SappiFRA:SPI -1.96%52 Gross Margin % is -3.30% as of Mar. 2026. GuruFocus rates FRA:SPI with a GF Score™ of 52/100 and a GF Value™ of €1.74 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 279 Forest Products companies, Sappi ranks worse than 87.81% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Sappi's Gross Profit for the
three
months ended in Mar. 2026 was €-38 Mil. Sappi's Revenue for the
three
months ended in Mar. 2026 was €1,154 Mil. Therefore, Sappi's Gross Margin % for the quarter that ended in Mar. 2026 was -3.30%.
The historical rank and industry rank for Sappi's Gross Margin % or its related term are showing as below:
FRA:SPI'
s Gross Margin % Range Over the Past 10 Years
Min: 4.47 Med: 14.67 Max: 18.78
Current: 4.47
During the past 13 years, the highestGross Margin % of Sappi was 18.78%. The lowest was 4.47%. And the median was 14.67%.
FRA:SPI's Gross Margin % is ranked worse than 87.81% of 279
companies
in the Forest Products industry
Industry Median: 19.05
vs FRA:SPI: 4.47
Sappi had a gross margin of -3.30% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Sappi was 4.10% per year.
Sappi (FRA:SPI) 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
Sappi had a gross margin of -3.30% 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.
Sappi Gross Margin % Related Terms
Sappi Gross Margin % Historical Data
* Premium members only.
The historical data trend for Sappi'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 Paper & Paper Products subindustry, Sappi'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.
Sappi Gross Margin % vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Sappi's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sappi'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.
Sappi (FRA:SPI) has a Gross Margin % of -3.30% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Sappi and its competitors. Over the past decade, Sappi's Gross Margin % has ranged from 4.47 to 18.78. According to the industry distribution chart, Sappi ranks #245 out of 279 companies in the Forest Products industry, placing it in the top 87.8%.
Is Sappi's Gross Margin % too high?
Sappi's current Gross Margin % is -3.30%. Over the past 10 years, this metric has ranged from a low of 4.47 to a high of 18.78. Based on the distribution chart, Sappi ranks #245 out of 279 companies in the Forest Products industry, which is in the bottom quartile relative to peers. Overall, Sappi has a GF Score™ of 52/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Sappi's Gross Margin % compare to SLVM?
According to the Forest Products industry distribution chart, Sappi ranks #245 out of 279 companies for Gross Margin %. This places Sappi in the lower half of its industry. The industry median Gross Margin % is 19.05. Historically, Sappi's own Gross Margin % has ranged from 4.47 to 18.78 over the past decade. 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 Forest Products company?
The median Gross Margin % among Forest Products companies is 19.05, based on 279 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. 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 Sappi and its competitors. For the Forest Products industry, the median Gross Margin % is 19.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sappi's current Gross Margin % is -3.30%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sappi stock overvalued right now?
Based on GuruFocus' analysis, Sappi (FRA:SPI) is currently considered Possible Value Trap. The stock's GF Value™ is €1.74, compared to a current price of €0.50 — trading 71.3% below its estimated fair value. The current Gross Margin % is -3.30%. Sappi's overall GF Score™ is 52/100 with 6 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 Sappi (FRA:SPI), the current Gross Margin % is -3.30% 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 Sappi (FRA:SPI) Overvalued in 2026?
Based on GuruFocus' analysis, Sappi stock appears to be undervalued.
The current stock price of €0.50 is trading 71.3% below its estimated GF Value™ of €1.74.
GuruFocus considers Sappi to be Possible Value Trap.
Key valuation signals for FRA:SPI:
Gross Margin %: -3.30%
GF Value™: €1.74 vs. price of €0.50 (71.3% below fair value)
No single metric tells the full story. See the FRA:SPI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sappi Ltd is engaged in the manufacturing of sustainable woodfibre-based products including specialty and packaging papers, graphic papers, release papers, pulp, and biomaterials like lignin and furfural from renewable resources. The products and services include Dissolving pulp, Graphic papers, Packaging and specialty papers, Casting and release papers, Biomaterials and Bio-energy. The company's geographical segments include Europe, North America and South Africa. The majority of revenue is generated from South Africa.
52GF Score
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