The Star Entertainment GroupASX:SGR -3.16% Gross Margin % is 95.28% as of Dec. 2025, which is 0% above its 10-year median of 95.27. The stock has 4 warning signs investors should review. Among 793 Travel & Leisure companies, The Star Entertainment Group ranks better than 97.35% on this metric.
The Star Entertainment Group (ASX:SGR) 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 Star Entertainment Group had a gross margin of 95.28% 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.
The Star Entertainment Group Gross Margin % Related Terms
The Star Entertainment 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:SGR vs LVS, MGM, WYNN: Gross Margin % Comparison
For the Resorts & Casinos subindustry, The Star Entertainment 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 Star Entertainment Group Gross Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, The Star Entertainment Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where The Star Entertainment 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 Star Entertainment Group (ASX:SGR) has a Gross Margin % of 95.28% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on The Star Entertainment Group and its competitors. This is near median its historical median of 95.27. Over the past decade, The Star Entertainment Group's Gross Margin % has ranged from 94.29 to 96.39. According to the industry distribution chart, The Star Entertainment Group ranks #21 out of 793 companies in the Travel & Leisure industry, placing it in the top 2.6%.
Is The Star Entertainment Group's Gross Margin % too high?
The Star Entertainment Group's current Gross Margin % of 95.28% is near median its 10-year median of 95.27. Over the past 10 years, this metric has ranged from a low of 94.29 to a high of 96.39. The Travel & Leisure industry median Gross Margin % is 43.92. The Star Entertainment Group's value of 95.28% is 116.9% above this industry median. Based on the distribution chart, The Star Entertainment Group ranks #21 out of 793 companies in the Travel & Leisure industry, which is in the top quartile — a strong position relative to peers.
How does The Star Entertainment Group's Gross Margin % compare to LVS and MGM?
According to the Travel & Leisure industry distribution chart, The Star Entertainment Group ranks #21 out of 793 companies for Gross Margin %. This places The Star Entertainment Group in the top 3% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 43.92. The Star Entertainment Group's value of 95.28% is 116.9% above this benchmark. Historically, The Star Entertainment Group's own Gross Margin % has ranged from 94.29 to 96.39 over the past decade. While the company's 10-year median is 95.27 vs. the industry median of 43.92, The Star Entertainment 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 a Travel & Leisure company?
The median Gross Margin % among Travel & Leisure companies is 43.92, based on 793 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 Star Entertainment Group's current Gross Margin % of 95.28% is 116.9% 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 Star Entertainment Group and its competitors. For the Travel & Leisure industry, the median Gross Margin % is 43.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Star Entertainment Group's current Gross Margin % is 95.28%, which is near median its own 10-year median of 95.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Star Entertainment Group stock overvalued right now?
Based on GuruFocus' analysis, The Star Entertainment Group (ASX:SGR) is currently considered Modestly Undervalued. The stock's GF Value™ is A$0.13, compared to a current price of A$0.09 — trading 29.2% below its estimated fair value. The current Gross Margin % is 95.28%, which is near median its 10-year median of 95.27 and 116.9% above the Travel & Leisure industry median of 43.92. 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 Star Entertainment Group (ASX:SGR), the current Gross Margin % is 95.28% 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 Star Entertainment Group Ltd is an Australian-based company that operates and manages integrated resorts. The group comprises the following four operating segments: Sydney, Gold Coast, Treasury Brisbane, and The Star Brisbane. It generates the majority of its revenue from the Sydney segment, which comprises the Star Sydney's casino operations, including hotels, restaurants, bars, and other entertainment facilities.
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