LSB IndustriesSTU:LS3 -3.11%55 Gross Margin % is 21.12% as of Mar. 2026, which is 202% above its 10-year median of 7.00. GuruFocus rates STU:LS3 with a GF Score™ of 55/100 and a GF Value™ of €8.22 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 1,564 Chemicals companies, LSB Industries ranks worse than 60.49% 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
LSB Industries had a gross margin of 21.12% 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.
LSB Industries Gross Margin % Related Terms
LSB Industries Gross Margin % Historical Data
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The historical data trend for LSB Industries'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.
STU:LS3 vs ASPI, WLKP, GPRE: Gross Margin % Comparison
For the Chemicals subindustry, LSB Industries'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.
LSB Industries Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, LSB Industries's Gross Margin % distribution charts can be found below:
* The bar in red indicates where LSB Industries'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.
LSB Industries (STU:LS3) has a Gross Margin % of 21.12% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on LSB Industries and its competitors. This is 202% above median its historical median of 7.00. According to the industry distribution chart, LSB Industries ranks #946 out of 1564 companies in the Chemicals industry, placing it in the top 60.5%.
Is LSB Industries' Gross Margin % too high?
LSB Industries' current Gross Margin % of 21.12% is 202% above median its 10-year median of 7.00. The Chemicals industry median Gross Margin % is 23.38. LSB Industries' value of 21.12% is 9.6% below this industry median. Based on the distribution chart, LSB Industries ranks #946 out of 1564 companies in the Chemicals industry, which is below the industry midpoint. Overall, LSB Industries has a GF Score™ of 55/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does LSB Industries' Gross Margin % compare to ASPI and WLKP?
According to the Chemicals industry distribution chart, LSB Industries ranks #946 out of 1564 companies for Gross Margin %. This places LSB Industries in the lower half of its industry. The industry median Gross Margin % is 23.38. LSB Industries' value of 21.12% is 9.6% below this benchmark. While the company's 10-year median is 7.00 vs. the industry median of 23.38, LSB Industries 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 Chemicals company?
The median Gross Margin % among Chemicals companies is 23.38, based on 1,564 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. LSB Industries's current Gross Margin % of 21.12% is 9.6% 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 LSB Industries and its competitors. For the Chemicals industry, the median Gross Margin % is 23.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LSB Industries's current Gross Margin % is 21.12%, which is 202% above median its own 10-year median of 7.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LSB Industries stock overvalued right now?
Based on GuruFocus' analysis, LSB Industries (STU:LS3) is currently considered Modestly Overvalued. The stock's GF Value™ is €8.22, compared to a current price of €9.35 — trading 13.7% above its estimated fair value. The current Gross Margin % is 21.12%, which is 202% above median its 10-year median of 7.00 and 9.6% below the Chemicals industry median of 23.38. LSB Industries' overall GF Score™ is 55/100 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 LSB Industries (STU:LS3), the current Gross Margin % is 21.12% 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 LSB Industries (STU:LS3) Overvalued in 2026?
Based on GuruFocus' analysis, LSB Industries stock appears to be overvalued.
The current stock price of €9.35 is trading 13.7% above its estimated GF Value™ of €8.22.
GuruFocus considers LSB Industries to be Modestly Overvalued.
Key valuation signals for STU:LS3:
Gross Margin %: 21.12% (202% above median its 10-year median of 7.00)
GF Value™: €8.22 vs. price of €9.35 (13.7% above fair value)
Industry Position: 9.6% below the Chemicals median (#946 of 1564)
No single metric tells the full story. See the STU:LS3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
LSB Industries Inc is engaged in the manufacturing and sale of chemical products in the United States. The company manufactures and sells chemical products for the agricultural and industrial sectors. Its products include ammonia, fertilizer grade ammonium nitrate (AN and HDAN), and urea ammonia nitrate (UAN) for agricultural applications; high purity and commercial grade ammonia, sulfuric acids, concentrated, blended, and regular nitric acid, mixed nitrating acids, carbon dioxide, and diesel exhaust fluid for industrial applications; and industrial grade AN (LDAN) and AN solutions for mining applications. Its products are sold through distributors and directly to end customers throughout the United States and other parts of North America.
55GF Score
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