Specialities Group Holding Co KSCC (KUW:SPEC) 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
Specialities Group Holding Co KSCC had a gross margin of 23.84% for the quarter that ended in Mar. 2026 => Competition eroding margins
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.
Specialities Group Holding Co KSCC Gross Margin % Related Terms
Specialities Group Holding Co KSCC 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.
Specialities Group Holding Co KSCC Gross Margin % Chart
For the Conglomerates subindustry, Specialities Group Holding Co KSCC'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.
Specialities Group Holding Co KSCC Gross Margin % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Specialities Group Holding Co KSCC's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Specialities Group Holding Co KSCC'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.
Specialities Group Holding Co KSCC (KUW:SPEC) has a Gross Margin % of 23.84% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Specialities Group Holding Co KSCC and its competitors. This is 19% above median its historical median of 19.99. Over the past decade, Specialities Group Holding Co KSCC's Gross Margin % has ranged from 12.80 to 26.25. According to the industry distribution chart, Specialities Group Holding Co KSCC ranks #326 out of 513 companies in the Conglomerates industry, placing it in the top 63.5%.
Is Specialities Group Holding Co KSCC's Gross Margin % too high?
Specialities Group Holding Co KSCC's current Gross Margin % of 23.84% is 19% above median its 10-year median of 19.99. Over the past 10 years, this metric has ranged from a low of 12.80 to a high of 26.25. The Conglomerates industry median Gross Margin % is 25.96. Specialities Group Holding Co KSCC's value of 23.84% is 8.2% below this industry median. Based on the distribution chart, Specialities Group Holding Co KSCC ranks #326 out of 513 companies in the Conglomerates industry, which is below the industry midpoint. Overall, Specialities Group Holding Co KSCC has a GF Score™ of 56/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Specialities Group Holding Co KSCC's Gross Margin % compare to HON and MMM?
According to the Conglomerates industry distribution chart, Specialities Group Holding Co KSCC ranks #326 out of 513 companies for Gross Margin %. This places Specialities Group Holding Co KSCC in the lower half of its industry. The industry median Gross Margin % is 25.96. Specialities Group Holding Co KSCC's value of 23.84% is 8.2% below this benchmark. Historically, Specialities Group Holding Co KSCC's own Gross Margin % has ranged from 12.80 to 26.25 over the past decade. While the company's 10-year median is 19.99 vs. the industry median of 25.96, Specialities Group Holding Co KSCC 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 Conglomerates company?
The median Gross Margin % among Conglomerates companies is 25.96, based on 513 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. Specialities Group Holding Co KSCC's current Gross Margin % of 23.84% is 8.2% 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 Specialities Group Holding Co KSCC and its competitors. For the Conglomerates industry, the median Gross Margin % is 25.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Specialities Group Holding Co KSCC's current Gross Margin % is 23.84%, which is 19% above median its own 10-year median of 19.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Specialities Group Holding Co KSCC stock overvalued right now?
Based on GuruFocus' analysis, Specialities Group Holding Co KSCC (KUW:SPEC) is currently considered Modestly Overvalued. The stock's GF Value™ is KWD0.20, compared to a current price of KWD0.24 — trading 21.5% above its estimated fair value. The current Gross Margin % is 23.84%, which is 19% above median its 10-year median of 19.99 and 8.2% below the Conglomerates industry median of 25.96. Specialities Group Holding Co KSCC's overall GF Score™ is 56/100 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 Specialities Group Holding Co KSCC (KUW:SPEC), the current Gross Margin % is 23.84% 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 Specialities Group Holding Co KSCC (KUW:SPEC) Overvalued in 2026?
Based on GuruFocus' analysis, Specialities Group Holding Co KSCC stock appears to be overvalued.
The current stock price of KWD0.24 is trading 21.5% above its estimated GF Value™ of KWD0.20.
GuruFocus considers Specialities Group Holding Co KSCC to be Modestly Overvalued.
Key valuation signals for KUW:SPEC:
Gross Margin %: 23.84% (19% above median its 10-year median of 19.99)
GF Value™: KWD0.20 vs. price of KWD0.24 (21.5% above fair value)
Industry Position: 8.2% below the Conglomerates median (#326 of 513)
No single metric tells the full story. See the KUW:SPEC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Specialities Group Holding Co KSCC Business Description
Specialities Group Holding Co KSCC is a diversified company operating various businesses. It is engaged in manufacturing and importing special construction chemicals and waterproofing systems with all necessary support and services. It is also involved in trading, manufacturing of construction materials and chemicals, and providing contracting and construction services. Additionally, the company has diversified its investments in the real estate and energy sectors through its subsidiaries. The Group generates maximum revenue from its general trading, marine, contracting, and construction activities, followed by its Oil and gas and Real estate activities. Geographically, it generates maximum revenue from Kuwait and also has its presence in other Gulf countries.
56GF Score
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