The Environmental GroupASX:EGL -3.30% Gross Margin % is 29.29% as of Dec. 2025, which is 9% above its 10-year median of 26.86. The stock has 5 warning signs investors should review. Among 2,998 Industrial Products companies, The Environmental Group ranks better than 58.54% on this metric.
ASX:EGL's Gross Margin % is ranked better than 58.54% of 2998
companies
in the Industrial Products industry
Industry Median: 26.82
vs ASX:EGL: 30.09
The Environmental Group had a gross margin of 29.29% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for The Environmental Group was -0.80% per year.
The Environmental Group (ASX:EGL) 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
The Environmental Group had a gross margin of 29.29% 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.
The Environmental Group Gross Margin % Related Terms
The Environmental Group 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.
ASX:EGL vs VLTO, ZWS, CECO: Gross Margin % Comparison
For the Pollution & Treatment Controls subindustry, The Environmental Group'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.
The Environmental Group Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, The Environmental Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where The Environmental Group'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.
The Environmental Group (ASX:EGL) has a Gross Margin % of 29.29% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on The Environmental Group and its competitors. This is near median its historical median of 26.86. Over the past decade, The Environmental Group's Gross Margin % has ranged from 22.52 to 33.35. According to the industry distribution chart, The Environmental Group ranks #1243 out of 2998 companies in the Industrial Products industry, placing it in the top 41.5%.
Is The Environmental Group's Gross Margin % too high?
The Environmental Group's current Gross Margin % of 29.29% is near median its 10-year median of 26.86. Over the past 10 years, this metric has ranged from a low of 22.52 to a high of 33.35. The Industrial Products industry median Gross Margin % is 26.82. The Environmental Group's value of 29.29% is 9.2% above this industry median. Based on the distribution chart, The Environmental Group ranks #1243 out of 2998 companies in the Industrial Products industry, which is above the industry midpoint.
How does The Environmental Group's Gross Margin % compare to VLTO and ZWS?
According to the Industrial Products industry distribution chart, The Environmental Group ranks #1243 out of 2998 companies for Gross Margin %. This puts The Environmental Group in the upper half of its industry. The industry median Gross Margin % is 26.82. The Environmental Group's value of 29.29% is 9.2% above this benchmark. Historically, The Environmental Group's own Gross Margin % has ranged from 22.52 to 33.35 over the past decade. While the company's 10-year median is 26.86 vs. the industry median of 26.82, The Environmental Group 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.82, based on 2,998 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. The Environmental Group's current Gross Margin % of 29.29% is 9.2% 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 The Environmental Group and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Environmental Group's current Gross Margin % is 29.29%, which is near median its own 10-year median of 26.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Environmental Group stock overvalued right now?
Based on GuruFocus' analysis, The Environmental Group (ASX:EGL) is currently considered Possible Value Trap. The stock's GF Value™ is A$0.30, compared to a current price of A$0.09 — trading 70.7% below its estimated fair value. The current Gross Margin % is 29.29%, which is near median its 10-year median of 26.86 and 9.2% above the Industrial Products industry median of 26.82. 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 The Environmental Group (ASX:EGL), the current Gross Margin % is 29.29% 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.
The Environmental Group Ltd is a facility service and environmental solutions company. Its principal activities are the design, application, and servicing of gas and vapor emission control systems, inlet and exhaust systems for gas turbines and engineering services, and water treatment, service, and maintenance of commercial boilers and engineering services, to a wide variety of industries. Its operating segments include EGL Clean Air TAPC, EGL Clean Air Airtight, EGL Energy, EGL Turbine Enhancement, EGL Waste, and others. It generates the majority of its revenue from the EGL Energy segment.
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