Salungano GroupJSE:SLG +8.70%26 Gross Margin % is 13.93% as of Sep. 2025, which is 31% above its 10-year median of 10.63. GuruFocus rates JSE:SLG with a GF Score™ of 26/100 and a GF Value™ of R0.62 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 124 Other Energy Sources companies, Salungano Group ranks worse than 72.58% on this metric.
Salungano Group Ltd gross margin has been in long-term decline. The average rate of decline per year is -6.5%.
The historical rank and industry rank for Salungano Group's Gross Margin % or its related term are showing as below:
JSE:SLG'
s Gross Margin % Range Over the Past 10 Years
Min: 2.69 Med: 10.63 Max: 17.35
Current: 9.46
During the past 13 years, the highestGross Margin % of Salungano Group was 17.35%. The lowest was 2.69%. And the median was 10.63%.
JSE:SLG's Gross Margin % is ranked worse than 72.58% of 124
companies
in the Other Energy Sources industry
Industry Median: 18.775
vs JSE:SLG: 9.46
Salungano Group had a gross margin of 13.93% for the quarter that ended in Sep. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Salungano Group was -6.50% per year.
Salungano Group (JSE:SLG) 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
Salungano Group had a gross margin of 13.93% for the quarter that ended in Sep. 2025 => 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.
Salungano Group Gross Margin % Related Terms
Salungano Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for Salungano Group'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 Thermal Coal subindustry, Salungano Group'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.
Salungano Group Gross Margin % vs Other Energy Sources Industry
For the Other Energy Sources industry and Energy sector, Salungano Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Salungano Group'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.
Salungano Group (JSE:SLG) has a Gross Margin % of 13.93% as of Sep. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Salungano Group and its competitors. This is 31% above median its historical median of 10.63. Over the past decade, Salungano Group's Gross Margin % has ranged from 2.69 to 17.35. According to the industry distribution chart, Salungano Group ranks #90 out of 124 companies in the Other Energy Sources industry, placing it in the top 72.6%.
Is Salungano Group's Gross Margin % too high?
Salungano Group's current Gross Margin % of 13.93% is 31% above median its 10-year median of 10.63. Over the past 10 years, this metric has ranged from a low of 2.69 to a high of 17.35. The Other Energy Sources industry median Gross Margin % is 18.78. Salungano Group's value of 13.93% is 25.8% below this industry median. Based on the distribution chart, Salungano Group ranks #90 out of 124 companies in the Other Energy Sources industry, which is below the industry midpoint. Overall, Salungano Group has a GF Score™ of 26/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Salungano Group's Gross Margin % compare to CNR?
According to the Other Energy Sources industry distribution chart, Salungano Group ranks #90 out of 124 companies for Gross Margin %. This places Salungano Group in the lower half of its industry. The industry median Gross Margin % is 18.78. Salungano Group's value of 13.93% is 25.8% below this benchmark. Historically, Salungano Group's own Gross Margin % has ranged from 2.69 to 17.35 over the past decade. While the company's 10-year median is 10.63 vs. the industry median of 18.78, Salungano Group 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 Other Energy Sources company?
The median Gross Margin % among Other Energy Sources companies is 18.78, based on 124 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. Salungano Group's current Gross Margin % of 13.93% is 25.8% 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 Salungano Group and its competitors. For the Other Energy Sources industry, the median Gross Margin % is 18.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Salungano Group's current Gross Margin % is 13.93%, which is 31% above median its own 10-year median of 10.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Salungano Group stock overvalued right now?
Based on GuruFocus' analysis, Salungano Group (JSE:SLG) is currently considered Significantly Overvalued. The stock's GF Value™ is R0.62, compared to a current price of R1.00 — trading 61.3% above its estimated fair value. The current Gross Margin % is 13.93%, which is 31% above median its 10-year median of 10.63 and 25.8% below the Other Energy Sources industry median of 18.78. Salungano Group's overall GF Score™ is 26/100 with 7 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 Salungano Group (JSE:SLG), the current Gross Margin % is 13.93% as of Sep. 2025. 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 Salungano Group (JSE:SLG) Overvalued in 2026?
Based on GuruFocus' analysis, Salungano Group stock appears to be overvalued.
The current stock price of R1.00 is trading 61.3% above its estimated GF Value™ of R0.62.
GuruFocus considers Salungano Group to be Significantly Overvalued.
Key valuation signals for JSE:SLG:
Gross Margin %: 13.93% (31% above median its 10-year median of 10.63)
GF Value™: R0.62 vs. price of R1.00 (61.3% above fair value)
Industry Position: 25.8% below the Other Energy Sources median (#90 of 124)
No single metric tells the full story. See the JSE:SLG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Salungano Group Ltd is a South African firm mainly engaged in the mining, processing, sale, and distribution of thermal coal. Along with its subsidiaries, it operates in the following reportable segments: Mining, Trading, Property rental and other, and Investment holding. The majority of its revenue is generated from the Mining segment, which is involved in the exploration, beneficiation, and mining of bituminous coal. The mining operations of the Group are carried out at Elandspruit, Khanyisa, Vanggatfontein, Arnot, and Moabsvelden mining complexes. The Trading segment buys and sells coal to inland customers, and the property rental segment rents property to other segments within the group.
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