General de Alquiler de Maquinaria (XMAD:GAM) 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
General de Alquiler de Maquinaria had a gross margin of 64.64% for the quarter that ended in Dec. 2025 => Durable 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.
General de Alquiler de Maquinaria Gross Margin % Related Terms
General de Alquiler de Maquinaria 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.
General de Alquiler de Maquinaria Gross Margin % Chart
XMAD:GAM vs URI, SUNB, AER: Gross Margin % Comparison
For the Rental & Leasing Services subindustry, General de Alquiler de Maquinaria'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.
General de Alquiler de Maquinaria Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, General de Alquiler de Maquinaria's Gross Margin % distribution charts can be found below:
* The bar in red indicates where General de Alquiler de Maquinaria'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.
General de Alquiler de Maquinaria (XMAD:GAM) has a Gross Margin % of 64.64% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on General de Alquiler de Maquinaria and its competitors. This is near median its historical median of 67.01. Over the past decade, General de Alquiler de Maquinaria's Gross Margin % has ranged from 62.42 to 82.71. According to the industry distribution chart, General de Alquiler de Maquinaria ranks #199 out of 1007 companies in the Business Services industry, placing it in the top 19.8%.
Is General de Alquiler de Maquinaria's Gross Margin % too high?
General de Alquiler de Maquinaria's current Gross Margin % of 64.64% is near median its 10-year median of 67.01. Over the past 10 years, this metric has ranged from a low of 62.42 to a high of 82.71. The Business Services industry median Gross Margin % is 34.46. General de Alquiler de Maquinaria's value of 64.64% is 87.6% above this industry median. Based on the distribution chart, General de Alquiler de Maquinaria ranks #199 out of 1007 companies in the Business Services industry, which is in the top quartile — a strong position relative to peers. Overall, General de Alquiler de Maquinaria has a GF Score™ of 83/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does General de Alquiler de Maquinaria's Gross Margin % compare to URI and SUNB?
According to the Business Services industry distribution chart, General de Alquiler de Maquinaria ranks #199 out of 1007 companies for Gross Margin %. This places General de Alquiler de Maquinaria in the top 20% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 34.46. General de Alquiler de Maquinaria's value of 64.64% is 87.6% above this benchmark. Historically, General de Alquiler de Maquinaria's own Gross Margin % has ranged from 62.42 to 82.71 over the past decade. While the company's 10-year median is 67.01 vs. the industry median of 34.46, General de Alquiler de Maquinaria has consistently been above 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 Business Services company?
The median Gross Margin % among Business Services companies is 34.46, based on 1,007 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. General de Alquiler de Maquinaria's current Gross Margin % of 64.64% is 87.6% 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 General de Alquiler de Maquinaria and its competitors. For the Business Services industry, the median Gross Margin % is 34.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. General de Alquiler de Maquinaria's current Gross Margin % is 64.64%, which is near median its own 10-year median of 67.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is General de Alquiler de Maquinaria stock overvalued right now?
Based on GuruFocus' analysis, General de Alquiler de Maquinaria (XMAD:GAM) is currently considered Fairly Valued. The stock's GF Value™ is €1.48, compared to a current price of €1.51 — trading 2% above its estimated fair value. The current Gross Margin % is 64.64%, which is near median its 10-year median of 67.01 and 87.6% above the Business Services industry median of 34.46. General de Alquiler de Maquinaria's overall GF Score™ is 83/100 with 8 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 General de Alquiler de Maquinaria (XMAD:GAM), the current Gross Margin % is 64.64% 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 General de Alquiler de Maquinaria (XMAD:GAM) Overvalued in 2026?
Based on GuruFocus' analysis, General de Alquiler de Maquinaria stock appears to be overvalued.
The current stock price of €1.51 is trading 2% above its estimated GF Value™ of €1.48.
GuruFocus considers General de Alquiler de Maquinaria to be Fairly Valued.
Key valuation signals for XMAD:GAM:
Gross Margin %: 64.64% (near median its 10-year median of 67.01)
GF Value™: €1.48 vs. price of €1.51 (2% above fair value)
Industry Position: 87.6% above the Business Services median (#199 of 1007)
No single metric tells the full story. See the XMAD:GAM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
General de Alquiler de Maquinaria Business Description
General de Alquiler de Maquinaria SA is a machinery rental company. The company's rental fleet includes compactors, compressors, dumpers, electric machinery, platforms, cranes, scaffolds and transport vehicles, as well as auxiliary equipment and machinery used in the infrastructure, agricultural, port, construction, industrial and energy sectors. In addition, the company is involved in the sale of second-hand equipment.
83GF Score
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