Scandinavian Tobacco Group ASSTBGY +2.00%68 Gross Margin % is 44.31% as of Mar. 2026, which is 7% below its 10-year median of 47.85. GuruFocus rates STBGY with a GF Score™ of 68/100 and a GF Value™ of $8.36 (Significantly Undervalued). The stock has 8 warning signs investors should review. Among 47 Tobacco Products companies, Scandinavian Tobacco Group AS ranks better than 63.83% on this metric.
Scandinavian Tobacco Group AS (OTCPK:STBGY) 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
Scandinavian Tobacco Group AS had a gross margin of 44.31% for the quarter that ended in Mar. 2026 => 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.
Scandinavian Tobacco Group AS Gross Margin % Related Terms
Scandinavian Tobacco Group AS 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.
Scandinavian Tobacco Group AS Gross Margin % Chart
For the Tobacco subindustry, Scandinavian Tobacco Group AS'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.
Scandinavian Tobacco Group AS Gross Margin % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Scandinavian Tobacco Group AS's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Scandinavian Tobacco Group AS'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.
Scandinavian Tobacco Group AS (STBGY) has a Gross Margin % of 44.31% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Scandinavian Tobacco Group AS and its competitors. This is near median its historical median of 47.85. Over the past decade, Scandinavian Tobacco Group AS's Gross Margin % has ranged from 44.28 to 49.96. According to the industry distribution chart, Scandinavian Tobacco Group AS ranks #17 out of 47 companies in the Tobacco Products industry, placing it in the top 36.2%.
Is Scandinavian Tobacco Group AS's Gross Margin % too high?
Scandinavian Tobacco Group AS's current Gross Margin % of 44.31% is near median its 10-year median of 47.85. Over the past 10 years, this metric has ranged from a low of 44.28 to a high of 49.96. The Tobacco Products industry median Gross Margin % is 33.29. Scandinavian Tobacco Group AS's value of 44.31% is 33.1% above this industry median. Based on the distribution chart, Scandinavian Tobacco Group AS ranks #17 out of 47 companies in the Tobacco Products industry, which is above the industry midpoint. Overall, Scandinavian Tobacco Group AS has a GF Score™ of 68/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Scandinavian Tobacco Group AS's Gross Margin % compare to PM and MO?
According to the Tobacco Products industry distribution chart, Scandinavian Tobacco Group AS ranks #17 out of 47 companies for Gross Margin %. This puts Scandinavian Tobacco Group AS in the upper half of its industry. The industry median Gross Margin % is 33.29. Scandinavian Tobacco Group AS's value of 44.31% is 33.1% above this benchmark. Historically, Scandinavian Tobacco Group AS's own Gross Margin % has ranged from 44.28 to 49.96 over the past decade. While the company's 10-year median is 47.85 vs. the industry median of 33.29, Scandinavian Tobacco Group AS 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 Tobacco Products company?
The median Gross Margin % among Tobacco Products companies is 33.29, based on 47 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. Scandinavian Tobacco Group AS's current Gross Margin % of 44.31% is 33.1% 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 Scandinavian Tobacco Group AS and its competitors. For the Tobacco Products industry, the median Gross Margin % is 33.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Scandinavian Tobacco Group AS's current Gross Margin % is 44.31%, which is near median its own 10-year median of 47.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Scandinavian Tobacco Group AS stock overvalued right now?
Based on GuruFocus' analysis, Scandinavian Tobacco Group AS (STBGY) is currently considered Significantly Undervalued. The stock's GF Value™ is $8.36, compared to a current price of $5.11 — trading 38.9% below its estimated fair value. The current Gross Margin % is 44.31%, which is near median its 10-year median of 47.85 and 33.1% above the Tobacco Products industry median of 33.29. Scandinavian Tobacco Group AS's overall GF Score™ is 68/100 with 8 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 Scandinavian Tobacco Group AS (STBGY), the current Gross Margin % is 44.31% 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 Scandinavian Tobacco Group AS (STBGY) Overvalued in 2026?
Based on GuruFocus' analysis, Scandinavian Tobacco Group AS stock appears to be undervalued.
The current stock price of $5.11 is trading 38.9% below its estimated GF Value™ of $8.36.
GuruFocus considers Scandinavian Tobacco Group AS to be Significantly Undervalued.
Key valuation signals for STBGY:
Gross Margin %: 44.31% (near median its 10-year median of 47.85)
GF Value™: $8.36 vs. price of $5.11 (38.9% below fair value)
Industry Position: 33.1% above the Tobacco Products median (#17 of 47)
No single metric tells the full story. See the STBGY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Scandinavian Tobacco Group AS Business Description
Scandinavian Tobacco Group AS offers cigars, pipe tobacco, and accessories in North America, Europe, and Australia. It operates in three segments: North America online and retail, which includes direct to consumer sales of all product categories sold via the online, catalogue and retail channel in North America. North America branded and the Rest of the World, which provides its products to wholesalers and distributors; Europe Branded comprises sale of all product categories to wholesalers, distributors and direct to retail in Germany, Denmark, Sweden, France, Italy, Belgium, the Netherlands, Luxembourg, Spain, Portugal, the UK, and Ireland.
68GF Score
Get the complete analysis for STBGY
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
STBGY has been successfully added to your 
