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
Rochester Resources had a gross margin of 27.87% 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.
Rochester Resources Gross Margin % Related Terms
Rochester Resources Gross Margin % Historical Data
* Premium members only.
The historical data trend for Rochester Resources'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 Gold subindustry, Rochester Resources'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.
Rochester Resources Gross Margin % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Rochester Resources's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Rochester Resources'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.
Rochester Resources (TSXV:RCT) has a Gross Margin % of 27.87% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Rochester Resources and its competitors. According to the industry distribution chart, Rochester Resources ranks #474 out of 728 companies in the Metals & Mining industry, placing it in the top 65.1%.
Is Rochester Resources' Gross Margin % too high?
Rochester Resources' current Gross Margin % is 27.87%. The Metals & Mining industry median Gross Margin % is 26.21. Rochester Resources' value of 27.87% is 6.4% above this industry median. Based on the distribution chart, Rochester Resources ranks #474 out of 728 companies in the Metals & Mining industry, which is below the industry midpoint. Overall, Rochester Resources has a GF Score™ of 19/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rochester Resources' Gross Margin % compare to NEM and AU?
According to the Metals & Mining industry distribution chart, Rochester Resources ranks #474 out of 728 companies for Gross Margin %. This places Rochester Resources in the lower half of its industry. The industry median Gross Margin % is 26.21. Rochester Resources' value of 27.87% is 6.4% 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 26.21, based on 728 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. Rochester Resources's current Gross Margin % of 27.87% is 6.4% 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 Rochester Resources and its competitors. For the Metals & Mining industry, the median Gross Margin % is 26.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rochester Resources's current Gross Margin % is 27.87%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rochester Resources stock overvalued right now?
Based on GuruFocus' analysis, Rochester Resources (TSXV:RCT) is currently considered Significantly Overvalued. The stock's GF Value™ is C$0.03, compared to a current price of C$0.19 — trading 533.3% above its estimated fair value. The current Gross Margin % is 27.87% and 6.4% above the Metals & Mining industry median of 26.21. Rochester Resources' overall GF Score™ is 19/100 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 Rochester Resources (TSXV:RCT), the current Gross Margin % is 27.87% 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 Rochester Resources (TSXV:RCT) Overvalued in 2026?
Based on GuruFocus' analysis, Rochester Resources stock appears to be overvalued.
The current stock price of C$0.19 is trading 533.3% above its estimated GF Value™ of C$0.03.
GuruFocus considers Rochester Resources to be Significantly Overvalued.
Key valuation signals for TSXV:RCT:
Gross Margin %: 27.87%
GF Value™: C$0.03 vs. price of C$0.19 (533.3% above fair value)
Industry Position: 6.4% above the Metals & Mining median (#474 of 728)
No single metric tells the full story. See the TSXV:RCT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rochester Resources Ltd is a Canada-based mineral exploration and development company. Principally, the company is engaged in the business of acquisition, exploration, and development of exploration and evaluation of assets in Mexico. It holds interest in the Mina real and San Francisco properties. The firm operates in one segment being the acquisition, exploration and development of exploration and evaluation assets. Its mineral operations are located in Mexico and its corporate assets are located in Canada. It derives revenue from mineral exploration activity in Mexico.
19GF Score
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