Southern Cross Media GroupASX:SXL +2.88%54 Gross Margin % is 80.68% as of Dec. 2025, which is 3% above its 10-year median of 78.69. GuruFocus rates ASX:SXL with a GF Score™ of 54/100 and a GF Value™ of A$0.72 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 945 Media - Diversified companies, Southern Cross Media Group ranks better than 86.88% on this metric.
Southern Cross Media Group (ASX:SXL) 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
Southern Cross Media Group had a gross margin of 80.68% 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.
Southern Cross Media Group Gross Margin % Related Terms
Southern Cross Media 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:SXL vs NFLX, DIS, WBD: Gross Margin % Comparison
For the Entertainment subindustry, Southern Cross Media 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.
Southern Cross Media Group Gross Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Southern Cross Media Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Southern Cross Media 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.
Southern Cross Media Group (ASX:SXL) has a Gross Margin % of 80.68% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Southern Cross Media Group and its competitors. This is near median its historical median of 78.69. Over the past decade, Southern Cross Media Group's Gross Margin % has ranged from 70.02 to 82.37. According to the industry distribution chart, Southern Cross Media Group ranks #124 out of 945 companies in the Media - Diversified industry, placing it in the top 13.1%.
Is Southern Cross Media Group's Gross Margin % too high?
Southern Cross Media Group's current Gross Margin % of 80.68% is near median its 10-year median of 78.69. Over the past 10 years, this metric has ranged from a low of 70.02 to a high of 82.37. The Media - Diversified industry median Gross Margin % is 38.99. Southern Cross Media Group's value of 80.68% is 106.9% above this industry median. Based on the distribution chart, Southern Cross Media Group ranks #124 out of 945 companies in the Media - Diversified industry, which is in the top quartile — a strong position relative to peers. Overall, Southern Cross Media Group has a GF Score™ of 54/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Southern Cross Media Group's Gross Margin % compare to NFLX and DIS?
According to the Media - Diversified industry distribution chart, Southern Cross Media Group ranks #124 out of 945 companies for Gross Margin %. This places Southern Cross Media Group in the top 13% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 38.99. Southern Cross Media Group's value of 80.68% is 106.9% above this benchmark. Historically, Southern Cross Media Group's own Gross Margin % has ranged from 70.02 to 82.37 over the past decade. While the company's 10-year median is 78.69 vs. the industry median of 38.99, Southern Cross Media 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 Media - Diversified company?
The median Gross Margin % among Media - Diversified companies is 38.99, based on 945 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. Southern Cross Media Group's current Gross Margin % of 80.68% is 106.9% 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 Southern Cross Media Group and its competitors. For the Media - Diversified industry, the median Gross Margin % is 38.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Southern Cross Media Group's current Gross Margin % is 80.68%, which is near median its own 10-year median of 78.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Southern Cross Media Group stock overvalued right now?
Based on GuruFocus' analysis, Southern Cross Media Group (ASX:SXL) is currently considered Modestly Undervalued. The stock's GF Value™ is A$0.72, compared to a current price of A$0.54 — trading 25.7% below its estimated fair value. The current Gross Margin % is 80.68%, which is near median its 10-year median of 78.69 and 106.9% above the Media - Diversified industry median of 38.99. Southern Cross Media Group's overall GF Score™ is 54/100 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 Southern Cross Media Group (ASX:SXL), the current Gross Margin % is 80.68% 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 Southern Cross Media Group (ASX:SXL) Overvalued in 2026?
Based on GuruFocus' analysis, Southern Cross Media Group stock appears to be undervalued.
The current stock price of A$0.54 is trading 25.7% below its estimated GF Value™ of A$0.72.
GuruFocus considers Southern Cross Media Group to be Modestly Undervalued.
Key valuation signals for ASX:SXL:
Gross Margin %: 80.68% (near median its 10-year median of 78.69)
GF Value™: A$0.72 vs. price of A$0.54 (25.7% below fair value)
Industry Position: 106.9% above the Media - Diversified median (#124 of 945)
No single metric tells the full story. See the ASX:SXL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Southern Cross Media broadcasts radio programming across Australia and generates revenue and earnings from sales of airtime to advertisers. In metropolitan areas, it runs two radio networks (Hit and Triple M). In regional areas, the company runs a portfolio of radio stations. It is also operating digital audio, which has a rapidly growing audience and turned profitable from fiscal 2025. Southern Cross merged with Seven West Media in January 2026 and now owns Seven's TV and newspaper businesses.
54GF Score
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