Simonds GroupASX:SIO 48 Gross Margin % is 23.27% as of Dec. 2025, which is 7% above its 10-year median of 21.74. GuruFocus rates ASX:SIO with a GF Score™ of 48/100 and a GF Value™ of A$0.14 (Fairly Valued). The stock has 7 warning signs investors should review. Among 90 Homebuilding & Construction companies, Simonds Group ranks better than 61.11% on this metric.
Simonds Group Ltd gross margin has been in long-term decline. The average rate of decline per year is -2.4%.
The historical rank and industry rank for Simonds Group's Gross Margin % or its related term are showing as below:
ASX:SIO'
s Gross Margin % Range Over the Past 10 Years
Min: 16.5 Med: 21.74 Max: 24.54
Current: 23.05
During the past 11 years, the highestGross Margin % of Simonds Group was 24.54%. The lowest was 16.50%. And the median was 21.74%.
ASX:SIO's Gross Margin % is ranked better than 61.11% of 90
companies
in the Homebuilding & Construction industry
Industry Median: 21.34
vs ASX:SIO: 23.05
Simonds Group had a gross margin of 23.27% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Simonds Group was -2.40% per year.
Simonds Group (ASX:SIO) 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
Simonds Group had a gross margin of 23.27% 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.
Simonds Group Gross Margin % Related Terms
Simonds Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for Simonds Group'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:SIO vs DHI, PHM, LEN: Gross Margin % Comparison
For the Residential Construction subindustry, Simonds 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.
Simonds Group Gross Margin % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Simonds Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Simonds 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.
Simonds Group (ASX:SIO) has a Gross Margin % of 23.27% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Simonds Group and its competitors. This is near median its historical median of 21.74. Over the past decade, Simonds Group's Gross Margin % has ranged from 16.50 to 24.54. According to the industry distribution chart, Simonds Group ranks #35 out of 90 companies in the Homebuilding & Construction industry, placing it in the top 38.9%.
Is Simonds Group's Gross Margin % too high?
Simonds Group's current Gross Margin % of 23.27% is near median its 10-year median of 21.74. Over the past 10 years, this metric has ranged from a low of 16.50 to a high of 24.54. The Homebuilding & Construction industry median Gross Margin % is 21.34. Simonds Group's value of 23.27% is 9% above this industry median. Based on the distribution chart, Simonds Group ranks #35 out of 90 companies in the Homebuilding & Construction industry, which is above the industry midpoint. Overall, Simonds Group has a GF Score™ of 48/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Simonds Group's Gross Margin % compare to DHI and PHM?
According to the Homebuilding & Construction industry distribution chart, Simonds Group ranks #35 out of 90 companies for Gross Margin %. This puts Simonds Group in the upper half of its industry. The industry median Gross Margin % is 21.34. Simonds Group's value of 23.27% is 9% above this benchmark. Historically, Simonds Group's own Gross Margin % has ranged from 16.50 to 24.54 over the past decade. While the company's 10-year median is 21.74 vs. the industry median of 21.34, Simonds 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 Homebuilding & Construction company?
The median Gross Margin % among Homebuilding & Construction companies is 21.34, based on 90 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. Simonds Group's current Gross Margin % of 23.27% is 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 Simonds Group and its competitors. For the Homebuilding & Construction industry, the median Gross Margin % is 21.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Simonds Group's current Gross Margin % is 23.27%, which is near median its own 10-year median of 21.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Simonds Group stock overvalued right now?
Based on GuruFocus' analysis, Simonds Group (ASX:SIO) is currently considered Fairly Valued. The stock's GF Value™ is A$0.14, compared to a current price of A$0.15 — trading 7.1% above its estimated fair value. The current Gross Margin % is 23.27%, which is near median its 10-year median of 21.74 and 9% above the Homebuilding & Construction industry median of 21.34. Simonds Group's overall GF Score™ is 48/100 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 Simonds Group (ASX:SIO), the current Gross Margin % is 23.27% 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 Simonds Group (ASX:SIO) Overvalued in 2026?
Based on GuruFocus' analysis, Simonds Group stock appears to be overvalued.
The current stock price of A$0.15 is trading 7.1% above its estimated GF Value™ of A$0.14.
GuruFocus considers Simonds Group to be Fairly Valued.
Key valuation signals for ASX:SIO:
Gross Margin %: 23.27% (near median its 10-year median of 21.74)
GF Value™: A$0.14 vs. price of A$0.15 (7.1% above fair value)
Industry Position: 9% above the Homebuilding & Construction median (#35 of 90)
No single metric tells the full story. See the ASX:SIO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Simonds Group Ltd is engaged in the design and construction of residential dwellings. Its operating segment includes Residential construction and Land development. The company generates maximum revenue from the Residential construction segment. Its Residential construction segment includes activities relating to contracts for residential home construction, speculative home building, and the building of display home inventory. Geographically, it operates only in Australia.
48GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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