Smiths NewsCHIX:SNWSL +0.30%53 Gross Margin % is 7.25% as of Feb. 2026, which is 9% above its 10-year median of 6.64. GuruFocus rates CHIX:SNWSL with a GF Score™ of 53/100 and a GF Value™ of £0.54 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 946 Media - Diversified companies, Smiths News ranks worse than 91.33% on this metric.
The historical rank and industry rank for Smiths News's Gross Margin % or its related term are showing as below:
CHIX:SNWSl'
s Gross Margin % Range Over the Past 10 Years
Min: 6.26 Med: 6.64 Max: 16.63
Current: 7.21
During the past 13 years, the highestGross Margin % of Smiths News was 16.63%. The lowest was 6.26%. And the median was 6.64%.
CHIX:SNWSl's Gross Margin % is ranked worse than 91.33% of 946
companies
in the Media - Diversified industry
Industry Median: 38.91
vs CHIX:SNWSl: 7.21
Smiths News had a gross margin of 7.25% for the quarter that ended in Feb. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Smiths News was 1.80% per year.
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
Smiths News had a gross margin of 7.25% for the quarter that ended in Feb. 2026 => 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.
Smiths News Gross Margin % Related Terms
Smiths News Gross Margin % Historical Data
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The historical data trend for Smiths News'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.
For the Publishing subindustry, Smiths News'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.
Smiths News Gross Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Smiths News's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Smiths News'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.
Smiths News (CHIX:SNWSL) has a Gross Margin % of 7.25% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Smiths News and its competitors. This is near median its historical median of 6.64. Over the past decade, Smiths News' Gross Margin % has ranged from 6.26 to 16.63. According to the industry distribution chart, Smiths News ranks #864 out of 946 companies in the Media - Diversified industry, placing it in the top 91.3%.
Is Smiths News' Gross Margin % too high?
Smiths News' current Gross Margin % of 7.25% is near median its 10-year median of 6.64. Over the past 10 years, this metric has ranged from a low of 6.26 to a high of 16.63. The Media - Diversified industry median Gross Margin % is 38.91. Smiths News' value of 7.25% is 81.4% below this industry median. Based on the distribution chart, Smiths News ranks #864 out of 946 companies in the Media - Diversified industry, which is in the bottom quartile relative to peers. Overall, Smiths News has a GF Score™ of 53/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Smiths News' Gross Margin % compare to NYT and WLY?
According to the Media - Diversified industry distribution chart, Smiths News ranks #864 out of 946 companies for Gross Margin %. This places Smiths News in the lower half of its industry. The industry median Gross Margin % is 38.91. Smiths News' value of 7.25% is 81.4% below this benchmark. Historically, Smiths News' own Gross Margin % has ranged from 6.26 to 16.63 over the past decade. While the company's 10-year median is 6.64 vs. the industry median of 38.91, Smiths News 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 Media - Diversified company?
The median Gross Margin % among Media - Diversified companies is 38.91, based on 946 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. Smiths News's current Gross Margin % of 7.25% is 81.4% 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 Smiths News and its competitors. For the Media - Diversified industry, the median Gross Margin % is 38.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Smiths News's current Gross Margin % is 7.25%, which is near median its own 10-year median of 6.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Smiths News stock overvalued right now?
Based on GuruFocus' analysis, Smiths News (CHIX:SNWSL) is currently considered Modestly Overvalued. The stock's GF Value™ is £0.54, compared to a current price of £0.67 — trading 24.8% above its estimated fair value. The current Gross Margin % is 7.25%, which is near median its 10-year median of 6.64 and 81.4% below the Media - Diversified industry median of 38.91. Smiths News' overall GF Score™ is 53/100 with 2 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 Smiths News (CHIX:SNWSL), the current Gross Margin % is 7.25% as of Feb. 2026. 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 Smiths News (CHIX:SNWSL) Overvalued in 2026?
Based on GuruFocus' analysis, Smiths News stock appears to be overvalued.
The current stock price of £0.67 is trading 24.8% above its estimated GF Value™ of £0.54.
GuruFocus considers Smiths News to be Modestly Overvalued.
Key valuation signals for CHIX:SNWSL:
Gross Margin %: 7.25% (near median its 10-year median of 6.64)
GF Value™: £0.54 vs. price of £0.67 (24.8% above fair value)
Industry Position: 81.4% below the Media - Diversified median (#864 of 946)
No single metric tells the full story. See the CHIX:SNWSL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Smiths News PLC is a UK wholesaler of newspapers and magazines, providing nationwide early-morning distribution and logistics services. The company supplies newspapers, magazines, and related products to a wide network of retail outlets, supported by integrated services such as warehousing, pick-and-pack, returns collection, recycling, invoicing, and market insight. Operating through a hub-and-spoke distribution network across England and Wales, Smiths News delivers seven days a week, reaching locations from urban centres to remote rural communities, and also offers recycling and waste management solutions through its dedicated recycling operations.
53GF Score
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