SMCSMECF -6.27%96 Gross Margin % is 45.54% as of Dec. 2025, which is 8% below its 10-year median of 49.63. GuruFocus rates SMECF with a GF Score™ of 96/100 and a GF Value™ of $455.05 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 3,003 Industrial Products companies, SMC ranks better than 84.95% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. SMC's Gross Profit for the
three
months ended in Dec. 2025 was $612 Mil. SMC's Revenue for the
three
months ended in Dec. 2025 was $1,345 Mil. Therefore, SMC's Gross Margin % for the quarter that ended in Dec. 2025 was 45.54%.
Warning Sign:
SMC Corp gross margin has been in long-term decline. The average rate of decline per year is -1.9%.
The historical rank and industry rank for SMC's Gross Margin % or its related term are showing as below:
SMECF'
s Gross Margin % Range Over the Past 10 Years
Min: 45.27 Med: 49.63 Max: 51.55
Current: 45.27
During the past 13 years, the highestGross Margin % of SMC was 51.55%. The lowest was 45.27%. And the median was 49.63%.
SMECF's Gross Margin % is ranked better than 84.95% of 3003
companies
in the Industrial Products industry
Industry Median: 26.79
vs SMECF: 45.27
SMC had a gross margin of 45.54% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for SMC was -1.90% per year.
SMC (OTCPK:SMECF) 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
SMC had a gross margin of 45.54% for the quarter that ended in Dec. 2025 => 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.
SMC Gross Margin % Related Terms
SMC Gross Margin % Historical Data
* Premium members only.
The historical data trend for SMC'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.
For the Specialty Industrial Machinery subindustry, SMC'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.
SMC Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, SMC's Gross Margin % distribution charts can be found below:
* The bar in red indicates where SMC'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.
SMC (SMECF) has a Gross Margin % of 45.54% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on SMC and its competitors. This is near median its historical median of 49.63. Over the past decade, SMC's Gross Margin % has ranged from 45.27 to 51.55. According to the industry distribution chart, SMC ranks #452 out of 3003 companies in the Industrial Products industry, placing it in the top 15.1%.
Is SMC's Gross Margin % too high?
SMC's current Gross Margin % of 45.54% is near median its 10-year median of 49.63. Over the past 10 years, this metric has ranged from a low of 45.27 to a high of 51.55. The Industrial Products industry median Gross Margin % is 26.79. SMC's value of 45.54% is 70% above this industry median. Based on the distribution chart, SMC ranks #452 out of 3003 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, SMC has a GF Score™ of 96/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does SMC's Gross Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, SMC ranks #452 out of 3003 companies for Gross Margin %. This places SMC in the top 15% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 26.79. SMC's value of 45.54% is 70% above this benchmark. Historically, SMC's own Gross Margin % has ranged from 45.27 to 51.55 over the past decade. While the company's 10-year median is 49.63 vs. the industry median of 26.79, SMC 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 26.79, based on 3,003 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. SMC's current Gross Margin % of 45.54% is 70% 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 SMC and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SMC's current Gross Margin % is 45.54%, which is near median its own 10-year median of 49.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SMC stock overvalued right now?
Based on GuruFocus' analysis, SMC (SMECF) is currently considered Modestly Undervalued. The stock's GF Value™ is $455.05, compared to a current price of $410.75 — trading 9.7% below its estimated fair value. The current Gross Margin % is 45.54%, which is near median its 10-year median of 49.63 and 70% above the Industrial Products industry median of 26.79. SMC's overall GF Score™ is 96/100 with 3 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 SMC (SMECF), the current Gross Margin % is 45.54% 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 SMC (SMECF) Overvalued in 2026?
Based on GuruFocus' analysis, SMC stock appears to be undervalued.
The current stock price of $410.75 is trading 9.7% below its estimated GF Value™ of $455.05.
GuruFocus considers SMC to be Modestly Undervalued.
Key valuation signals for SMECF:
Gross Margin %: 45.54% (near median its 10-year median of 49.63)
GF Value™: $455.05 vs. price of $410.75 (9.7% below fair value)
Industry Position: 70% above the Industrial Products median (#452 of 3003)
No single metric tells the full story. See the SMECF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SMC Corp manufactures automatic control and filtration equipment. Its main products include directional control devices, drive systems, pneumatic auxiliary equipment, temperature regulation units, and sensors. These are utilized across a wide range of industries, including steel, chemicals, food processing, physics, medical devices, and other related fields. The company's products are widely applied across sectors such as steel, chemicals, food processing, physics, medical devices, and other related industries.
96GF Score
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