Lynas Rare EarthsASX:LYC +4.03%78 Gross Margin % is 34.32% as of Dec. 2025, which is 2% below its 10-year median of 35.11. GuruFocus rates ASX:LYC with a GF Score™ of 78/100 and a GF Value™ of A$13.70 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 730 Metals & Mining companies, Lynas Rare Earths ranks better than 62.74% 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
Lynas Rare Earths had a gross margin of 34.32% for the quarter that ended in Dec. 2025 => 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.
Lynas Rare Earths Gross Margin % Related Terms
Lynas Rare Earths Gross Margin % Historical Data
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The historical data trend for Lynas Rare Earths'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 Other Industrial Metals & Mining subindustry, Lynas Rare Earths'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.
Lynas Rare Earths Gross Margin % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Lynas Rare Earths's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Lynas Rare Earths'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.
Lynas Rare Earths (ASX:LYC) has a Gross Margin % of 34.32% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Lynas Rare Earths and its competitors. This is near median its historical median of 35.11. According to the industry distribution chart, Lynas Rare Earths ranks #272 out of 730 companies in the Metals & Mining industry, placing it in the top 37.3%.
Is Lynas Rare Earths' Gross Margin % too high?
Lynas Rare Earths' current Gross Margin % of 34.32% is near median its 10-year median of 35.11. The Metals & Mining industry median Gross Margin % is 26.05. Lynas Rare Earths' value of 34.32% is 31.8% above this industry median. Based on the distribution chart, Lynas Rare Earths ranks #272 out of 730 companies in the Metals & Mining industry, which is above the industry midpoint. Overall, Lynas Rare Earths has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lynas Rare Earths' Gross Margin % compare to competitors?
According to the Metals & Mining industry distribution chart, Lynas Rare Earths ranks #272 out of 730 companies for Gross Margin %. This puts Lynas Rare Earths in the upper half of its industry. The industry median Gross Margin % is 26.05. Lynas Rare Earths' value of 34.32% is 31.8% above this benchmark. While the company's 10-year median is 35.11 vs. the industry median of 26.05, Lynas Rare Earths 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 Metals & Mining company?
The median Gross Margin % among Metals & Mining companies is 26.05, based on 730 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. Lynas Rare Earths's current Gross Margin % of 34.32% is 31.8% 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 Lynas Rare Earths and its competitors. For the Metals & Mining industry, the median Gross Margin % is 26.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lynas Rare Earths's current Gross Margin % is 34.32%, which is near median its own 10-year median of 35.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lynas Rare Earths stock overvalued right now?
Based on GuruFocus' analysis, Lynas Rare Earths (ASX:LYC) is currently considered Significantly Overvalued. The stock's GF Value™ is A$13.70, compared to a current price of A$19.34 — trading 41.2% above its estimated fair value. The current Gross Margin % is 34.32%, which is near median its 10-year median of 35.11 and 31.8% above the Metals & Mining industry median of 26.05. Lynas Rare Earths' overall GF Score™ is 78/100 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 Lynas Rare Earths (ASX:LYC), the current Gross Margin % is 34.32% 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 Lynas Rare Earths (ASX:LYC) Overvalued in 2026?
Based on GuruFocus' analysis, Lynas Rare Earths stock appears to be overvalued.
The current stock price of A$19.34 is trading 41.2% above its estimated GF Value™ of A$13.70.
GuruFocus considers Lynas Rare Earths to be Significantly Overvalued.
Key valuation signals for ASX:LYC:
Gross Margin %: 34.32% (near median its 10-year median of 35.11)
GF Value™: A$13.70 vs. price of A$19.34 (41.2% above fair value)
Industry Position: 31.8% above the Metals & Mining median (#272 of 730)
No single metric tells the full story. See the ASX:LYC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lynas is the largest rare-earth producer outside China. It owns the high-grade Mount Weld deposit in Western Australia and rare-earth processing facilities in Kalgoorlie and Malaysia. We estimate that Mount Weld is the world's lowest-cost producer of separated neodymium and praseodymium, light rare-earth materials, which are sold to customers in the form of neodymium-praseodymium oxide with a mine life exceeding 20 years. As of December 2025, Lynas is also the only producer of separated heavy rare-earth dysprosium and terbium outside China. The company is further expanding NdPr capacity while diversifying into producing additional separated rare-earth materials, including samarium. It also intends to move downstream into rare-earth metal and magnet production.
78GF Score
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