Solstice Advanced MaterialsSOLS -4.86%19 Gross Margin % is 31.96% as of Mar. 2026, which is 8% below its 10-year median of 34.90. GuruFocus rates SOLS with a GF Score™ of 19/100. The stock has 6 warning signs investors should review. Among 1,561 Chemicals companies, Solstice Advanced Materials ranks better than 67.65% 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
Solstice Advanced Materials had a gross margin of 31.96% for the quarter that ended in Mar. 2026 => 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.
Solstice Advanced Materials Gross Margin % Related Terms
Solstice Advanced Materials 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 Specialty Chemicals subindustry, Solstice Advanced Materials'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.
Solstice Advanced Materials Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Solstice Advanced Materials's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Solstice Advanced Materials'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.
Solstice Advanced Materials (SOLS) has a Gross Margin % of 31.96% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Solstice Advanced Materials and its competitors. This is near median its historical median of 34.90. Over the past decade, Solstice Advanced Materials' Gross Margin % has ranged from 31.20 to 39.11. According to the industry distribution chart, Solstice Advanced Materials ranks #505 out of 1561 companies in the Chemicals industry, placing it in the top 32.4%.
Is Solstice Advanced Materials' Gross Margin % too high?
Solstice Advanced Materials' current Gross Margin % of 31.96% is near median its 10-year median of 34.90. Over the past 10 years, this metric has ranged from a low of 31.20 to a high of 39.11. The Chemicals industry median Gross Margin % is 23.35. Solstice Advanced Materials' value of 31.96% is 36.9% above this industry median. Based on the distribution chart, Solstice Advanced Materials ranks #505 out of 1561 companies in the Chemicals industry, which is above the industry midpoint. Overall, Solstice Advanced Materials has a GF Score™ of 19/100, reflecting its overall financial health beyond just this single metric.
How does Solstice Advanced Materials' Gross Margin % compare to RPM and WLK?
According to the Chemicals industry distribution chart, Solstice Advanced Materials ranks #505 out of 1561 companies for Gross Margin %. This puts Solstice Advanced Materials in the upper half of its industry. The industry median Gross Margin % is 23.35. Solstice Advanced Materials' value of 31.96% is 36.9% above this benchmark. Historically, Solstice Advanced Materials' own Gross Margin % has ranged from 31.20 to 39.11 over the past decade. While the company's 10-year median is 34.90 vs. the industry median of 23.35, Solstice Advanced Materials 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 23.35, based on 1,561 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. Solstice Advanced Materials's current Gross Margin % of 31.96% is 36.9% 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 Solstice Advanced Materials and its competitors. For the Chemicals industry, the median Gross Margin % is 23.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Solstice Advanced Materials's current Gross Margin % is 31.96%, which is near median its own 10-year median of 34.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Solstice Advanced Materials stock overvalued right now?
Solstice Advanced Materials (SOLS) has a current Gross Margin % of 31.96%. The current Gross Margin % is 31.96%, which is near median its 10-year median of 34.90 and 36.9% above the Chemicals industry median of 23.35. Solstice Advanced Materials' overall GF Score™ is 19/100 with 6 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 Solstice Advanced Materials (SOLS), the current Gross Margin % is 31.96% 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.
Solstice Advanced Materials is a diversified specialty chemicals company created in late 2025 after being spun off from Honeywell. It sells chemicals and materials to a wide range of end markets. Its largest product category is refrigerants used in heating, ventilation and air conditioning systems, and autos, where Solstice sells low global warming potential refrigerants. The company also sells materials used for building and construction, semiconductor production, healthcare packaging, and defense. Additionally, Solstice runs the only US uranium conversion business currently in operation.
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