What is Singapore Technologies Engineering Gross Margin %?
Singapore Technologies EngineeringSGGKY 69 Gross Margin % is 16.06% as of Dec. 2025, which is 19% below its 10-year median of 19.74. GuruFocus rates SGGKY with a GF Scoreâ„¢ of 69/100 and a GF Valueâ„¢ of $44.66 (Significantly Overvalued). The stock has 11 warning signs investors should review. Among 342 Aerospace & Defense companies, Singapore Technologies Engineering ranks worse than 73.68% 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
Singapore Technologies Engineering had a gross margin of 16.06% for the quarter that ended in Dec. 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.
Singapore Technologies Engineering Gross Margin % Related Terms
Singapore Technologies Engineering 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.
For the Aerospace & Defense subindustry, Singapore Technologies Engineering'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.
Singapore Technologies Engineering Gross Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Singapore Technologies Engineering's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Singapore Technologies Engineering'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.
Singapore Technologies Engineering (SGGKY) has a Gross Margin % of 16.06% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Singapore Technologies Engineering and its competitors. This is 19% below median its historical median of 19.74. Over the past decade, Singapore Technologies Engineering's Gross Margin % has ranged from 17.48 to 21.34. According to the industry distribution chart, Singapore Technologies Engineering ranks #252 out of 342 companies in the Aerospace & Defense industry, placing it in the top 73.7%.
Is Singapore Technologies Engineering's Gross Margin % too high?
Singapore Technologies Engineering's current Gross Margin % of 16.06% is 19% below median its 10-year median of 19.74. Over the past 10 years, this metric has ranged from a low of 17.48 to a high of 21.34. The Aerospace & Defense industry median Gross Margin % is 26.65. Singapore Technologies Engineering's value of 16.06% is 39.7% below this industry median. Based on the distribution chart, Singapore Technologies Engineering ranks #252 out of 342 companies in the Aerospace & Defense industry, which is below the industry midpoint. Overall, Singapore Technologies Engineering has a GF Scoreâ„¢ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Singapore Technologies Engineering's Gross Margin % compare to GE and RTX?
According to the Aerospace & Defense industry distribution chart, Singapore Technologies Engineering ranks #252 out of 342 companies for Gross Margin %. This places Singapore Technologies Engineering in the lower half of its industry. The industry median Gross Margin % is 26.65. Singapore Technologies Engineering's value of 16.06% is 39.7% below this benchmark. Historically, Singapore Technologies Engineering's own Gross Margin % has ranged from 17.48 to 21.34 over the past decade. While the company's 10-year median is 19.74 vs. the industry median of 26.65, Singapore Technologies Engineering 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 Aerospace & Defense company?
The median Gross Margin % among Aerospace & Defense companies is 26.65, based on 342 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. Singapore Technologies Engineering's current Gross Margin % of 16.06% is 39.7% 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 Singapore Technologies Engineering and its competitors. For the Aerospace & Defense industry, the median Gross Margin % is 26.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Singapore Technologies Engineering's current Gross Margin % is 16.06%, which is 19% below median its own 10-year median of 19.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Singapore Technologies Engineering stock overvalued right now?
Based on GuruFocus' analysis, Singapore Technologies Engineering (SGGKY) is currently considered Significantly Overvalued. The stock's GF Value™ is $44.66, compared to a current price of $85.00 — trading 90.3% above its estimated fair value. The current Gross Margin % is 16.06%, which is 19% below median its 10-year median of 19.74 and 39.7% below the Aerospace & Defense industry median of 26.65. Singapore Technologies Engineering's overall GF Score™ is 69/100 with 11 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 Singapore Technologies Engineering (SGGKY), the current Gross Margin % is 16.06% 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 Singapore Technologies Engineering (SGGKY) Overvalued in 2026?
Based on GuruFocus' analysis, Singapore Technologies Engineering stock appears to be overvalued.
The current stock price of $85.00 is trading 90.3% above its estimated GF Value™ of $44.66.
GuruFocus considers Singapore Technologies Engineering to be Significantly Overvalued.
Key valuation signals for SGGKY:
Gross Margin %: 16.06% (19% below median its 10-year median of 19.74)
GF Value™: $44.66 vs. price of $85.00 (90.3% above fair value)
Industry Position: 39.7% below the Aerospace & Defense median (#252 of 342)
No single metric tells the full story. See the SGGKY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Singapore Technologies Engineering Business Description
ST Engineering is a Singaporean government-linked commercial and defense engineering group. Its key businesses include aircraft maintenance, repair and overhaul services, in which it is the world's largest independent third-party provider. The company's fastest-growing activities involve applications to defense and smart city solutions where it provides tolling solutions, traffic control systems, command and control dashboards, cybersecurity tools, and other related components. Around two thirds of the company's revenue comes from commercial clients while the remainder is defense.
69GF Score
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