Surface TransformsLSE:SCE Gross Margin % is 63.54% as of Jun. 2025, which is 4% above its 10-year median of 61.28. The stock has 8 warning signs investors should review.
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
Surface Transforms had a gross margin of 63.54% for the quarter that ended in Jun. 2025 => Durable 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.
Surface Transforms Gross Margin % Related Terms
Surface Transforms Gross Margin % Historical Data
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The historical data trend for Surface Transforms'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.
LSE:SCE vs ORLY, AZO, GPC: Gross Margin % Comparison
For the Auto Parts subindustry, Surface Transforms'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.
Surface Transforms Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Surface Transforms's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Surface Transforms'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.
Surface Transforms (LSE:SCE) has a Gross Margin % of 63.54% as of Jun. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Surface Transforms and its competitors. This is near median its historical median of 61.28. Over the past decade, Surface Transforms' Gross Margin % has ranged from 49.81 to 67.35.
Is Surface Transforms' Gross Margin % too high?
Surface Transforms' current Gross Margin % of 63.54% is near median its 10-year median of 61.28. Over the past 10 years, this metric has ranged from a low of 49.81 to a high of 67.35. The Vehicles & Parts industry median Gross Margin % is 19.84. Surface Transforms' value of 63.54% is 220.3% above this industry median.
How does Surface Transforms' Gross Margin % compare to ORLY and AZO?
Surface Transforms' Gross Margin % of 63.54% can be compared against companies in the Vehicles & Parts industry. The industry median Gross Margin % is 19.84. Surface Transforms' value of 63.54% is 220.3% above this benchmark. Historically, Surface Transforms' own Gross Margin % has ranged from 49.81 to 67.35 over the past decade. While the company's 10-year median is 61.28 vs. the industry median of 19.84, Surface Transforms has consistently been above 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 Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.84, based on 1,311 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. Surface Transforms's current Gross Margin % of 63.54% is 220.3% above 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 Surface Transforms and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Surface Transforms's current Gross Margin % is 63.54%, which is near median its own 10-year median of 61.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Surface Transforms stock overvalued right now?
Surface Transforms (LSE:SCE) has a current Gross Margin % of 63.54%. The stock's GF Value™ is £0.03, compared to a current price of £0.00 — trading 96.2% below its estimated fair value. The current Gross Margin % is 63.54%, which is near median its 10-year median of 61.28 and 220.3% above the Vehicles & Parts industry median of 19.84. 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 Surface Transforms (LSE:SCE), the current Gross Margin % is 63.54% as of Jun. 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.
Surface Transforms PLC is a company that develops, manufactures, and markets carbon-ceramic products for the brakes market. It also engages in developing new products and applications for carbon fiber-reinforced ceramic friction and non-friction materials. The Company operates in a single segment being the manufacture and sale of carbon fiber materials and associated technologies. This segment includes all manufacturing, development, and sales activities related to carbon fiber materials, regardless of the specific market or product application. It has operations spread across the United Kingdom, Germany, Sweden the United States of America, the Rest of Europe, and the Rest of the World.
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