Smiths GroupLSE:SMIN +0.86%66 Gross Margin % is 42.19% as of Jan. 2026, which is 12% above its 10-year median of 37.74. GuruFocus rates LSE:SMIN with a GF Score™ of 66/100 and a GF Value™ of £13.71 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 2,996 Industrial Products companies, Smiths Group ranks better than 73.6% on this metric.
The historical rank and industry rank for Smiths Group's Gross Margin % or its related term are showing as below:
LSE:SMIN'
s Gross Margin % Range Over the Past 10 Years
Min: 36.81 Med: 37.74 Max: 46.49
Current: 36.99
During the past 13 years, the highestGross Margin % of Smiths Group was 46.49%. The lowest was 36.81%. And the median was 37.74%.
LSE:SMIN's Gross Margin % is ranked better than 73.6% of 2996
companies
in the Industrial Products industry
Industry Median: 26.8
vs LSE:SMIN: 36.99
Smiths Group had a gross margin of 42.19% for the quarter that ended in Jan. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Smiths Group was -0.40% per year.
Smiths Group (LSE:SMIN) 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
Smiths Group had a gross margin of 42.19% for the quarter that ended in Jan. 2026 => 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.
Smiths Group Gross Margin % Related Terms
Smiths Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for Smiths 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.
LSE:SMIN vs GEV, ETN, PH: Gross Margin % Comparison
For the Specialty Industrial Machinery subindustry, Smiths 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.
Smiths Group Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Smiths Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Smiths 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.
Smiths Group (LSE:SMIN) has a Gross Margin % of 42.19% as of Jan. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Smiths Group and its competitors. This is 12% above median its historical median of 37.74. Over the past decade, Smiths Group's Gross Margin % has ranged from 36.81 to 46.49. According to the industry distribution chart, Smiths Group ranks #791 out of 2996 companies in the Industrial Products industry, placing it in the top 26.4%.
Is Smiths Group's Gross Margin % too high?
Smiths Group's current Gross Margin % of 42.19% is 12% above median its 10-year median of 37.74. Over the past 10 years, this metric has ranged from a low of 36.81 to a high of 46.49. The Industrial Products industry median Gross Margin % is 26.80. Smiths Group's value of 42.19% is 57.4% above this industry median. Based on the distribution chart, Smiths Group ranks #791 out of 2996 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Smiths Group has a GF Score™ of 66/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Smiths Group's Gross Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Smiths Group ranks #791 out of 2996 companies for Gross Margin %. This puts Smiths Group in the upper half of its industry. The industry median Gross Margin % is 26.80. Smiths Group's value of 42.19% is 57.4% above this benchmark. Historically, Smiths Group's own Gross Margin % has ranged from 36.81 to 46.49 over the past decade. While the company's 10-year median is 37.74 vs. the industry median of 26.80, Smiths Group 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.80, based on 2,996 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. Smiths Group's current Gross Margin % of 42.19% is 57.4% 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 Smiths Group and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Smiths Group's current Gross Margin % is 42.19%, which is 12% above median its own 10-year median of 37.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Smiths Group stock overvalued right now?
Based on GuruFocus' analysis, Smiths Group (LSE:SMIN) is currently considered Significantly Overvalued. The stock's GF Value™ is £13.71, compared to a current price of £25.94 — trading 89.2% above its estimated fair value. The current Gross Margin % is 42.19%, which is 12% above median its 10-year median of 37.74 and 57.4% above the Industrial Products industry median of 26.80. Smiths Group's overall GF Score™ is 66/100 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 Smiths Group (LSE:SMIN), the current Gross Margin % is 42.19% as of Jan. 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 Smiths Group (LSE:SMIN) Overvalued in 2026?
Based on GuruFocus' analysis, Smiths Group stock appears to be overvalued.
The current stock price of £25.94 is trading 89.2% above its estimated GF Value™ of £13.71.
GuruFocus considers Smiths Group to be Significantly Overvalued.
Key valuation signals for LSE:SMIN:
Gross Margin %: 42.19% (12% above median its 10-year median of 37.74)
GF Value™: £13.71 vs. price of £25.94 (89.2% above fair value)
Industry Position: 57.4% above the Industrial Products median (#791 of 2996)
No single metric tells the full story. See the LSE:SMIN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Smiths Group is a UK-based industrial technology company focused on engineered solutions for fluid and energy management, following the agreed divestments of its Detection and Interconnect divisions. Its two core businesses—John Crane and Flex-Tek - serve critical infrastructure, energy, aerospace, HVAC, and industrial markets. John Crane supplies mechanical seals, filtration systems, and condition-monitoring technologies used in rotating equipment, with a high-margin, recurring aftermarket business. Flex-Tek provides specialized tubing, heating components, and ducting systems primarily for US HVAC and aerospace OEMs.
66GF Score
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