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
Steel Partners Holdings LP had a gross margin of 44.45% for the quarter that ended in Sep. 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.
Steel Partners Holdings LP Gross Margin % Related Terms
Steel Partners Holdings LP 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 Conglomerates subindustry, Steel Partners Holdings LP'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.
Steel Partners Holdings LP Gross Margin % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Steel Partners Holdings LP's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Steel Partners Holdings LP'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.
Steel Partners Holdings LP (SPLP) has a Gross Margin % of 44.45% as of Sep. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Steel Partners Holdings LP and its competitors. This is 30% above median its historical median of 34.27. Over the past decade, Steel Partners Holdings LP's Gross Margin % has ranged from 29.91 to 44.11.
Is Steel Partners Holdings LP's Gross Margin % too high?
Steel Partners Holdings LP's current Gross Margin % of 44.45% is 30% above median its 10-year median of 34.27. Over the past 10 years, this metric has ranged from a low of 29.91 to a high of 44.11. The Conglomerates industry median Gross Margin % is 25.85. Steel Partners Holdings LP's value of 44.45% is 72% above this industry median. Overall, Steel Partners Holdings LP has a GF Score™ of 66/100, reflecting its overall financial health beyond just this single metric.
How does Steel Partners Holdings LP's Gross Margin % compare to MATW and DLX?
Steel Partners Holdings LP's Gross Margin % of 44.45% can be compared against companies in the Conglomerates industry. The industry median Gross Margin % is 25.85. Steel Partners Holdings LP's value of 44.45% is 72% above this benchmark. Historically, Steel Partners Holdings LP's own Gross Margin % has ranged from 29.91 to 44.11 over the past decade. While the company's 10-year median is 34.27 vs. the industry median of 25.85, Steel Partners Holdings LP 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 Conglomerates company?
The median Gross Margin % among Conglomerates companies is 25.85, based on 511 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. Steel Partners Holdings LP's current Gross Margin % of 44.45% is 72% 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 Steel Partners Holdings LP and its competitors. For the Conglomerates industry, the median Gross Margin % is 25.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Steel Partners Holdings LP's current Gross Margin % is 44.45%, which is 30% above median its own 10-year median of 34.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Steel Partners Holdings LP stock overvalued right now?
Steel Partners Holdings LP (SPLP) has a current Gross Margin % of 44.45%. The stock's GF Value™ is $51.26, compared to a current price of $50.00 — trading 2.5% below its estimated fair value. The current Gross Margin % is 44.45%, which is 30% above median its 10-year median of 34.27 and 72% above the Conglomerates industry median of 25.85. Steel Partners Holdings LP's overall GF Score™ is 66/100 with 4 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 Steel Partners Holdings LP (SPLP), the current Gross Margin % is 44.45% as of Sep. 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 Steel Partners Holdings LP (SPLP) Overvalued in 2026?
Based on GuruFocus' analysis, Steel Partners Holdings LP stock appears to be undervalued.
The current stock price of $50.00 is trading 2.5% below its estimated GF Value™ of $51.26.
Key valuation signals for SPLP:
Gross Margin %: 44.45% (30% above median its 10-year median of 34.27)
GF Value™: $51.26 vs. price of $50.00 (2.5% below fair value)
Industry Position: 72% above the Conglomerates median
No single metric tells the full story. See the SPLP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Steel Partners Holdings LP operates in industrial products, energy, defense, supply chain management and logistics, banking, and youth sports industries. Its segments include the Diversified Industrial segment comprised of manufacturers of engineered niche industrial products, joining materials, tubing, building materials, performance materials etc; the Energy segment provides drilling and production services to the oil and gas industry and owns a youth sports business; the Financial Services segment consists of the operations of WebBank, a Utah chartered industrial bank, which engages in full range of banking activities; The Supply Chain segment consists of end-to-end world-wide supply; and Corporate and Other consists of equity method and other investments, and cash and cash equivalents.
66GF Score
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