Peab ABFRA:PEKB +0.18%21 Gross Margin % is 4.08% as of Mar. 2026, which is 57% below its 10-year median of 9.56. GuruFocus rates FRA:PEKB with a GF Score™ of 21/100 and a GF Value™ of €6.78 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,724 Construction companies, Peab AB ranks worse than 81.79% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Peab AB's Gross Profit for the
three
months ended in Mar. 2026 was €41 Mil. Peab AB's Revenue for the
three
months ended in Mar. 2026 was €1,006 Mil. Therefore, Peab AB's Gross Margin % for the quarter that ended in Mar. 2026 was 4.08%.
Warning Sign:
Peab AB gross margin has been in long-term decline. The average rate of decline per year is -1.6%.
The historical rank and industry rank for Peab AB's Gross Margin % or its related term are showing as below:
FRA:PEKB'
s Gross Margin % Range Over the Past 10 Years
Min: 8.83 Med: 9.56 Max: 10.64
Current: 9.49
During the past 13 years, the highestGross Margin % of Peab AB was 10.64%. The lowest was 8.83%. And the median was 9.56%.
FRA:PEKB's Gross Margin % is ranked worse than 81.79% of 1724
companies
in the Construction industry
Industry Median: 20.705
vs FRA:PEKB: 9.49
Peab AB had a gross margin of 4.08% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Peab AB was -1.60% per year.
Peab AB (FRA:PEKB) 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
Peab AB had a gross margin of 4.08% for the quarter that ended in Mar. 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.
Peab AB Gross Margin % Related Terms
Peab AB Gross Margin % Historical Data
* Premium members only.
The historical data trend for Peab AB'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.
FRA:PEKB vs PWR, FIX, EME: Gross Margin % Comparison
For the Engineering & Construction subindustry, Peab AB'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.
Peab AB Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Peab AB's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Peab AB'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.
Peab AB (FRA:PEKB) has a Gross Margin % of 4.08% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Peab AB and its competitors. This is 57% below median its historical median of 9.56. Over the past decade, Peab AB's Gross Margin % has ranged from 8.83 to 10.64. According to the industry distribution chart, Peab AB ranks #1410 out of 1724 companies in the Construction industry, placing it in the top 81.8%.
Is Peab AB's Gross Margin % too high?
Peab AB's current Gross Margin % of 4.08% is 57% below median its 10-year median of 9.56. Over the past 10 years, this metric has ranged from a low of 8.83 to a high of 10.64. The Construction industry median Gross Margin % is 20.71. Peab AB's value of 4.08% is 80.3% below this industry median. Based on the distribution chart, Peab AB ranks #1410 out of 1724 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, Peab AB has a GF Score™ of 21/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Peab AB's Gross Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Peab AB ranks #1410 out of 1724 companies for Gross Margin %. This places Peab AB in the lower half of its industry. The industry median Gross Margin % is 20.71. Peab AB's value of 4.08% is 80.3% below this benchmark. Historically, Peab AB's own Gross Margin % has ranged from 8.83 to 10.64 over the past decade. While the company's 10-year median is 9.56 vs. the industry median of 20.71, Peab AB 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 1,724 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. Peab AB's current Gross Margin % of 4.08% is 80.3% 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 Peab AB 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. Peab AB's current Gross Margin % is 4.08%, which is 57% below median its own 10-year median of 9.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Peab AB stock overvalued right now?
Based on GuruFocus' analysis, Peab AB (FRA:PEKB) is currently considered Modestly Overvalued. The stock's GF Value™ is €6.78, compared to a current price of €8.17 — trading 20.4% above its estimated fair value. The current Gross Margin % is 4.08%, which is 57% below median its 10-year median of 9.56 and 80.3% below the Construction industry median of 20.71. Peab AB's overall GF Score™ is 21/100 with 5 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 Peab AB (FRA:PEKB), the current Gross Margin % is 4.08% as of Mar. 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 Peab AB (FRA:PEKB) Overvalued in 2026?
Based on GuruFocus' analysis, Peab AB stock appears to be overvalued.
The current stock price of €8.17 is trading 20.4% above its estimated GF Value™ of €6.78.
GuruFocus considers Peab AB to be Modestly Overvalued.
Key valuation signals for FRA:PEKB:
Gross Margin %: 4.08% (57% below median its 10-year median of 9.56)
GF Value™: €6.78 vs. price of €8.17 (20.4% above fair value)
Industry Position: 80.3% below the Construction median (#1410 of 1724)
No single metric tells the full story. See the FRA:PEKB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Peab AB is a Sweden-based construction and civil engineering company. It builds offices around the region and contributes to all stages of construction. Many projects are related to housing, transportation, commercial property, and building materials. It operates in four business areas: Construction, Civil Engineering, Industry, and Project Development. It uses technical expertise and input from customers to complete projects and deliver customized solutions. The majority of sales come from Sweden, and it also operates in Finland and Norway.
21GF Score
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