Carpenter TechnologySTU:XTY -1.56%65 Gross Margin % is 31.03% as of Mar. 2026, which is 95% above its 10-year median of 15.92. GuruFocus rates STU:XTY with a GF Score™ of 65/100 and a GF Value™ of €164.00 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 2,992 Industrial Products companies, Carpenter Technology ranks better than 57.79% 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
Carpenter Technology had a gross margin of 31.03% 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.
Carpenter Technology Gross Margin % Related Terms
Carpenter Technology Gross Margin % Historical Data
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The historical data trend for Carpenter Technology'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:XTY vs ATI, MLI, CMC: Gross Margin % Comparison
For the Metal Fabrication subindustry, Carpenter Technology'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.
Carpenter Technology Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Carpenter Technology's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Carpenter Technology'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.
Carpenter Technology (STU:XTY) has a Gross Margin % of 31.03% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Carpenter Technology and its competitors. This is 95% above median its historical median of 15.92. Over the past decade, Carpenter Technology's Gross Margin % has ranged from 0.07 to 29.73. According to the industry distribution chart, Carpenter Technology ranks #1263 out of 2992 companies in the Industrial Products industry, placing it in the top 42.2%.
Is Carpenter Technology's Gross Margin % too high?
Carpenter Technology's current Gross Margin % of 31.03% is 95% above median its 10-year median of 15.92. Over the past 10 years, this metric has ranged from a low of 0.07 to a high of 29.73. The Industrial Products industry median Gross Margin % is 26.82. Carpenter Technology's value of 31.03% is 15.7% above this industry median. Based on the distribution chart, Carpenter Technology ranks #1263 out of 2992 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Carpenter Technology has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Carpenter Technology's Gross Margin % compare to ATI and MLI?
According to the Industrial Products industry distribution chart, Carpenter Technology ranks #1263 out of 2992 companies for Gross Margin %. This puts Carpenter Technology in the upper half of its industry. The industry median Gross Margin % is 26.82. Carpenter Technology's value of 31.03% is 15.7% above this benchmark. Historically, Carpenter Technology's own Gross Margin % has ranged from 0.07 to 29.73 over the past decade. While the company's 10-year median is 15.92 vs. the industry median of 26.82, Carpenter Technology 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.82, based on 2,992 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. Carpenter Technology's current Gross Margin % of 31.03% is 15.7% 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 Carpenter Technology and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Carpenter Technology's current Gross Margin % is 31.03%, which is 95% above median its own 10-year median of 15.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Carpenter Technology stock overvalued right now?
Based on GuruFocus' analysis, Carpenter Technology (STU:XTY) is currently considered Significantly Overvalued. The stock's GF Value™ is €164.00, compared to a current price of €506.40 — trading 208.8% above its estimated fair value. The current Gross Margin % is 31.03%, which is 95% above median its 10-year median of 15.92 and 15.7% above the Industrial Products industry median of 26.82. Carpenter Technology's overall GF Score™ is 65/100 with 7 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 Carpenter Technology (STU:XTY), the current Gross Margin % is 31.03% 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 Carpenter Technology (STU:XTY) Overvalued in 2026?
Based on GuruFocus' analysis, Carpenter Technology stock appears to be overvalued.
The current stock price of €506.40 is trading 208.8% above its estimated GF Value™ of €164.00.
GuruFocus considers Carpenter Technology to be Significantly Overvalued.
Key valuation signals for STU:XTY:
Gross Margin %: 31.03% (95% above median its 10-year median of 15.92)
GF Value™: €164.00 vs. price of €506.40 (208.8% above fair value)
Industry Position: 15.7% above the Industrial Products median (#1263 of 2992)
No single metric tells the full story. See the STU:XTY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Carpenter Technology Corp supplies specialty metals to a variety of end markets, including aerospace and defense, industrial machinery and consumer durables, medical, and energy, among others. The company's reportable segments include; Specialty Alloys Operations and Performance Engineered Products. It generates maximum revenue from the Specialty Alloys Operations segment. The SAO segment is comprised of the company's alloy and stainless steel manufacturing operations. This includes operations performed at mills predominantly in Reading and Latrobe, Pennsylvania, and surrounding areas as well as South Carolina and Alabama. Geographically, the company derives its maximum revenue from the United States and the rest from Europe, Asia Pacific, Mexico, Canada, and other regions.
65GF Score
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