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
Sensient Technologies had a gross margin of 35.03% 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.
Sensient Technologies Gross Margin % Related Terms
Sensient Technologies Gross Margin % Historical Data
* Premium members only.
The historical data trend for Sensient Technologies'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.
MEX:SXT vs CBT, BCPC, PRM: Gross Margin % Comparison
For the Specialty Chemicals subindustry, Sensient Technologies'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.
Sensient Technologies Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Sensient Technologies's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sensient Technologies'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.
Sensient Technologies (MEX:SXT) has a Gross Margin % of 35.03% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Sensient Technologies and its competitors. This is near median its historical median of 33.20. Over the past decade, Sensient Technologies' Gross Margin % has ranged from 31.36 to 34.90. According to the industry distribution chart, Sensient Technologies ranks #405 out of 1561 companies in the Chemicals industry, placing it in the top 25.9%.
Is Sensient Technologies' Gross Margin % too high?
Sensient Technologies' current Gross Margin % of 35.03% is near median its 10-year median of 33.20. Over the past 10 years, this metric has ranged from a low of 31.36 to a high of 34.90. The Chemicals industry median Gross Margin % is 23.35. Sensient Technologies' value of 35.03% is 50% above this industry median. Based on the distribution chart, Sensient Technologies ranks #405 out of 1561 companies in the Chemicals industry, which is above the industry midpoint. Overall, Sensient Technologies has a GF Score™ of 84/100, reflecting its overall financial health beyond just this single metric.
How does Sensient Technologies' Gross Margin % compare to CBT and BCPC?
According to the Chemicals industry distribution chart, Sensient Technologies ranks #405 out of 1561 companies for Gross Margin %. This puts Sensient Technologies in the upper half of its industry. The industry median Gross Margin % is 23.35. Sensient Technologies' value of 35.03% is 50% above this benchmark. Historically, Sensient Technologies' own Gross Margin % has ranged from 31.36 to 34.90 over the past decade. While the company's 10-year median is 33.20 vs. the industry median of 23.35, Sensient Technologies 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 Chemicals company?
The median Gross Margin % among Chemicals companies is 23.35, based on 1,561 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. Sensient Technologies's current Gross Margin % of 35.03% is 50% 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 Sensient Technologies and its competitors. For the Chemicals industry, the median Gross Margin % is 23.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sensient Technologies's current Gross Margin % is 35.03%, which is near median its own 10-year median of 33.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sensient Technologies stock overvalued right now?
Sensient Technologies (MEX:SXT) has a current Gross Margin % of 35.03%. The stock's GF Value™ is MXN1,010.91, compared to a current price of MXN1,400.00 — trading 38.5% above its estimated fair value. The current Gross Margin % is 35.03%, which is near median its 10-year median of 33.20 and 50% above the Chemicals industry median of 23.35. Sensient Technologies' overall GF Score™ is 84/100 with 8 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 Sensient Technologies (MEX:SXT), the current Gross Margin % is 35.03% 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 Sensient Technologies (MEX:SXT) Overvalued in 2026?
Based on GuruFocus' analysis, Sensient Technologies stock appears to be overvalued.
The current stock price of MXN1,400.00 is trading 38.5% above its estimated GF Value™ of MXN1,010.91.
Key valuation signals for MEX:SXT:
Gross Margin %: 35.03% (near median its 10-year median of 33.20)
GF Value™: MXN1,010.91 vs. price of MXN1,400.00 (38.5% above fair value)
Industry Position: 50% above the Chemicals median (#405 of 1561)
No single metric tells the full story. See the MEX:SXT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sensient Technologies Corp manufactures and markets natural and synthetic colors, flavors, and other specialty ingredients. Sensient's offerings are predominantly applied to consumer-facing products, including food and beverage, cosmetics and pharmaceuticals, nutraceuticals, and personal care industries. Its principal products are flavors, flavor enhancers, ingredients, extracts, and bionutrients, essential oils, dehydrated vegetables and other food ingredients, natural and synthetic food and beverage colors, and others. The company's reportable segments are: Flavors & Extracts, which derive key revenue, Color, Asia Pacific, and Corporate and Other. Geographically, the company generates maximum revenue from North America, followed by Europe, Asia-Pacific, and other regions.
84GF Score
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