WatercoASX:WAT 84 Gross Margin % is 49.12% as of Dec. 2025, which is 0% above its 10-year median of 49.11. GuruFocus rates ASX:WAT with a GF Score™ of 84/100 and a GF Value™ of A$7.63 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 3,003 Industrial Products companies, Waterco ranks better than 88.44% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Waterco's Gross Profit for the
six
months ended in Dec. 2025 was A$64.0 Mil. Waterco's Revenue for the
six
months ended in Dec. 2025 was A$130.3 Mil. Therefore, Waterco's Gross Margin % for the quarter that ended in Dec. 2025 was 49.12%.
The historical rank and industry rank for Waterco's Gross Margin % or its related term are showing as below:
ASX:WAT'
s Gross Margin % Range Over the Past 10 Years
Min: 45.54 Med: 49.11 Max: 51.85
Current: 48.84
During the past 13 years, the highestGross Margin % of Waterco was 51.85%. The lowest was 45.54%. And the median was 49.11%.
ASX:WAT's Gross Margin % is ranked better than 88.44% of 3003
companies
in the Industrial Products industry
Industry Median: 26.79
vs ASX:WAT: 48.84
Waterco had a gross margin of 49.12% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Waterco was 0.10% per year.
Waterco (ASX:WAT) 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
Waterco had a gross margin of 49.12% 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.
Waterco Gross Margin % Related Terms
Waterco Gross Margin % Historical Data
* Premium members only.
The historical data trend for Waterco'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:WAT vs VLTO, ZWS, CECO: Gross Margin % Comparison
For the Pollution & Treatment Controls subindustry, Waterco'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.
Waterco Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Waterco's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Waterco'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.
Waterco (ASX:WAT) has a Gross Margin % of 49.12% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Waterco and its competitors. This is near median its historical median of 49.11. Over the past decade, Waterco's Gross Margin % has ranged from 45.54 to 51.85. According to the industry distribution chart, Waterco ranks #347 out of 3003 companies in the Industrial Products industry, placing it in the top 11.6%.
Is Waterco's Gross Margin % too high?
Waterco's current Gross Margin % of 49.12% is near median its 10-year median of 49.11. Over the past 10 years, this metric has ranged from a low of 45.54 to a high of 51.85. The Industrial Products industry median Gross Margin % is 26.79. Waterco's value of 49.12% is 83.4% above this industry median. Based on the distribution chart, Waterco ranks #347 out of 3003 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Waterco has a GF Score™ of 84/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Waterco's Gross Margin % compare to VLTO and ZWS?
According to the Industrial Products industry distribution chart, Waterco ranks #347 out of 3003 companies for Gross Margin %. This places Waterco in the top 12% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 26.79. Waterco's value of 49.12% is 83.4% above this benchmark. Historically, Waterco's own Gross Margin % has ranged from 45.54 to 51.85 over the past decade. While the company's 10-year median is 49.11 vs. the industry median of 26.79, Waterco 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 Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.79, based on 3,003 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. Waterco's current Gross Margin % of 49.12% is 83.4% 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 Waterco and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Waterco's current Gross Margin % is 49.12%, which is near median its own 10-year median of 49.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Waterco stock overvalued right now?
Based on GuruFocus' analysis, Waterco (ASX:WAT) is currently considered Significantly Undervalued. The stock's GF Value™ is A$7.63, compared to a current price of A$5.20 — trading 31.8% below its estimated fair value. The current Gross Margin % is 49.12%, which is near median its 10-year median of 49.11 and 83.4% above the Industrial Products industry median of 26.79. Waterco's overall GF Score™ is 84/100 with 4 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 Waterco (ASX:WAT), the current Gross Margin % is 49.12% 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 Waterco (ASX:WAT) Overvalued in 2026?
Based on GuruFocus' analysis, Waterco stock appears to be undervalued.
The current stock price of A$5.20 is trading 31.8% below its estimated GF Value™ of A$7.63.
GuruFocus considers Waterco to be Significantly Undervalued.
Key valuation signals for ASX:WAT:
Gross Margin %: 49.12% (near median its 10-year median of 49.11)
GF Value™: A$7.63 vs. price of A$5.20 (31.8% below fair value)
Industry Position: 83.4% above the Industrial Products median (#347 of 3003)
No single metric tells the full story. See the ASX:WAT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Waterco Ltd designs, manufactures, and distributes filtration and sanitisation products for swimming pools, spas, aquaculture, and water purification sectors. The company serves residential, commercial, and industrial markets in various countries. Waterco operates manufacturing and R&D facilities in Australia, New Zealand, Malaysia, China, and other countries. It also franchises Swimart, a pool and spa retail network in Australia and New Zealand, and is the exclusive distributor of Zane Solar Pool Heating systems. Waterco's product range includes pool equipment, water treatment systems, chemicals, and solar heating solutions. The company generates revenue predominantly through the sales of pool and spa equipment, water treatment systems, and franchising operations.
84GF Score
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