Scout SecurityASX:SCT Gross Margin % is 65.40% as of Dec. 2025, which is 35% above its 10-year median of 48.55. The stock has 8 warning signs investors should review.
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
Scout Security had a gross margin of 65.40% 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.
Scout Security Gross Margin % Related Terms
Scout Security Gross Margin % Historical Data
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The historical data trend for Scout Security'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:SCT vs ALLE, MSA, ADT: Gross Margin % Comparison
For the Security & Protection Services subindustry, Scout Security'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.
Scout Security Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Scout Security's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Scout Security'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.
Scout Security (ASX:SCT) has a Gross Margin % of 65.40% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Scout Security and its competitors. This is 35% above median its historical median of 48.55. Over the past decade, Scout Security's Gross Margin % has ranged from 19.55 to 69.36.
Is Scout Security's Gross Margin % too high?
Scout Security's current Gross Margin % of 65.40% is 35% above median its 10-year median of 48.55. Over the past 10 years, this metric has ranged from a low of 19.55 to a high of 69.36. The Business Services industry median Gross Margin % is 34.46. Scout Security's value of 65.40% is 89.8% above this industry median.
How does Scout Security's Gross Margin % compare to ALLE and MSA?
Scout Security's Gross Margin % of 65.40% can be compared against companies in the Business Services industry. The industry median Gross Margin % is 34.46. Scout Security's value of 65.40% is 89.8% above this benchmark. Historically, Scout Security's own Gross Margin % has ranged from 19.55 to 69.36 over the past decade. While the company's 10-year median is 48.55 vs. the industry median of 34.46, Scout Security 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. Scout Security's current Gross Margin % of 65.40% is 89.8% 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 Scout Security 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. Scout Security's current Gross Margin % is 65.40%, which is 35% above median its own 10-year median of 48.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Scout Security stock overvalued right now?
Scout Security (ASX:SCT) has a current Gross Margin % of 65.40%. The current Gross Margin % is 65.40%, which is 35% above median its 10-year median of 48.55 and 89.8% above the Business Services industry median of 34.46. 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 Scout Security (ASX:SCT), the current Gross Margin % is 65.40% 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.
Scout Security Ltd is an Australian firm that sells the Scout alarm, a self-installed, wireless home security system. Its product includes Scout Hub, Door Panel, Motion Sensor, Access Sensor, Scout Indoor Camera, Scout Video Doorbell, Keypad, Water Sensor, Smart Smoke and Carbon Monoxide Detector, Glass Break Sensor, and Door Lock. The firm operates in one segment, being home security services in the USA. The Key revenue is derived from the USA. The company operates in the United States and Australia, with the majority of its revenue generated from the United States.
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