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EmbeltonASX:EMB 68 Gross Margin % is 22.90% as of Dec. 2025, which is 10% below its 10-year median of 25.44. GuruFocus rates ASX:EMB with a GF Score™ of 68/100 and a GF Value™ of A$9.02 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 1,722 Construction companies, Embelton ranks better than 54.59% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Embelton's Gross Profit for the
six
months ended in Dec. 2025 was A$8.81 Mil. Embelton's Revenue for the
six
months ended in Dec. 2025 was A$38.46 Mil. Therefore, Embelton's Gross Margin % for the quarter that ended in Dec. 2025 was 22.90%.
Warning Sign:
Embelton Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.2%.
The historical rank and industry rank for Embelton's Gross Margin % or its related term are showing as below:
ASX:EMB'
s Gross Margin % Range Over the Past 10 Years
Min: 20.09 Med: 25.44 Max: 34.4
Current: 23.02
During the past 13 years, the highestGross Margin % of Embelton was 34.40%. The lowest was 20.09%. And the median was 25.44%.
ASX:EMB's Gross Margin % is ranked better than 54.59% of 1722
companies
in the Construction industry
Industry Median: 20.7
vs ASX:EMB: 23.02
Embelton had a gross margin of 22.90% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Embelton was -1.20% per year.
Embelton (ASX:EMB) 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
Embelton had a gross margin of 22.90% 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.
Embelton Gross Margin % Related Terms
Embelton Gross Margin % Historical Data
* Premium members only.
The historical data trend for Embelton'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.
ASX:EMB vs TT, JCI, CARR: Gross Margin % Comparison
For the Building Products & Equipment subindustry, Embelton'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.
Embelton Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Embelton's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Embelton'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.
Embelton (ASX:EMB) has a Gross Margin % of 22.90% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Embelton and its competitors. This is 10% below median its historical median of 25.44. Over the past decade, Embelton's Gross Margin % has ranged from 20.09 to 34.40. According to the industry distribution chart, Embelton ranks #782 out of 1722 companies in the Construction industry, placing it in the top 45.4%.
Is Embelton's Gross Margin % too high?
Embelton's current Gross Margin % of 22.90% is 10% below median its 10-year median of 25.44. Over the past 10 years, this metric has ranged from a low of 20.09 to a high of 34.40. The Construction industry median Gross Margin % is 20.70. Embelton's value of 22.90% is 10.6% above this industry median. Based on the distribution chart, Embelton ranks #782 out of 1722 companies in the Construction industry, which is above the industry midpoint. Overall, Embelton has a GF Score™ of 68/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Embelton's Gross Margin % compare to TT and JCI?
According to the Construction industry distribution chart, Embelton ranks #782 out of 1722 companies for Gross Margin %. This puts Embelton in the upper half of its industry. The industry median Gross Margin % is 20.70. Embelton's value of 22.90% is 10.6% above this benchmark. Historically, Embelton's own Gross Margin % has ranged from 20.09 to 34.40 over the past decade. While the company's 10-year median is 25.44 vs. the industry median of 20.70, Embelton 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 Construction company?
The median Gross Margin % among Construction companies is 20.70, based on 1,722 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. Embelton's current Gross Margin % of 22.90% is 10.6% 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 Embelton and its competitors. For the Construction industry, the median Gross Margin % is 20.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Embelton's current Gross Margin % is 22.90%, which is 10% below median its own 10-year median of 25.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Embelton stock overvalued right now?
Based on GuruFocus' analysis, Embelton (ASX:EMB) is currently considered Modestly Undervalued. The stock's GF Value™ is A$9.02, compared to a current price of A$8.00 — trading 11.3% below its estimated fair value. The current Gross Margin % is 22.90%, which is 10% below median its 10-year median of 25.44 and 10.6% above the Construction industry median of 20.70. Embelton's overall GF Score™ is 68/100 with 7 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 Embelton (ASX:EMB), the current Gross Margin % is 22.90% 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 Embelton (ASX:EMB) Overvalued in 2026?
Based on GuruFocus' analysis, Embelton stock appears to be undervalued.
The current stock price of A$8.00 is trading 11.3% below its estimated GF Value™ of A$9.02.
GuruFocus considers Embelton to be Modestly Undervalued.
Key valuation signals for ASX:EMB:
Gross Margin %: 22.90% (10% below median its 10-year median of 25.44)
GF Value™: A$9.02 vs. price of A$8.00 (11.3% below fair value)
Industry Position: 10.6% above the Construction median (#782 of 1722)
No single metric tells the full story. See the ASX:EMB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Embelton Ltd is an Australian company specializing in the manufacture, distribution, and installation of flooring products and noise and vibration control systems. The company supplies timber flooring and commercial floor coverings through a national network that includes warehouses and retail partners. Embelton also provides metal bending, fabrication services, and engineering solutions, including noise and vibration isolation systems, with operations extending internationally. The company's reportable segments comprise Merchandising, Commercial, and Manufacturing. It generates the majority of its revenue from the Contracting and commercial segment, i.e, through supplying and installing flooring and related products across commercial and residential construction sectors in Australia.
68GF Score
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