Smart (J) (Contractors)LSE:SMJ 61 Gross Margin % is 13.62% as of Jan. 2026, which is 18% below its 10-year median of 16.70. GuruFocus rates LSE:SMJ with a GF Score™ of 61/100 and a GF Value™ of £2.18 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 1,718 Construction companies, Smart (J) (Contractors) ranks worse than 68.98% on this metric.
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
Smart (J) (Contractors) had a gross margin of 13.62% for the quarter that ended in Jan. 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.
Smart (J) (Contractors) Gross Margin % Related Terms
Smart (J) (Contractors) 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.
LSE:SMJ vs PWR, FIX, EME: Gross Margin % Comparison
For the Engineering & Construction subindustry, Smart (J) (Contractors)'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.
Smart (J) (Contractors) Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Smart (J) (Contractors)'s Gross Margin % distribution charts can be found below:
* The bar in red indicates where Smart (J) (Contractors)'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.
Smart (J) (Contractors) (LSE:SMJ) has a Gross Margin % of 13.62% as of Jan. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Smart (J) (Contractors) and its competitors. This is 18% below median its historical median of 16.70. Over the past decade, Smart (J) (Contractors)'s Gross Margin % has ranged from 0.25 to 46.64. According to the industry distribution chart, Smart (J) (Contractors) ranks #1185 out of 1718 companies in the Construction industry, placing it in the top 69%.
Is Smart (J) (Contractors)'s Gross Margin % too high?
Smart (J) (Contractors)'s current Gross Margin % of 13.62% is 18% below median its 10-year median of 16.70. Over the past 10 years, this metric has ranged from a low of 0.25 to a high of 46.64. The Construction industry median Gross Margin % is 20.79. Smart (J) (Contractors)'s value of 13.62% is 34.5% below this industry median. Based on the distribution chart, Smart (J) (Contractors) ranks #1185 out of 1718 companies in the Construction industry, which is below the industry midpoint. Overall, Smart (J) (Contractors) has a GF Score™ of 61/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Smart (J) (Contractors)'s Gross Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Smart (J) (Contractors) ranks #1185 out of 1718 companies for Gross Margin %. This places Smart (J) (Contractors) in the lower half of its industry. The industry median Gross Margin % is 20.79. Smart (J) (Contractors)'s value of 13.62% is 34.5% below this benchmark. Historically, Smart (J) (Contractors)'s own Gross Margin % has ranged from 0.25 to 46.64 over the past decade. While the company's 10-year median is 16.70 vs. the industry median of 20.79, Smart (J) (Contractors) 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 Construction company?
The median Gross Margin % among Construction companies is 20.79, based on 1,718 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. Smart (J) (Contractors)'s current Gross Margin % of 13.62% is 34.5% 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 Smart (J) (Contractors) and its competitors. For the Construction industry, the median Gross Margin % is 20.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Smart (J) (Contractors)'s current Gross Margin % is 13.62%, which is 18% below median its own 10-year median of 16.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Smart (J) (Contractors) stock overvalued right now?
Based on GuruFocus' analysis, Smart (J) (Contractors) (LSE:SMJ) is currently considered Significantly Undervalued. The stock's GF Value™ is £2.18, compared to a current price of £1.13 — trading 48.4% below its estimated fair value. The current Gross Margin % is 13.62%, which is 18% below median its 10-year median of 16.70 and 34.5% below the Construction industry median of 20.79. Smart (J) (Contractors)'s overall GF Score™ is 61/100 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 Smart (J) (Contractors) (LSE:SMJ), the current Gross Margin % is 13.62% 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 Smart (J) (Contractors) (LSE:SMJ) Overvalued in 2026?
Based on GuruFocus' analysis, Smart (J) (Contractors) stock appears to be undervalued.
The current stock price of £1.13 is trading 48.4% below its estimated GF Value™ of £2.18.
GuruFocus considers Smart (J) (Contractors) to be Significantly Undervalued.
Key valuation signals for LSE:SMJ:
Gross Margin %: 13.62% (18% below median its 10-year median of 16.70)
GF Value™: £2.18 vs. price of £1.13 (48.4% below fair value)
Industry Position: 34.5% below the Construction median (#1185 of 1718)
No single metric tells the full story. See the LSE:SMJ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Smart (J) & Co (Contractors) PLC is a construction company. Its activities include building and civil engineering contracting, a residential development for sale, and the development of industrial and commercial property for lease and sale. The main construction activity undertaken by the company is that of social housing for several housing associations and registered social landlords predominately in the Edinburgh area. It has a portfolio of self-financed industrial and commercial properties that are owned and managed by its subsidiary company. The investment properties are located throughout the central belt of Scotland and in the Edinburgh area.
61GF Score
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