Sterling ToolsNSE:STERTOOLS -0.44%84 Gross Margin % is 59.36% as of Mar. 2026, which is 23% above its 10-year median of 48.31. GuruFocus rates NSE:STERTOOLS with a GF Score™ of 84/100 and a GF Value™ of ₹335.04 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 2,996 Industrial Products companies, Sterling Tools ranks better than 95.16% on this metric.
The historical rank and industry rank for Sterling Tools's Gross Margin % or its related term are showing as below:
NSE:STERTOOLS'
s Gross Margin % Range Over the Past 10 Years
Min: 34.35 Med: 48.31 Max: 59.32
Current: 59.32
During the past 13 years, the highestGross Margin % of Sterling Tools was 59.32%. The lowest was 34.35%. And the median was 48.31%.
NSE:STERTOOLS's Gross Margin % is ranked better than 95.16% of 2996
companies
in the Industrial Products industry
Industry Median: 26.8
vs NSE:STERTOOLS: 59.32
Sterling Tools had a gross margin of 59.36% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Sterling Tools was 3.70% 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
Sterling Tools had a gross margin of 59.36% for the quarter that ended in Mar. 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.
Sterling Tools Gross Margin % Related Terms
Sterling Tools Gross Margin % Historical Data
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The historical data trend for Sterling Tools'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.
NSE:STERTOOLS vs SNA, RBC, LECO: Gross Margin % Comparison
For the Tools & Accessories subindustry, Sterling Tools'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.
Sterling Tools Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Sterling Tools's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sterling Tools'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.
Sterling Tools (NSE:STERTOOLS) has a Gross Margin % of 59.36% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Sterling Tools and its competitors. This is 23% above median its historical median of 48.31. Over the past decade, Sterling Tools' Gross Margin % has ranged from 34.35 to 59.32. According to the industry distribution chart, Sterling Tools ranks #145 out of 2996 companies in the Industrial Products industry, placing it in the top 4.8%.
Is Sterling Tools' Gross Margin % too high?
Sterling Tools' current Gross Margin % of 59.36% is 23% above median its 10-year median of 48.31. Over the past 10 years, this metric has ranged from a low of 34.35 to a high of 59.32. The Industrial Products industry median Gross Margin % is 26.80. Sterling Tools' value of 59.36% is 121.5% above this industry median. Based on the distribution chart, Sterling Tools ranks #145 out of 2996 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Sterling Tools has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sterling Tools' Gross Margin % compare to SNA and RBC?
According to the Industrial Products industry distribution chart, Sterling Tools ranks #145 out of 2996 companies for Gross Margin %. This places Sterling Tools in the top 5% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 26.80. Sterling Tools' value of 59.36% is 121.5% above this benchmark. Historically, Sterling Tools' own Gross Margin % has ranged from 34.35 to 59.32 over the past decade. While the company's 10-year median is 48.31 vs. the industry median of 26.80, Sterling Tools 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. Sterling Tools's current Gross Margin % of 59.36% is 121.5% 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 Sterling Tools 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. Sterling Tools's current Gross Margin % is 59.36%, which is 23% above median its own 10-year median of 48.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sterling Tools stock overvalued right now?
Based on GuruFocus' analysis, Sterling Tools (NSE:STERTOOLS) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹335.04, compared to a current price of ₹244.58 — trading 27% below its estimated fair value. The current Gross Margin % is 59.36%, which is 23% above median its 10-year median of 48.31 and 121.5% above the Industrial Products industry median of 26.80. Sterling Tools' overall GF Score™ is 84/100 with 4 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 Sterling Tools (NSE:STERTOOLS), the current Gross Margin % is 59.36% 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 Sterling Tools (NSE:STERTOOLS) Overvalued in 2026?
Based on GuruFocus' analysis, Sterling Tools stock appears to be undervalued.
The current stock price of ₹244.58 is trading 27% below its estimated GF Value™ of ₹335.04.
GuruFocus considers Sterling Tools to be Modestly Undervalued.
Key valuation signals for NSE:STERTOOLS:
Gross Margin %: 59.36% (23% above median its 10-year median of 48.31)
GF Value™: ₹335.04 vs. price of ₹244.58 (27% below fair value)
Industry Position: 121.5% above the Industrial Products median (#145 of 2996)
No single metric tells the full story. See the NSE:STERTOOLS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sterling Tools Ltd engages in the manufacture and trade of high tensile cold forged fasteners. The firm offers its products in various categories namely Standard Fasteners, Special Fasteners, Chassis Fasteners, and Engine Fasteners. Its products include bolts, nuts, screws, washers of iron and steel, and cold-forged high-tensile fasteners for automobiles, general engineering, consumer durables, railways, and the auto replacement industry. The company has Automotive components as the only operating segment Geographically, the majority of the revenue comes from India.
84GF Score
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