Steel & Tube HoldingsNZSE:STU 40 Gross Margin % is 28.65% as of Dec. 2025, which is 10% above its 10-year median of 26.10. GuruFocus rates NZSE:STU with a GF Score™ of 40/100 and a GF Value™ of NZ$0.73 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 594 Steel companies, Steel & Tube Holdings ranks better than 85.19% 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
Steel & Tube Holdings had a gross margin of 28.65% for the quarter that ended in Dec. 2025 => 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.
Steel & Tube Holdings Gross Margin % Related Terms
Steel & Tube Holdings Gross Margin % Historical Data
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The historical data trend for Steel & Tube Holdings'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.
NZSE:STU vs NUE, STLD, RS: Gross Margin % Comparison
For the Steel subindustry, Steel & Tube Holdings'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.
Steel & Tube Holdings Gross Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Steel & Tube Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Steel & Tube Holdings'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.
Steel & Tube Holdings (NZSE:STU) has a Gross Margin % of 28.65% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Steel & Tube Holdings and its competitors. This is 10% above median its historical median of 26.10. Over the past decade, Steel & Tube Holdings' Gross Margin % has ranged from 20.48 to 31.38. According to the industry distribution chart, Steel & Tube Holdings ranks #88 out of 594 companies in the Steel industry, placing it in the top 14.8%.
Is Steel & Tube Holdings' Gross Margin % too high?
Steel & Tube Holdings' current Gross Margin % of 28.65% is 10% above median its 10-year median of 26.10. Over the past 10 years, this metric has ranged from a low of 20.48 to a high of 31.38. The Steel industry median Gross Margin % is 12.61. Steel & Tube Holdings' value of 28.65% is 127.2% above this industry median. Based on the distribution chart, Steel & Tube Holdings ranks #88 out of 594 companies in the Steel industry, which is in the top quartile — a strong position relative to peers. Overall, Steel & Tube Holdings has a GF Score™ of 40/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Steel & Tube Holdings' Gross Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Steel & Tube Holdings ranks #88 out of 594 companies for Gross Margin %. This places Steel & Tube Holdings in the top 15% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 12.61. Steel & Tube Holdings' value of 28.65% is 127.2% above this benchmark. Historically, Steel & Tube Holdings' own Gross Margin % has ranged from 20.48 to 31.38 over the past decade. While the company's 10-year median is 26.10 vs. the industry median of 12.61, Steel & Tube Holdings 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 Steel company?
The median Gross Margin % among Steel companies is 12.61, based on 594 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. Steel & Tube Holdings's current Gross Margin % of 28.65% is 127.2% 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 Steel & Tube Holdings and its competitors. For the Steel industry, the median Gross Margin % is 12.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Steel & Tube Holdings's current Gross Margin % is 28.65%, which is 10% above median its own 10-year median of 26.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Steel & Tube Holdings stock overvalued right now?
Based on GuruFocus' analysis, Steel & Tube Holdings (NZSE:STU) is currently considered Possible Value Trap. The stock's GF Value™ is NZ$0.73, compared to a current price of NZ$0.34 — trading 54.1% below its estimated fair value. The current Gross Margin % is 28.65%, which is 10% above median its 10-year median of 26.10 and 127.2% above the Steel industry median of 12.61. Steel & Tube Holdings' overall GF Score™ is 40/100 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 Steel & Tube Holdings (NZSE:STU), the current Gross Margin % is 28.65% 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 Steel & Tube Holdings (NZSE:STU) Overvalued in 2026?
Based on GuruFocus' analysis, Steel & Tube Holdings stock appears to be undervalued.
The current stock price of NZ$0.34 is trading 54.1% below its estimated GF Value™ of NZ$0.73.
GuruFocus considers Steel & Tube Holdings to be Possible Value Trap.
Key valuation signals for NZSE:STU:
Gross Margin %: 28.65% (10% above median its 10-year median of 26.10)
GF Value™: NZ$0.73 vs. price of NZ$0.34 (54.1% below fair value)
Industry Position: 127.2% above the Steel median (#88 of 594)
No single metric tells the full story. See the NZSE:STU stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Steel & Tube Holdings Ltd is a New Zealand-based company. The company is a provider of steel solutions. It is a distributor and manufacturer of steel products including steel, stainless steel, architectural stainless, pipe, fittings and valves, pipe and cable supports, fastenings, roofing and cladding, and many more. The company's operating segments include Distribution and Infrastructure. It generates maximum revenue from the Distribution segment.
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