SGHASX:SGH +0.58%81 Gross Margin % is 38.99% as of Dec. 2025, which is 5% above its 10-year median of 37.19. GuruFocus rates ASX:SGH with a GF Score™ of 81/100 and a GF Value™ of A$38.05 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 511 Conglomerates companies, SGH ranks better than 75.34% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. SGH's Gross Profit for the
six
months ended in Dec. 2025 was A$2,111 Mil. SGH's Revenue for the
six
months ended in Dec. 2025 was A$5,415 Mil. Therefore, SGH's Gross Margin % for the quarter that ended in Dec. 2025 was 38.99%.
Warning Sign:
SGH Ltd gross margin has been in long-term decline. The average rate of decline per year is -4.8%.
The historical rank and industry rank for SGH's Gross Margin % or its related term are showing as below:
ASX:SGH'
s Gross Margin % Range Over the Past 10 Years
Min: 32.08 Med: 37.19 Max: 48.99
Current: 38.96
During the past 13 years, the highestGross Margin % of SGH was 48.99%. The lowest was 32.08%. And the median was 37.19%.
ASX:SGH's Gross Margin % is ranked better than 75.34% of 511
companies
in the Conglomerates industry
Industry Median: 25.96
vs ASX:SGH: 38.96
SGH had a gross margin of 38.99% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for SGH was -4.80% per year.
SGH (ASX:SGH) 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
SGH had a gross margin of 38.99% 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.
SGH Gross Margin % Related Terms
SGH Gross Margin % Historical Data
* Premium members only.
The historical data trend for SGH'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 Conglomerates subindustry, SGH'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.
SGH Gross Margin % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, SGH's Gross Margin % distribution charts can be found below:
* The bar in red indicates where SGH'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.
SGH (ASX:SGH) has a Gross Margin % of 38.99% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on SGH and its competitors. This is near median its historical median of 37.19. Over the past decade, SGH's Gross Margin % has ranged from 32.08 to 48.99. According to the industry distribution chart, SGH ranks #126 out of 511 companies in the Conglomerates industry, placing it in the top 24.7%.
Is SGH's Gross Margin % too high?
SGH's current Gross Margin % of 38.99% is near median its 10-year median of 37.19. Over the past 10 years, this metric has ranged from a low of 32.08 to a high of 48.99. The Conglomerates industry median Gross Margin % is 25.96. SGH's value of 38.99% is 50.2% above this industry median. Based on the distribution chart, SGH ranks #126 out of 511 companies in the Conglomerates industry, which is in the top quartile — a strong position relative to peers. Overall, SGH has a GF Score™ of 81/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SGH's Gross Margin % compare to HON and MMM?
According to the Conglomerates industry distribution chart, SGH ranks #126 out of 511 companies for Gross Margin %. This places SGH in the top 25% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 25.96. SGH's value of 38.99% is 50.2% above this benchmark. Historically, SGH's own Gross Margin % has ranged from 32.08 to 48.99 over the past decade. While the company's 10-year median is 37.19 vs. the industry median of 25.96, SGH 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 Conglomerates company?
The median Gross Margin % among Conglomerates companies is 25.96, based on 511 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. SGH's current Gross Margin % of 38.99% is 50.2% 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 SGH and its competitors. For the Conglomerates industry, the median Gross Margin % is 25.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SGH's current Gross Margin % is 38.99%, which is near median its own 10-year median of 37.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SGH stock overvalued right now?
Based on GuruFocus' analysis, SGH (ASX:SGH) is currently considered Modestly Overvalued. The stock's GF Value™ is A$38.05, compared to a current price of A$46.76 — trading 22.9% above its estimated fair value. The current Gross Margin % is 38.99%, which is near median its 10-year median of 37.19 and 50.2% above the Conglomerates industry median of 25.96. SGH's overall GF Score™ is 81/100 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 SGH (ASX:SGH), the current Gross Margin % is 38.99% 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 SGH (ASX:SGH) Overvalued in 2026?
Based on GuruFocus' analysis, SGH stock appears to be overvalued.
The current stock price of A$46.76 is trading 22.9% above its estimated GF Value™ of A$38.05.
GuruFocus considers SGH to be Modestly Overvalued.
Key valuation signals for ASX:SGH:
Gross Margin %: 38.99% (near median its 10-year median of 37.19)
GF Value™: A$38.05 vs. price of A$46.76 (22.9% above fair value)
Industry Position: 50.2% above the Conglomerates median (#126 of 511)
No single metric tells the full story. See the ASX:SGH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SGH is a diversified industrial and investment group, with interests in heavy-equipment sales, service and equipment hire, media and broadcasting, oil and gas, and developable property. It changed its name from Seven Group in 2024, the rebrand to reflect an evolution toward diversified industrial-focused activities, away from media. SGH is domiciled in Australia where it predominantly operates.
81GF Score
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