SCG Construction Group JSC (HSTC:SCG) 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
SCG Construction Group JSC had a gross margin of 13.53% 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.
SCG Construction Group JSC Gross Margin % Related Terms
SCG Construction Group JSC 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.
HSTC:SCG vs PWR, FIX, EME: Gross Margin % Comparison
For the Engineering & Construction subindustry, SCG Construction Group JSC'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.
SCG Construction Group JSC Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, SCG Construction Group JSC's Gross Margin % distribution charts can be found below:
* The bar in red indicates where SCG Construction Group JSC'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.
SCG Construction Group JSC (HSTC:SCG) has a Gross Margin % of 13.53% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on SCG Construction Group JSC and its competitors. This is 67% above median its historical median of 8.11. Over the past decade, SCG Construction Group JSC's Gross Margin % has ranged from 6.67 to 9.98. According to the industry distribution chart, SCG Construction Group JSC ranks #1462 out of 1719 companies in the Construction industry, placing it in the top 85%.
Is SCG Construction Group JSC's Gross Margin % too high?
SCG Construction Group JSC's current Gross Margin % of 13.53% is 67% above median its 10-year median of 8.11. Over the past 10 years, this metric has ranged from a low of 6.67 to a high of 9.98. The Construction industry median Gross Margin % is 20.71. SCG Construction Group JSC's value of 13.53% is 34.7% below this industry median. Based on the distribution chart, SCG Construction Group JSC ranks #1462 out of 1719 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, SCG Construction Group JSC has a GF Score™ of 78/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does SCG Construction Group JSC's Gross Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, SCG Construction Group JSC ranks #1462 out of 1719 companies for Gross Margin %. This places SCG Construction Group JSC in the lower half of its industry. The industry median Gross Margin % is 20.71. SCG Construction Group JSC's value of 13.53% is 34.7% below this benchmark. Historically, SCG Construction Group JSC's own Gross Margin % has ranged from 6.67 to 9.98 over the past decade. While the company's 10-year median is 8.11 vs. the industry median of 20.71, SCG Construction Group JSC 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 1,719 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. SCG Construction Group JSC's current Gross Margin % of 13.53% is 34.7% 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 SCG Construction Group JSC 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. SCG Construction Group JSC's current Gross Margin % is 13.53%, which is 67% above median its own 10-year median of 8.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SCG Construction Group JSC stock overvalued right now?
Based on GuruFocus' analysis, SCG Construction Group JSC (HSTC:SCG) is currently considered Possible Value Trap. The stock's GF Value™ is ₫280,764.97, compared to a current price of ₫64,800.00 — trading 76.9% below its estimated fair value. The current Gross Margin % is 13.53%, which is 67% above median its 10-year median of 8.11 and 34.7% below the Construction industry median of 20.71. SCG Construction Group JSC's overall GF Score™ is 78/100 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 SCG Construction Group JSC (HSTC:SCG), the current Gross Margin % is 13.53% 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 SCG Construction Group JSC (HSTC:SCG) Overvalued in 2026?
Based on GuruFocus' analysis, SCG Construction Group JSC stock appears to be undervalued.
The current stock price of ₫64,800.00 is trading 76.9% below its estimated GF Value™ of ₫280,764.97.
GuruFocus considers SCG Construction Group JSC to be Possible Value Trap.
Key valuation signals for HSTC:SCG:
Gross Margin %: 13.53% (67% above median its 10-year median of 8.11)
GF Value™: ₫280,764.97 vs. price of ₫64,800.00 (76.9% below fair value)
Industry Position: 34.7% below the Construction median (#1462 of 1719)
No single metric tells the full story. See the HSTC:SCG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SCG Construction Group JSC is a construction corporation in Vietnam. The Diverse construction fields include high-rise buildings, urban areas, industry, infrastructure, seaports, airports, public works. The company prioritizes development in areas with growth potential in infrastructure, real estate, and industry, thereby optimizing investment opportunities and expanding its network of clients and partners.
78GF 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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