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Babcock & Wilcox EnterprisesFRA:UBW1 -3.61%50 Gross Margin % is 14.59% as of Jun. 2026, which is 31% below its 10-year median of 21.25. GuruFocus rates FRA:UBW1 with a GF Score™ of 50/100 and a GF Value™ of €1.88 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 3,011 Industrial Products companies, Babcock & Wilcox Enterprises ranks worse than 69.38% 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
Babcock & Wilcox Enterprises had a gross margin of 14.59% for the quarter that ended in Jun. 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.
Babcock & Wilcox Enterprises Gross Margin % Related Terms
Babcock & Wilcox Enterprises Gross Margin % Historical Data
* 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:UBW1 vs GHM, NNE, TNC: Gross Margin % Comparison
For the Specialty Industrial Machinery subindustry, Babcock & Wilcox Enterprises'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.
Babcock & Wilcox Enterprises Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Babcock & Wilcox Enterprises's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Babcock & Wilcox Enterprises'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.
Babcock & Wilcox Enterprises (FRA:UBW1) has a Gross Margin % of 14.59% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Babcock & Wilcox Enterprises and its competitors. This is 31% below median its historical median of 21.25. According to the industry distribution chart, Babcock & Wilcox Enterprises ranks #2089 out of 3011 companies in the Industrial Products industry, placing it in the top 69.4%.
Is Babcock & Wilcox Enterprises' Gross Margin % too high?
Babcock & Wilcox Enterprises' current Gross Margin % of 14.59% is 31% below median its 10-year median of 21.25. The Industrial Products industry median Gross Margin % is 26.85. Babcock & Wilcox Enterprises' value of 14.59% is 45.7% below this industry median. Based on the distribution chart, Babcock & Wilcox Enterprises ranks #2089 out of 3011 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Babcock & Wilcox Enterprises has a GF Score™ of 50/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Babcock & Wilcox Enterprises' Gross Margin % compare to GHM and NNE?
According to the Industrial Products industry distribution chart, Babcock & Wilcox Enterprises ranks #2089 out of 3011 companies for Gross Margin %. This places Babcock & Wilcox Enterprises in the lower half of its industry. The industry median Gross Margin % is 26.85. Babcock & Wilcox Enterprises' value of 14.59% is 45.7% below this benchmark. While the company's 10-year median is 21.25 vs. the industry median of 26.85, Babcock & Wilcox Enterprises 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.85, based on 3,011 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. Babcock & Wilcox Enterprises's current Gross Margin % of 14.59% is 45.7% 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 Babcock & Wilcox Enterprises and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Babcock & Wilcox Enterprises's current Gross Margin % is 14.59%, which is 31% below median its own 10-year median of 21.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Babcock & Wilcox Enterprises stock overvalued right now?
Based on GuruFocus' analysis, Babcock & Wilcox Enterprises (FRA:UBW1) is currently considered Significantly Overvalued. The stock's GF Value™ is €1.88, compared to a current price of €5.75 — trading 205.6% above its estimated fair value. The current Gross Margin % is 14.59%, which is 31% below median its 10-year median of 21.25 and 45.7% below the Industrial Products industry median of 26.85. Babcock & Wilcox Enterprises' overall GF Score™ is 50/100 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 Babcock & Wilcox Enterprises (FRA:UBW1), the current Gross Margin % is 14.59% as of Jun. 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 Babcock & Wilcox Enterprises (FRA:UBW1) Overvalued in 2026?
Based on GuruFocus' analysis, Babcock & Wilcox Enterprises stock appears to be overvalued.
The current stock price of €5.75 is trading 205.6% above its estimated GF Value™ of €1.88.
GuruFocus considers Babcock & Wilcox Enterprises to be Significantly Overvalued.
Key valuation signals for FRA:UBW1:
Gross Margin %: 14.59% (31% below median its 10-year median of 21.25)
GF Value™: €1.88 vs. price of €5.75 (205.6% above fair value)
Industry Position: 45.7% below the Industrial Products median (#2089 of 3011)
No single metric tells the full story. See the FRA:UBW1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Babcock & Wilcox Enterprises Inc is an energy technologies provider offering energy and emissions control solutions to a broad range of industrial, electrical utility, municipal, and other customers. It offers technologies that utilize coal, natural gas, hydrogen, waste, and biomass to produce energy, environmental solutions, and carbon capture systems. The company's product portfolio comprises steam generation systems, environmental solutions, combustion and fuel systems, and related equipment and services. Additionally, it offers specialized technologies (BrightLoop) in industrial energy production, including hydrogen and syngas. Geographically, the company generates maximum revenue from the United States, and the rest from Canada, the UK, Indonesia, the Philippines, and other markets.
50GF Score
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