Smith-MidlandSMID +1.11%90 Gross Margin % is 19.95% as of Mar. 2026, which is 22% below its 10-year median of 25.67. GuruFocus rates SMID with a GF Score™ of 90/100 and a GF Value™ of $42.54 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 398 Building Materials companies, Smith-Midland ranks worse than 54.02% 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
Smith-Midland had a gross margin of 19.95% for the quarter that ended in Mar. 2026 => 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.
Smith-Midland Gross Margin % Related Terms
Smith-Midland Gross Margin % Historical Data
* Premium members only.
The historical data trend for Smith-Midland'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.
SMID vs PHCI, RETO, BASA: Gross Margin % Comparison
For the Building Materials subindustry, Smith-Midland'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.
Smith-Midland Gross Margin % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Smith-Midland's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Smith-Midland'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.
Smith-Midland (SMID) has a Gross Margin % of 19.95% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Smith-Midland and its competitors. This is 22% below median its historical median of 25.67. Over the past decade, Smith-Midland's Gross Margin % has ranged from 17.88 to 28.47. According to the industry distribution chart, Smith-Midland ranks #215 out of 398 companies in the Building Materials industry, placing it in the top 54%.
Is Smith-Midland's Gross Margin % too high?
Smith-Midland's current Gross Margin % of 19.95% is 22% below median its 10-year median of 25.67. Over the past 10 years, this metric has ranged from a low of 17.88 to a high of 28.47. The Building Materials industry median Gross Margin % is 26.19. Smith-Midland's value of 19.95% is 23.8% below this industry median. Based on the distribution chart, Smith-Midland ranks #215 out of 398 companies in the Building Materials industry, which is below the industry midpoint. Overall, Smith-Midland has a GF Score™ of 90/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Smith-Midland's Gross Margin % compare to PHCI and RETO?
According to the Building Materials industry distribution chart, Smith-Midland ranks #215 out of 398 companies for Gross Margin %. This places Smith-Midland in the lower half of its industry. The industry median Gross Margin % is 26.19. Smith-Midland's value of 19.95% is 23.8% below this benchmark. Historically, Smith-Midland's own Gross Margin % has ranged from 17.88 to 28.47 over the past decade. While the company's 10-year median is 25.67 vs. the industry median of 26.19, Smith-Midland 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 a Building Materials company?
The median Gross Margin % among Building Materials companies is 26.19, based on 398 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. Smith-Midland's current Gross Margin % of 19.95% is 23.8% 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 Smith-Midland and its competitors. For the Building Materials industry, the median Gross Margin % is 26.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Smith-Midland's current Gross Margin % is 19.95%, which is 22% below median its own 10-year median of 25.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Smith-Midland stock overvalued right now?
Based on GuruFocus' analysis, Smith-Midland (SMID) is currently considered Significantly Undervalued. The stock's GF Value™ is $42.54, compared to a current price of $30.14 — trading 29.1% below its estimated fair value. The current Gross Margin % is 19.95%, which is 22% below median its 10-year median of 25.67 and 23.8% below the Building Materials industry median of 26.19. Smith-Midland's overall GF Score™ is 90/100 with 1 warning sign 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 Smith-Midland (SMID), the current Gross Margin % is 19.95% 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 Smith-Midland (SMID) Overvalued in 2026?
Based on GuruFocus' analysis, Smith-Midland stock appears to be undervalued.
The current stock price of $30.14 is trading 29.1% below its estimated GF Value™ of $42.54.
GuruFocus considers Smith-Midland to be Significantly Undervalued.
Key valuation signals for SMID:
Gross Margin %: 19.95% (22% below median its 10-year median of 25.67)
GF Value™: $42.54 vs. price of $30.14 (29.1% below fair value)
Industry Position: 23.8% below the Building Materials median (#215 of 398)
No single metric tells the full story. See the SMID stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Smith-Midland Corp through its subsidiaries invents, develops, manufactures, markets, sells, and installs precast concrete products for primary use in the construction, highway, utilities, and farming industries. The firm's customers are general contractors and federal, state, and local transportation authorities. Its products include Slenderwall, JJhooks, Softsound, Sierra Wall and Easi set. A substantial portion of the company's business is derived from local, state, and federal building projects. The company generates revenues predominantly from the sale, leasing, licensing, shipping, and installation of precast concrete products for the construction, utility, and farming industries.
90GF Score
Get the complete analysis for SMID
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
SMID has been successfully added to your 
