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
Avalon Advanced Materials had a gross margin of 34.34% for the quarter that ended in Feb. 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.
Avalon Advanced Materials Gross Margin % Related Terms
Avalon Advanced Materials 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 Other Industrial Metals & Mining subindustry, Avalon Advanced Materials'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.
Avalon Advanced Materials Gross Margin % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Avalon Advanced Materials's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Avalon Advanced Materials'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.
Avalon Advanced Materials (TSX:AVL) has a Gross Margin % of 34.34% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Avalon Advanced Materials and its competitors. According to the industry distribution chart, Avalon Advanced Materials ranks #694 out of 731 companies in the Metals & Mining industry, placing it in the top 94.9%.
Is Avalon Advanced Materials' Gross Margin % too high?
Avalon Advanced Materials' current Gross Margin % is 34.34%. The Metals & Mining industry median Gross Margin % is 26.20. Avalon Advanced Materials' value of 34.34% is 31.1% above this industry median. Based on the distribution chart, Avalon Advanced Materials ranks #694 out of 731 companies in the Metals & Mining industry, which is in the bottom quartile relative to peers. Overall, Avalon Advanced Materials has a GF Score™ of 56/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Avalon Advanced Materials' Gross Margin % compare to competitors?
According to the Metals & Mining industry distribution chart, Avalon Advanced Materials ranks #694 out of 731 companies for Gross Margin %. This places Avalon Advanced Materials in the lower half of its industry. The industry median Gross Margin % is 26.20. Avalon Advanced Materials' value of 34.34% is 31.1% above 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 Metals & Mining company?
The median Gross Margin % among Metals & Mining companies is 26.20, based on 731 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. Avalon Advanced Materials's current Gross Margin % of 34.34% is 31.1% 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 Avalon Advanced Materials and its competitors. For the Metals & Mining industry, the median Gross Margin % is 26.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Avalon Advanced Materials's current Gross Margin % is 34.34%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Avalon Advanced Materials stock overvalued right now?
Based on GuruFocus' analysis, Avalon Advanced Materials (TSX:AVL) is currently considered Possible Value Trap. The stock's GF Value™ is C$17.04, compared to a current price of C$9.00 — trading 47.2% below its estimated fair value. The current Gross Margin % is 34.34% and 31.1% above the Metals & Mining industry median of 26.20. Avalon Advanced Materials' overall GF Score™ is 56/100 with 5 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 Avalon Advanced Materials (TSX:AVL), the current Gross Margin % is 34.34% as of Feb. 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 Avalon Advanced Materials (TSX:AVL) Overvalued in 2026?
Based on GuruFocus' analysis, Avalon Advanced Materials stock appears to be undervalued.
The current stock price of C$9.00 is trading 47.2% below its estimated GF Value™ of C$17.04.
GuruFocus considers Avalon Advanced Materials to be Possible Value Trap.
Key valuation signals for TSX:AVL:
Gross Margin %: 34.34%
GF Value™: C$17.04 vs. price of C$9.00 (47.2% below fair value)
Industry Position: 31.1% above the Metals & Mining median (#694 of 731)
No single metric tells the full story. See the TSX:AVL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Avalon Advanced Materials Inc is a mineral exploration and development company. It is principally engaged in the acquisition, exploration, evaluation, and development of specialty and critical minerals properties, located principally in Canada. It holds an exploration license within four claims in the East Kemptville area of Yarmouth, Nova Scotia. The company also holds an interest in a mining lease in the Warren Township Anorthosite Project, Nechalacho REE Project, and Net Smelter Returns (NSR) rights in the East Cedartree Gold Property, and the Wolf Mountain Platinum-Palladium Project located near Thunder Bay, Ontario.
56GF Score
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