Chemins de Fer Departementaux (XPAR:MLCFD) 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
Chemins de Fer Departementaux had a gross margin of -33.47% for the quarter that ended in Dec. 2025 => 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.
Chemins de Fer Departementaux Gross Margin % Related Terms
Chemins de Fer Departementaux 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.
Chemins de Fer Departementaux Gross Margin % Chart
XPAR:MLCFD vs UNP, CSX, NSC: Gross Margin % Comparison
For the Railroads subindustry, Chemins de Fer Departementaux'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.
Chemins de Fer Departementaux Gross Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, Chemins de Fer Departementaux's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Chemins de Fer Departementaux'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.
Chemins de Fer Departementaux (XPAR:MLCFD) has a Gross Margin % of -33.47% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Chemins de Fer Departementaux and its competitors. According to the industry distribution chart, Chemins de Fer Departementaux ranks #975 out of 980 companies in the Transportation industry, placing it in the top 99.5%.
Is Chemins de Fer Departementaux's Gross Margin % too high?
Chemins de Fer Departementaux's current Gross Margin % is -33.47%. Based on the distribution chart, Chemins de Fer Departementaux ranks #975 out of 980 companies in the Transportation industry, which is in the bottom quartile relative to peers. Overall, Chemins de Fer Departementaux has a GF Score™ of 17/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Chemins de Fer Departementaux's Gross Margin % compare to UNP and CSX?
According to the Transportation industry distribution chart, Chemins de Fer Departementaux ranks #975 out of 980 companies for Gross Margin %. This places Chemins de Fer Departementaux in the lower half of its industry. The industry median Gross Margin % is 20.40. 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 Transportation company?
The median Gross Margin % among Transportation companies is 20.40, based on 980 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. 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 Chemins de Fer Departementaux and its competitors. For the Transportation industry, the median Gross Margin % is 20.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chemins de Fer Departementaux's current Gross Margin % is -33.47%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chemins de Fer Departementaux stock overvalued right now?
Based on GuruFocus' analysis, Chemins de Fer Departementaux (XPAR:MLCFD) is currently considered Significantly Overvalued. The stock's GF Value™ is €766.26, compared to a current price of €1,080.00 — trading 40.9% above its estimated fair value. The current Gross Margin % is -33.47%. Chemins de Fer Departementaux's overall GF Score™ is 17/100 with 4 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 Chemins de Fer Departementaux (XPAR:MLCFD), the current Gross Margin % is -33.47% 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 Chemins de Fer Departementaux (XPAR:MLCFD) Overvalued in 2026?
Based on GuruFocus' analysis, Chemins de Fer Departementaux stock appears to be overvalued.
The current stock price of €1,080.00 is trading 40.9% above its estimated GF Value™ of €766.26.
GuruFocus considers Chemins de Fer Departementaux to be Significantly Overvalued.
Key valuation signals for XPAR:MLCFD:
Gross Margin %: -33.47%
GF Value™: €766.26 vs. price of €1,080.00 (40.9% above fair value)
No single metric tells the full story. See the XPAR:MLCFD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chemins de Fer Departementaux Business Description
Chemins de Fer Departementaux designs, constructs and installs railroad materials and equipment. The company's products includes locomotives, maneuvering and line locomotives, rail-road engines, rail cars, passenger cars, funiculars and electric rail car branches.
17GF Score
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