MegachemSGX:5DS 45 Gross Margin % is 26.08% as of Dec. 2025, which is 6% above its 10-year median of 24.69. GuruFocus rates SGX:5DS with a GF Score™ of 45/100 and a GF Value™ of S$0.42 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 1,557 Chemicals companies, Megachem ranks better than 55.17% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Megachem's Gross Profit for the
six
months ended in Dec. 2025 was S$15.7 Mil. Megachem's Revenue for the
six
months ended in Dec. 2025 was S$60.3 Mil. Therefore, Megachem's Gross Margin % for the quarter that ended in Dec. 2025 was 26.08%.
The historical rank and industry rank for Megachem's Gross Margin % or its related term are showing as below:
SGX:5DS'
s Gross Margin % Range Over the Past 10 Years
Min: 18.29 Med: 24.69 Max: 25.56
Current: 25.56
During the past 13 years, the highestGross Margin % of Megachem was 25.56%. The lowest was 18.29%. And the median was 24.69%.
SGX:5DS's Gross Margin % is ranked better than 55.17% of 1557
companies
in the Chemicals industry
Industry Median: 23.49
vs SGX:5DS: 25.56
Megachem had a gross margin of 26.08% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Megachem was -0.70% per year.
Megachem (SGX:5DS) Gross Margin % Explanation
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
Megachem had a gross margin of 26.08% 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.
Megachem Gross Margin % Related Terms
Megachem Gross Margin % Historical Data
* Premium members only.
The historical data trend for Megachem'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.
SGX:5DS vs LIN, SHW, ECL: Gross Margin % Comparison
For the Specialty Chemicals subindustry, Megachem'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.
Megachem Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Megachem's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Megachem'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.
Megachem (SGX:5DS) has a Gross Margin % of 26.08% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Megachem and its competitors. This is near median its historical median of 24.69. Over the past decade, Megachem's Gross Margin % has ranged from 18.29 to 25.56. According to the industry distribution chart, Megachem ranks #698 out of 1557 companies in the Chemicals industry, placing it in the top 44.8%.
Is Megachem's Gross Margin % too high?
Megachem's current Gross Margin % of 26.08% is near median its 10-year median of 24.69. Over the past 10 years, this metric has ranged from a low of 18.29 to a high of 25.56. The Chemicals industry median Gross Margin % is 23.49. Megachem's value of 26.08% is 11% above this industry median. Based on the distribution chart, Megachem ranks #698 out of 1557 companies in the Chemicals industry, which is above the industry midpoint. Overall, Megachem has a GF Score™ of 45/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Megachem's Gross Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Megachem ranks #698 out of 1557 companies for Gross Margin %. This puts Megachem in the upper half of its industry. The industry median Gross Margin % is 23.49. Megachem's value of 26.08% is 11% above this benchmark. Historically, Megachem's own Gross Margin % has ranged from 18.29 to 25.56 over the past decade. While the company's 10-year median is 24.69 vs. the industry median of 23.49, Megachem 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 23.49, based on 1,557 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. Megachem's current Gross Margin % of 26.08% is 11% 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 Megachem and its competitors. For the Chemicals industry, the median Gross Margin % is 23.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Megachem's current Gross Margin % is 26.08%, which is near median its own 10-year median of 24.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Megachem stock overvalued right now?
Based on GuruFocus' analysis, Megachem (SGX:5DS) is currently considered Modestly Overvalued. The stock's GF Value™ is S$0.42, compared to a current price of S$0.49 — trading 16.7% above its estimated fair value. The current Gross Margin % is 26.08%, which is near median its 10-year median of 24.69 and 11% above the Chemicals industry median of 23.49. Megachem's overall GF Score™ is 45/100 with 7 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 Megachem (SGX:5DS), the current Gross Margin % is 26.08% 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 Megachem (SGX:5DS) Overvalued in 2026?
Based on GuruFocus' analysis, Megachem stock appears to be overvalued.
The current stock price of S$0.49 is trading 16.7% above its estimated GF Value™ of S$0.42.
GuruFocus considers Megachem to be Modestly Overvalued.
Key valuation signals for SGX:5DS:
Gross Margin %: 26.08% (near median its 10-year median of 24.69)
GF Value™: S$0.42 vs. price of S$0.49 (16.7% above fair value)
Industry Position: 11% above the Chemicals median (#698 of 1557)
No single metric tells the full story. See the SGX:5DS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Megachem Ltd is a specialty chemical solutions provider, offering integrated value-added services including contract manufacturing tailored to customers' needs, as well as distribution of specialty chemicals. The company offers various specialty chemicals comprising adhesives, resins, polymers, cooling brine, anti-foam, surfactant, biocide, heat transfer fluid, plasticizer, silicone fluid, etc. Its customers belong to various industries, including textile, construction, biotech, oil and gas, pulp and paper, electronics, industrial cleaning, and others. The majority of the company's revenue is derived from its chemical distribution business. Megachem's operating segments are: Singapore, which generates the maximum revenue, Malaysia. the United Kingdom, China, Middle East, and Others.
45GF Score
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