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Sterling Group Holdings (HKSE:01825) 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
Sterling Group Holdings had a gross margin of 18.81% 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.
Sterling Group Holdings Gross Margin % Related Terms
Sterling Group Holdings 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.
HKSE:01825 vs RL, LEVI, VFC: Gross Margin % Comparison
For the Apparel Manufacturing subindustry, Sterling Group Holdings'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.
Sterling Group Holdings Gross Margin % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Sterling Group Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sterling Group Holdings'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.
Sterling Group Holdings (HKSE:01825) has a Gross Margin % of 18.81% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Sterling Group Holdings and its competitors. This is 13% above median its historical median of 16.60. Over the past decade, Sterling Group Holdings' Gross Margin % has ranged from 11.81 to 18.85.
Is Sterling Group Holdings' Gross Margin % too high?
Sterling Group Holdings' current Gross Margin % of 18.81% is 13% above median its 10-year median of 16.60. Over the past 10 years, this metric has ranged from a low of 11.81 to a high of 18.85. The Manufacturing - Apparel & Accessories industry median Gross Margin % is 28.60. Sterling Group Holdings' value of 18.81% is 34.2% below this industry median. Overall, Sterling Group Holdings has a GF Score™ of 45/100, reflecting its overall financial health beyond just this single metric.
How does Sterling Group Holdings' Gross Margin % compare to RL and LEVI?
Sterling Group Holdings' Gross Margin % of 18.81% can be compared against companies in the Manufacturing - Apparel & Accessories industry. The industry median Gross Margin % is 28.60. Sterling Group Holdings' value of 18.81% is 34.2% below this benchmark. Historically, Sterling Group Holdings' own Gross Margin % has ranged from 11.81 to 18.85 over the past decade. While the company's 10-year median is 16.60 vs. the industry median of 28.60, Sterling Group Holdings 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 Manufacturing - Apparel & Accessories company?
The median Gross Margin % among Manufacturing - Apparel & Accessories companies is 28.60, based on 1,030 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. Sterling Group Holdings's current Gross Margin % of 18.81% is 34.2% 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 Sterling Group Holdings and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Gross Margin % is 28.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sterling Group Holdings's current Gross Margin % is 18.81%, which is 13% above median its own 10-year median of 16.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sterling Group Holdings stock overvalued right now?
Sterling Group Holdings (HKSE:01825) has a current Gross Margin % of 18.81%. The stock's GF Value™ is HK$0.52, compared to a current price of HK$8.08 — trading 1453.8% above its estimated fair value. The current Gross Margin % is 18.81%, which is 13% above median its 10-year median of 16.60 and 34.2% below the Manufacturing - Apparel & Accessories industry median of 28.60. Sterling Group Holdings' overall GF Score™ is 45/100 with 8 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 Sterling Group Holdings (HKSE:01825), the current Gross Margin % is 18.81% 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 Sterling Group Holdings (HKSE:01825) Overvalued in 2026?
Based on GuruFocus' analysis, Sterling Group Holdings stock appears to be overvalued.
The current stock price of HK$8.08 is trading 1453.8% above its estimated GF Value™ of HK$0.52.
Key valuation signals for HKSE:01825:
Gross Margin %: 18.81% (13% above median its 10-year median of 16.60)
GF Value™: HK$0.52 vs. price of HK$8.08 (1453.8% above fair value)
Industry Position: 34.2% below the Manufacturing - Apparel & Accessories median
No single metric tells the full story. See the HKSE:01825 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sterling Group Holdings Ltd is an apparel manufacturer headquartered in Hong Kong, providing a one-stop apparel manufacturing solution for its customers. The Group manufactures a wide range of apparel products such as outerwear, bottoms, tops, and other products. The company operates through two segments: Manufacturing and trading of apparel products, and Licensing of trademarks for licensing income. It generates the majority of its revenue from the Manufacturing and trading of apparel products. Its geographic areas are Hong Kong, the United States, and Others. The group generates the majority of its revenue from the United States.
45GF Score
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