Terragen HoldingsASX:TGH Gross Margin % is 66.07% as of Dec. 2025, which is 26% below its 10-year median of 88.91. The stock has 6 warning signs investors should review. Among 247 Agriculture companies, Terragen Holdings ranks better than 95.55% on this metric.
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
Terragen Holdings had a gross margin of 66.07% 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.
Terragen Holdings Gross Margin % Related Terms
Terragen Holdings Gross Margin % Historical Data
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The historical data trend for Terragen Holdings'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:TGH vs CTVA, CF, MOS: Gross Margin % Comparison
For the Agricultural Inputs subindustry, Terragen Holdings'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.
Terragen Holdings Gross Margin % vs Agriculture Industry
For the Agriculture industry and Basic Materials sector, Terragen Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Terragen Holdings'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.
Terragen Holdings (ASX:TGH) has a Gross Margin % of 66.07% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Terragen Holdings and its competitors. This is 26% below median its historical median of 88.91. Over the past decade, Terragen Holdings' Gross Margin % has ranged from 49.04 to 98.02. According to the industry distribution chart, Terragen Holdings ranks #11 out of 247 companies in the Agriculture industry, placing it in the top 4.5%.
Is Terragen Holdings' Gross Margin % too high?
Terragen Holdings' current Gross Margin % of 66.07% is 26% below median its 10-year median of 88.91. Over the past 10 years, this metric has ranged from a low of 49.04 to a high of 98.02. The Agriculture industry median Gross Margin % is 24.81. Terragen Holdings' value of 66.07% is 166.3% above this industry median. Based on the distribution chart, Terragen Holdings ranks #11 out of 247 companies in the Agriculture industry, which is in the top quartile — a strong position relative to peers.
How does Terragen Holdings' Gross Margin % compare to CTVA and CF?
According to the Agriculture industry distribution chart, Terragen Holdings ranks #11 out of 247 companies for Gross Margin %. This places Terragen Holdings in the top 5% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 24.81. Terragen Holdings' value of 66.07% is 166.3% above this benchmark. Historically, Terragen Holdings' own Gross Margin % has ranged from 49.04 to 98.02 over the past decade. While the company's 10-year median is 88.91 vs. the industry median of 24.81, Terragen Holdings 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 an Agriculture company?
The median Gross Margin % among Agriculture companies is 24.81, based on 247 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. Terragen Holdings's current Gross Margin % of 66.07% is 166.3% 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 Terragen Holdings and its competitors. For the Agriculture industry, the median Gross Margin % is 24.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Terragen Holdings's current Gross Margin % is 66.07%, which is 26% below median its own 10-year median of 88.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Terragen Holdings stock overvalued right now?
Based on GuruFocus' analysis, Terragen Holdings (ASX:TGH) is currently considered Significantly Overvalued. The stock's GF Value™ is A$0.01, compared to a current price of A$0.02 — trading 80% above its estimated fair value. The current Gross Margin % is 66.07%, which is 26% below median its 10-year median of 88.91 and 166.3% above the Agriculture industry median of 24.81. 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 Terragen Holdings (ASX:TGH), the current Gross Margin % is 66.07% 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.
Terragen Holdings Ltd is an Australia-based developer of agricultural bio solutions. Its core technology platform addresses soil health and productivity, animal health, and nutrition without relying on chemical-based fertilizers, pesticides, and antibiotics. Its products include Mylo and Great Land Plus. Geographically, it operates within Australia and New Zealand.
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