Paramount Speciality ForgingsNSE:PSFL -5.41%13 Gross Margin % is 16.85% as of Mar. 2025, which is at its 10-year median of 16.85. GuruFocus rates NSE:PSFL with a GF Score™ of 13/100. The stock has 5 warning signs investors should review. Among 2,996 Industrial Products companies, Paramount Speciality Forgings ranks worse than 75.73% 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
Paramount Speciality Forgings had a gross margin of 16.85% for the quarter that ended in Mar. 2025 => 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.
Paramount Speciality Forgings Gross Margin % Related Terms
Paramount Speciality Forgings 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.
NSE:PSFL vs CRS, ATI, MLI: Gross Margin % Comparison
For the Metal Fabrication subindustry, Paramount Speciality Forgings'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.
Paramount Speciality Forgings Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Paramount Speciality Forgings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Paramount Speciality Forgings'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.
Paramount Speciality Forgings (NSE:PSFL) has a Gross Margin % of 16.85% as of Mar. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Paramount Speciality Forgings and its competitors. This is near median its historical median of 16.85. Over the past decade, Paramount Speciality Forgings' Gross Margin % has ranged from 4.66 to 24.95. According to the industry distribution chart, Paramount Speciality Forgings ranks #2269 out of 2996 companies in the Industrial Products industry, placing it in the top 75.7%.
Is Paramount Speciality Forgings' Gross Margin % too high?
Paramount Speciality Forgings' current Gross Margin % of 16.85% is near median its 10-year median of 16.85. Over the past 10 years, this metric has ranged from a low of 4.66 to a high of 24.95. The Industrial Products industry median Gross Margin % is 26.80. Paramount Speciality Forgings' value of 16.85% is 37.1% below this industry median. Based on the distribution chart, Paramount Speciality Forgings ranks #2269 out of 2996 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, Paramount Speciality Forgings has a GF Score™ of 13/100, reflecting its overall financial health beyond just this single metric.
How does Paramount Speciality Forgings' Gross Margin % compare to CRS and ATI?
According to the Industrial Products industry distribution chart, Paramount Speciality Forgings ranks #2269 out of 2996 companies for Gross Margin %. This places Paramount Speciality Forgings in the lower half of its industry. The industry median Gross Margin % is 26.80. Paramount Speciality Forgings' value of 16.85% is 37.1% below this benchmark. Historically, Paramount Speciality Forgings' own Gross Margin % has ranged from 4.66 to 24.95 over the past decade. While the company's 10-year median is 16.85 vs. the industry median of 26.80, Paramount Speciality Forgings 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 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. Paramount Speciality Forgings's current Gross Margin % of 16.85% is 37.1% 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 Paramount Speciality Forgings 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. Paramount Speciality Forgings's current Gross Margin % is 16.85%, which is near median its own 10-year median of 16.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Paramount Speciality Forgings stock overvalued right now?
Paramount Speciality Forgings (NSE:PSFL) has a current Gross Margin % of 16.85%. The current Gross Margin % is 16.85%, which is near median its 10-year median of 16.85 and 37.1% below the Industrial Products industry median of 26.80. Paramount Speciality Forgings' overall GF Score™ is 13/100 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 Paramount Speciality Forgings (NSE:PSFL), the current Gross Margin % is 16.85% as of Mar. 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.
Paramount Speciality Forgings Business Description
Paramount Speciality Forgings Ltd is engaged in manufacturing steel forgings in India. It manufactures and provides forged components ranging in weight from one kilogram to four metric tons in rough or finish-machined condition. Its products are used in industries such as Petrochemicals, Chemicals, Fertilizers, Oil and Gas, Nuclear Power, and other heavy engineering sectors. The company only operates in the sale of carbon steel and stainless steel flanges and fittings, and other engineering goods made from steel and stainless steel, or any other goods and merchandise.
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