % Historical Data
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The historical data trend for Rivian Automotive'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 Auto Manufacturers subindustry, Rivian Automotive'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.
Rivian Automotive Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Rivian Automotive's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Rivian Automotive'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.
Rivian Automotive (RIVN) has a Gross Margin % of 8.62% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Rivian Automotive and its competitors. According to the industry distribution chart, Rivian Automotive ranks #1282 out of 1313 companies in the Vehicles & Parts industry, placing it in the top 97.6%.
Is Rivian Automotive's Gross Margin % too high?
Rivian Automotive's current Gross Margin % is 8.62%. The Vehicles & Parts industry median Gross Margin % is 19.84. Rivian Automotive's value of 8.62% is 56.6% below this industry median. Based on the distribution chart, Rivian Automotive ranks #1282 out of 1313 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, Rivian Automotive has a GF Score™ of 49/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Rivian Automotive's Gross Margin % compare to XPEV and LI?
According to the Vehicles & Parts industry distribution chart, Rivian Automotive ranks #1282 out of 1313 companies for Gross Margin %. This places Rivian Automotive in the lower half of its industry. The industry median Gross Margin % is 19.84. Rivian Automotive's value of 8.62% is 56.6% below this benchmark. 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 Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.84, based on 1,313 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. Rivian Automotive's current Gross Margin % of 8.62% is 56.6% 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 Rivian Automotive and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rivian Automotive's current Gross Margin % is 8.62%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rivian Automotive stock overvalued right now?
Based on GuruFocus' analysis, Rivian Automotive (RIVN) is currently considered Fairly Valued. The stock's GF Value™ is $14.46, compared to a current price of $15.63 — trading 8.1% above its estimated fair value. The current Gross Margin % is 8.62% and 56.6% below the Vehicles & Parts industry median of 19.84. Rivian Automotive's overall GF Score™ is 49/100 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 Rivian Automotive (RIVN), the current Gross Margin % is 8.62% 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.
Is Rivian Automotive (RIVN) Overvalued in 2026?
Based on GuruFocus' analysis, Rivian Automotive stock appears to be overvalued.
The current stock price of $15.63 is trading 8.1% above its estimated GF Value™ of $14.46.
GuruFocus considers Rivian Automotive to be Fairly Valued.
Key valuation signals for RIVN:
Gross Margin %: 8.62%
GF Value™: $14.46 vs. price of $15.63 (8.1% above fair value)
Industry Position: 56.6% below the Vehicles & Parts median (#1282 of 1313)
No single metric tells the full story. See the RIVN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rivian is a battery electric vehicle automaker that sells its vehicles in the US and Canada. The company also develops electronic control units and related software for autos in a joint venture with Volkswagen. Rivian has multiple vehicles in its fleet, which include a luxury truck and full-size SUV and a delivery van. The company plans to begin selling a midsize SUV in 2026. Total deliveries were over 42,000 in 2025. Rivian is also developing autonomous driving software to be used in its vehicles and for robotaxis on the Uber ride-hailing network.
49GF Score
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