Downer EDIDNERY -8.46%62 Gross Margin % is 87.63% as of Dec. 2025, which is 3% above its 10-year median of 84.80. GuruFocus rates DNERY with a GF Score™ of 62/100 and a GF Value™ of $3.32. The stock has 7 warning signs investors should review. Among 1,724 Construction companies, Downer EDI ranks better than 97.51% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Downer EDI's Gross Profit for the
six
months ended in Dec. 2025 was $2,810 Mil. Downer EDI's Revenue for the
six
months ended in Dec. 2025 was $3,206 Mil. Therefore, Downer EDI's Gross Margin % for the quarter that ended in Dec. 2025 was 87.63%.
The historical rank and industry rank for Downer EDI's Gross Margin % or its related term are showing as below:
DNERY'
s Gross Margin % Range Over the Past 10 Years
Min: 81.27 Med: 84.8 Max: 88.15
Current: 85.45
During the past 13 years, the highestGross Margin % of Downer EDI was 88.15%. The lowest was 81.27%. And the median was 84.80%.
DNERY's Gross Margin % is ranked better than 97.51% of 1724
companies
in the Construction industry
Industry Median: 20.705
vs DNERY: 85.45
Downer EDI had a gross margin of 87.63% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Downer EDI was 0.80% per year.
Downer EDI (OTCPK:DNERY) 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
Downer EDI had a gross margin of 87.63% 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.
Downer EDI Gross Margin % Related Terms
Downer EDI Gross Margin % Historical Data
* Premium members only.
The historical data trend for Downer EDI'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 Engineering & Construction subindustry, Downer EDI'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.
Downer EDI Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Downer EDI's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Downer EDI'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.
Downer EDI (DNERY) has a Gross Margin % of 87.63% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Downer EDI and its competitors. This is near median its historical median of 84.80. Over the past decade, Downer EDI's Gross Margin % has ranged from 81.27 to 88.15. According to the industry distribution chart, Downer EDI ranks #43 out of 1724 companies in the Construction industry, placing it in the top 2.5%.
Is Downer EDI's Gross Margin % too high?
Downer EDI's current Gross Margin % of 87.63% is near median its 10-year median of 84.80. Over the past 10 years, this metric has ranged from a low of 81.27 to a high of 88.15. The Construction industry median Gross Margin % is 20.71. Downer EDI's value of 87.63% is 323.2% above this industry median. Based on the distribution chart, Downer EDI ranks #43 out of 1724 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Downer EDI has a GF Score™ of 62/100, reflecting its overall financial health beyond just this single metric.
How does Downer EDI's Gross Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Downer EDI ranks #43 out of 1724 companies for Gross Margin %. This places Downer EDI in the top 3% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 20.71. Downer EDI's value of 87.63% is 323.2% above this benchmark. Historically, Downer EDI's own Gross Margin % has ranged from 81.27 to 88.15 over the past decade. While the company's 10-year median is 84.80 vs. the industry median of 20.71, Downer EDI 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 Construction company?
The median Gross Margin % among Construction companies is 20.71, based on 1,724 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. Downer EDI's current Gross Margin % of 87.63% is 323.2% 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 Downer EDI 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. Downer EDI's current Gross Margin % is 87.63%, which is near median its own 10-year median of 84.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Downer EDI stock overvalued right now?
Downer EDI (DNERY) has a current Gross Margin % of 87.63%. The stock's GF Value™ is $3.32, compared to a current price of $5.95 — trading 79.2% above its estimated fair value. The current Gross Margin % is 87.63%, which is near median its 10-year median of 84.80 and 323.2% above the Construction industry median of 20.71. Downer EDI's overall GF Score™ is 62/100 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 Downer EDI (DNERY), the current Gross Margin % is 87.63% 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 Downer EDI (DNERY) Overvalued in 2026?
Based on GuruFocus' analysis, Downer EDI stock appears to be overvalued.
The current stock price of $5.95 is trading 79.2% above its estimated GF Value™ of $3.32.
Key valuation signals for DNERY:
Gross Margin %: 87.63% (near median its 10-year median of 84.80)
GF Value™: $3.32 vs. price of $5.95 (79.2% above fair value)
Industry Position: 323.2% above the Construction median (#43 of 1724)
No single metric tells the full story. See the DNERY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Downer conducts construction and maintenance in the transport, technology and communications, utilities, rail, and defense segments. The future of Downer is focused on urban services, with mining and higher-risk construction businesses exited. Downer has strong relationships with local and state governments that outsource operational and management activities, ensuring a relatively consistent stream of recurring contract work. The transport segment contributes the majority of earnings.
62GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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