Sai Gon Water Infrastructure (HSTC:SII) 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
Sai Gon Water Infrastructure had a gross margin of 4.94% 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.
Sai Gon Water Infrastructure Gross Margin % Related Terms
Sai Gon Water Infrastructure 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:SII vs PWR, FIX, EME: Gross Margin % Comparison
For the Engineering & Construction subindustry, Sai Gon Water Infrastructure'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.
Sai Gon Water Infrastructure Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Sai Gon Water Infrastructure's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sai Gon Water Infrastructure'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.
Sai Gon Water Infrastructure (HSTC:SII) has a Gross Margin % of 4.94% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Sai Gon Water Infrastructure and its competitors. According to the industry distribution chart, Sai Gon Water Infrastructure ranks #1581 out of 1719 companies in the Construction industry, placing it in the top 92%.
Is Sai Gon Water Infrastructure's Gross Margin % too high?
Sai Gon Water Infrastructure's current Gross Margin % is 4.94%. The Construction industry median Gross Margin % is 20.71. Sai Gon Water Infrastructure's value of 4.94% is 76.1% below this industry median. Based on the distribution chart, Sai Gon Water Infrastructure ranks #1581 out of 1719 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, Sai Gon Water Infrastructure has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sai Gon Water Infrastructure's Gross Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Sai Gon Water Infrastructure ranks #1581 out of 1719 companies for Gross Margin %. This places Sai Gon Water Infrastructure in the lower half of its industry. The industry median Gross Margin % is 20.71. Sai Gon Water Infrastructure's value of 4.94% is 76.1% below this benchmark. 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. Sai Gon Water Infrastructure's current Gross Margin % of 4.94% is 76.1% 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 Sai Gon Water Infrastructure 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. Sai Gon Water Infrastructure's current Gross Margin % is 4.94%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sai Gon Water Infrastructure stock overvalued right now?
Based on GuruFocus' analysis, Sai Gon Water Infrastructure (HSTC:SII) is currently considered Modestly Undervalued. The stock's GF Value™ is ₫20,321.22, compared to a current price of ₫16,000.00 — trading 21.3% below its estimated fair value. The current Gross Margin % is 4.94% and 76.1% below the Construction industry median of 20.71. Sai Gon Water Infrastructure's overall GF Score™ is 76/100 with 1 warning sign 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 Sai Gon Water Infrastructure (HSTC:SII), the current Gross Margin % is 4.94% 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 Sai Gon Water Infrastructure (HSTC:SII) Overvalued in 2026?
Based on GuruFocus' analysis, Sai Gon Water Infrastructure stock appears to be undervalued.
The current stock price of ₫16,000.00 is trading 21.3% below its estimated GF Value™ of ₫20,321.22.
GuruFocus considers Sai Gon Water Infrastructure to be Modestly Undervalued.
Key valuation signals for HSTC:SII:
Gross Margin %: 4.94%
GF Value™: ₫20,321.22 vs. price of ₫16,000.00 (21.3% below fair value)
Industry Position: 76.1% below the Construction median (#1581 of 1719)
No single metric tells the full story. See the HSTC:SII stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sai Gon Water Infrastructure Corp is a Vietnam-based company engaged in providing solutions for water in water and sewage treatment industry. The company offers water and wastewater management services to municipal entities, businesses, and manufacturers. The main activities of the company include investment, supplying technology solutions, and operation services for water supply and sewage treatment entities.
76GF Score
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