WestStar IndustrialASX:WSI Gross Margin % is 11.75% as of Dec. 2025, which is 19% below its 10-year median of 14.48. The stock has 4 warning signs investors should review. Among 1,719 Construction companies, WestStar Industrial ranks worse than 71.26% 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
WestStar Industrial had a gross margin of 11.75% for the quarter that ended in Dec. 2025 => No sustainable 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.
WestStar Industrial Gross Margin % Related Terms
WestStar Industrial Gross Margin % Historical Data
* Premium members only.
The historical data trend for WestStar Industrial'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:WSI vs PWR, FIX, EME: Gross Margin % Comparison
For the Engineering & Construction subindustry, WestStar Industrial'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.
WestStar Industrial Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, WestStar Industrial's Gross Margin % distribution charts can be found below:
* The bar in red indicates where WestStar Industrial'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.
WestStar Industrial (ASX:WSI) has a Gross Margin % of 11.75% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on WestStar Industrial and its competitors. This is 19% below median its historical median of 14.48. Over the past decade, WestStar Industrial's Gross Margin % has ranged from 6.38 to 21.57. According to the industry distribution chart, WestStar Industrial ranks #1225 out of 1719 companies in the Construction industry, placing it in the top 71.3%.
Is WestStar Industrial's Gross Margin % too high?
WestStar Industrial's current Gross Margin % of 11.75% is 19% below median its 10-year median of 14.48. Over the past 10 years, this metric has ranged from a low of 6.38 to a high of 21.57. The Construction industry median Gross Margin % is 20.71. WestStar Industrial's value of 11.75% is 43.3% below this industry median. Based on the distribution chart, WestStar Industrial ranks #1225 out of 1719 companies in the Construction industry, which is below the industry midpoint.
How does WestStar Industrial's Gross Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, WestStar Industrial ranks #1225 out of 1719 companies for Gross Margin %. This places WestStar Industrial in the lower half of its industry. The industry median Gross Margin % is 20.71. WestStar Industrial's value of 11.75% is 43.3% below this benchmark. Historically, WestStar Industrial's own Gross Margin % has ranged from 6.38 to 21.57 over the past decade. While the company's 10-year median is 14.48 vs. the industry median of 20.71, WestStar Industrial has consistently been below 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 Construction company?
The median Gross Margin % among Construction companies is 20.71, based on 1,719 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. WestStar Industrial's current Gross Margin % of 11.75% is 43.3% below 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 WestStar Industrial and its competitors. For the Construction industry, the median Gross Margin % is 20.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. WestStar Industrial's current Gross Margin % is 11.75%, which is 19% below median its own 10-year median of 14.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is WestStar Industrial stock overvalued right now?
Based on GuruFocus' analysis, WestStar Industrial (ASX:WSI) is currently considered Modestly Overvalued. The stock's GF Value™ is A$0.05, compared to a current price of A$0.06 — trading 18% above its estimated fair value. The current Gross Margin % is 11.75%, which is 19% below median its 10-year median of 14.48 and 43.3% below the Construction industry median of 20.71. 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 WestStar Industrial (ASX:WSI), the current Gross Margin % is 11.75% 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.
WestStar Industrial Ltd is an Australian company offering industrial project solutions in engineering, fabrication, construction, and maintenance across sectors such as resources, energy, oil and gas, petrochemical, water, marine, defence, and infrastructure. The company operates through three segments: SIMPEC, Alltype Engineering, and Watmar Engineering. SIMPEC specializes in structural, mechanical, piping, electrical, and instrumentation contracting. Alltype Engineering provides workshop services, site installation, construction, and maintenance across various industries. Watmar Engineering focuses on fluid systems engineering for the defence and marine sectors. The majority of the company's revenue is generated from the Alltype segment.
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