Royalty Management HoldingRMCO -2.21%28 Gross Margin % is 12.78% as of Mar. 2026, which is 87% below its 10-year median of 96.84. GuruFocus rates RMCO with a GF Score™ of 28/100 and a GF Value™ of $8.01 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 548 Asset Management companies, Royalty Management Holding ranks worse than 85.58% 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
Royalty Management Holding had a gross margin of 12.78% 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.
Royalty Management Holding Gross Margin % Related Terms
Royalty Management Holding Gross Margin % Historical Data
* 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 Asset Management subindustry, Royalty Management Holding'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.
Royalty Management Holding Gross Margin % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Royalty Management Holding's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Royalty Management Holding'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.
Royalty Management Holding (RMCO) has a Gross Margin % of 12.78% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Royalty Management Holding and its competitors. This is 87% below median its historical median of 96.84. Over the past decade, Royalty Management Holding's Gross Margin % has ranged from 13.33 to 97.21. According to the industry distribution chart, Royalty Management Holding ranks #469 out of 548 companies in the Asset Management industry, placing it in the top 85.6%.
Is Royalty Management Holding's Gross Margin % too high?
Royalty Management Holding's current Gross Margin % of 12.78% is 87% below median its 10-year median of 96.84. Over the past 10 years, this metric has ranged from a low of 13.33 to a high of 97.21. The Asset Management industry median Gross Margin % is 57.90. Royalty Management Holding's value of 12.78% is 77.9% below this industry median. Based on the distribution chart, Royalty Management Holding ranks #469 out of 548 companies in the Asset Management industry, which is in the bottom quartile relative to peers. Overall, Royalty Management Holding has a GF Score™ of 28/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Royalty Management Holding's Gross Margin % compare to OFS and MLCI?
According to the Asset Management industry distribution chart, Royalty Management Holding ranks #469 out of 548 companies for Gross Margin %. This places Royalty Management Holding in the lower half of its industry. The industry median Gross Margin % is 57.90. Royalty Management Holding's value of 12.78% is 77.9% below this benchmark. Historically, Royalty Management Holding's own Gross Margin % has ranged from 13.33 to 97.21 over the past decade. While the company's 10-year median is 96.84 vs. the industry median of 57.90, Royalty Management Holding 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 an Asset Management company?
The median Gross Margin % among Asset Management companies is 57.90, based on 548 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. Royalty Management Holding's current Gross Margin % of 12.78% is 77.9% 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 Royalty Management Holding and its competitors. For the Asset Management industry, the median Gross Margin % is 57.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Royalty Management Holding's current Gross Margin % is 12.78%, which is 87% below median its own 10-year median of 96.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Royalty Management Holding stock overvalued right now?
Based on GuruFocus' analysis, Royalty Management Holding (RMCO) is currently considered Possible Value Trap. The stock's GF Value™ is $8.01, compared to a current price of $2.65 — trading 66.9% below its estimated fair value. The current Gross Margin % is 12.78%, which is 87% below median its 10-year median of 96.84 and 77.9% below the Asset Management industry median of 57.90. Royalty Management Holding's overall GF Score™ is 28/100 with 3 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 Royalty Management Holding (RMCO), the current Gross Margin % is 12.78% 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 Royalty Management Holding (RMCO) Overvalued in 2026?
Based on GuruFocus' analysis, Royalty Management Holding stock appears to be undervalued.
The current stock price of $2.65 is trading 66.9% below its estimated GF Value™ of $8.01.
GuruFocus considers Royalty Management Holding to be Possible Value Trap.
Key valuation signals for RMCO:
Gross Margin %: 12.78% (87% below median its 10-year median of 96.84)
GF Value™: $8.01 vs. price of $2.65 (66.9% below fair value)
Industry Position: 77.9% below the Asset Management median (#469 of 548)
No single metric tells the full story. See the RMCO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Royalty Management Holding Corp is formed to invest or purchase assets that have near and medium-term income potential to provide RMC with accretive cash flow from which it can reinvest in new assets or expand cash flow from those existing assets. These assets typically are natural resources assets (including real estate and mining permits), patents, intellectual property, and emerging technologies.
28GF Score
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