Step One ClothingASX:STP -3.57%39 Gross Margin % is 43.09% as of Dec. 2025, which is 47% below its 10-year median of 80.76. GuruFocus rates ASX:STP with a GF Score™ of 39/100 and a GF Value™ of A$0.64 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 1,117 Retail - Cyclical companies, Step One Clothing ranks better than 85.41% on this metric.
The historical rank and industry rank for Step One Clothing's Gross Margin % or its related term are showing as below:
ASX:STP'
s Gross Margin % Range Over the Past 10 Years
Min: 59.24 Med: 80.76 Max: 81.97
Current: 59.24
During the past 5 years, the highestGross Margin % of Step One Clothing was 81.97%. The lowest was 59.24%. And the median was 80.76%.
ASX:STP's Gross Margin % is ranked better than 85.41% of 1117
companies
in the Retail - Cyclical industry
Industry Median: 36.23
vs ASX:STP: 59.24
Step One Clothing had a gross margin of 43.09% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Step One Clothing was 0.00% per year.
Step One Clothing (ASX:STP) 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
Step One Clothing had a gross margin of 43.09% 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.
Step One Clothing Gross Margin % Related Terms
Step One Clothing Gross Margin % Historical Data
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The historical data trend for Step One Clothing'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:STP vs TJX, ROST, BURL: Gross Margin % Comparison
For the Apparel Retail subindustry, Step One Clothing'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.
Step One Clothing Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Step One Clothing's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Step One Clothing'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.
Step One Clothing (ASX:STP) has a Gross Margin % of 43.09% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Step One Clothing and its competitors. This is 47% below median its historical median of 80.76. Over the past decade, Step One Clothing's Gross Margin % has ranged from 59.24 to 81.97. According to the industry distribution chart, Step One Clothing ranks #163 out of 1117 companies in the Retail - Cyclical industry, placing it in the top 14.6%.
Is Step One Clothing's Gross Margin % too high?
Step One Clothing's current Gross Margin % of 43.09% is 47% below median its 10-year median of 80.76. Over the past 10 years, this metric has ranged from a low of 59.24 to a high of 81.97. The Retail - Cyclical industry median Gross Margin % is 36.23. Step One Clothing's value of 43.09% is 18.9% above this industry median. Based on the distribution chart, Step One Clothing ranks #163 out of 1117 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Step One Clothing has a GF Score™ of 39/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Step One Clothing's Gross Margin % compare to TJX and ROST?
According to the Retail - Cyclical industry distribution chart, Step One Clothing ranks #163 out of 1117 companies for Gross Margin %. This places Step One Clothing in the top 15% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 36.23. Step One Clothing's value of 43.09% is 18.9% above this benchmark. Historically, Step One Clothing's own Gross Margin % has ranged from 59.24 to 81.97 over the past decade. While the company's 10-year median is 80.76 vs. the industry median of 36.23, Step One Clothing 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 Retail - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.23, based on 1,117 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. Step One Clothing's current Gross Margin % of 43.09% is 18.9% 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 Step One Clothing and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Step One Clothing's current Gross Margin % is 43.09%, which is 47% below median its own 10-year median of 80.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Step One Clothing stock overvalued right now?
Based on GuruFocus' analysis, Step One Clothing (ASX:STP) is currently considered Significantly Undervalued. The stock's GF Value™ is A$0.64, compared to a current price of A$0.14 — trading 78.9% below its estimated fair value. The current Gross Margin % is 43.09%, which is 47% below median its 10-year median of 80.76 and 18.9% above the Retail - Cyclical industry median of 36.23. Step One Clothing's overall GF Score™ is 39/100 with 3 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 Step One Clothing (ASX:STP), the current Gross Margin % is 43.09% 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 Step One Clothing (ASX:STP) Overvalued in 2026?
Based on GuruFocus' analysis, Step One Clothing stock appears to be undervalued.
The current stock price of A$0.14 is trading 78.9% below its estimated GF Value™ of A$0.64.
GuruFocus considers Step One Clothing to be Significantly Undervalued.
Key valuation signals for ASX:STP:
Gross Margin %: 43.09% (47% below median its 10-year median of 80.76)
GF Value™: A$0.64 vs. price of A$0.14 (78.9% below fair value)
Industry Position: 18.9% above the Retail - Cyclical median (#163 of 1117)
No single metric tells the full story. See the ASX:STP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Step One Clothing Ltd is a direct-to-consumer online retailer for men's undergarments. Its products comprise Boxer Brief, Trunks, and Boxer Breif+Fly. Its group is organized into three operating segments, being online retail sales for Australia, the United Kingdom, and the United States of America, however, these segments are aggregated into one reportable segment.
39GF Score
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