Somero EnterprisesLSE:SOM -1.58%67 Gross Margin % is 51.33% as of Dec. 2025, which is 10% below its 10-year median of 56.80. GuruFocus rates LSE:SOM with a GF Score™ of 67/100 and a GF Value™ of £2.02 (Fairly Valued). The stock has 5 warning signs investors should review. Among 210 Farm & Heavy Construction Machinery companies, Somero Enterprises ranks better than 93.33% on this metric.
Somero Enterprises Inc gross margin has been in long-term decline. The average rate of decline per year is -1.5%.
The historical rank and industry rank for Somero Enterprises's Gross Margin % or its related term are showing as below:
LSE:SOM'
s Gross Margin % Range Over the Past 10 Years
Min: 51.99 Med: 56.8 Max: 57.66
Current: 51.99
During the past 13 years, the highestGross Margin % of Somero Enterprises was 57.66%. The lowest was 51.99%. And the median was 56.80%.
LSE:SOM's Gross Margin % is ranked better than 93.33% of 210
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 25.66
vs LSE:SOM: 51.99
Somero Enterprises had a gross margin of 51.33% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Somero Enterprises was -1.50% per year.
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
Somero Enterprises had a gross margin of 51.33% for the quarter that ended in Dec. 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.
Somero Enterprises Gross Margin % Related Terms
Somero Enterprises Gross Margin % Historical Data
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The historical data trend for Somero Enterprises'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:SOM vs CAT, DE, PCAR: Gross Margin % Comparison
For the Farm & Heavy Construction Machinery subindustry, Somero Enterprises'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.
Somero Enterprises Gross Margin % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Somero Enterprises's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Somero Enterprises'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.
Somero Enterprises (LSE:SOM) has a Gross Margin % of 51.33% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Somero Enterprises and its competitors. This is 10% below median its historical median of 56.80. Over the past decade, Somero Enterprises' Gross Margin % has ranged from 51.99 to 57.66. According to the industry distribution chart, Somero Enterprises ranks #14 out of 210 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 6.7%.
Is Somero Enterprises' Gross Margin % too high?
Somero Enterprises' current Gross Margin % of 51.33% is 10% below median its 10-year median of 56.80. Over the past 10 years, this metric has ranged from a low of 51.99 to a high of 57.66. The Farm & Heavy Construction Machinery industry median Gross Margin % is 25.66. Somero Enterprises' value of 51.33% is 100% above this industry median. Based on the distribution chart, Somero Enterprises ranks #14 out of 210 companies in the Farm & Heavy Construction Machinery industry, which is in the top quartile — a strong position relative to peers. Overall, Somero Enterprises has a GF Score™ of 67/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Somero Enterprises' Gross Margin % compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Somero Enterprises ranks #14 out of 210 companies for Gross Margin %. This places Somero Enterprises in the top 7% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 25.66. Somero Enterprises' value of 51.33% is 100% above this benchmark. Historically, Somero Enterprises' own Gross Margin % has ranged from 51.99 to 57.66 over the past decade. While the company's 10-year median is 56.80 vs. the industry median of 25.66, Somero Enterprises 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 Farm & Heavy Construction Machinery company?
The median Gross Margin % among Farm & Heavy Construction Machinery companies is 25.66, based on 210 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. Somero Enterprises's current Gross Margin % of 51.33% is 100% 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 Somero Enterprises and its competitors. For the Farm & Heavy Construction Machinery industry, the median Gross Margin % is 25.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Somero Enterprises's current Gross Margin % is 51.33%, which is 10% below median its own 10-year median of 56.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Somero Enterprises stock overvalued right now?
Based on GuruFocus' analysis, Somero Enterprises (LSE:SOM) is currently considered Fairly Valued. The stock's GF Value™ is £2.02, compared to a current price of £1.87 — trading 7.4% below its estimated fair value. The current Gross Margin % is 51.33%, which is 10% below median its 10-year median of 56.80 and 100% above the Farm & Heavy Construction Machinery industry median of 25.66. Somero Enterprises' overall GF Score™ is 67/100 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 Somero Enterprises (LSE:SOM), the current Gross Margin % is 51.33% as of Dec. 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 Somero Enterprises (LSE:SOM) Overvalued in 2026?
Based on GuruFocus' analysis, Somero Enterprises stock appears to be undervalued.
The current stock price of £1.87 is trading 7.4% below its estimated GF Value™ of £2.02.
GuruFocus considers Somero Enterprises to be Fairly Valued.
Key valuation signals for LSE:SOM:
Gross Margin %: 51.33% (10% below median its 10-year median of 56.80)
GF Value™: £2.02 vs. price of £1.87 (7.4% below fair value)
Industry Position: 100% above the Farm & Heavy Construction Machinery median (#14 of 210)
No single metric tells the full story. See the LSE:SOM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Somero Enterprises Inc designs, assembles, remanufactures, sells, and distributes concrete leveling, contouring, and placing equipment, related parts and accessories, and training services world'wide. Its products include Ride-on Laser Screeds, Lightweight Screeds, Boom Laser Screeds, Compact Boom Screeds, Stationary Laser Screeds, Software Packages, Factory Certified Remanufactured Equipment, Materials Placement. The Company operates as a single reportable segment. The group has presence in North America, Europe, Australia, ROW (includes Latin America, India, China, Middle East, Korea, and Southeast Asia). The company generates majority of revenue from North America.
67GF Score
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