Southstone MineralsTSXV:SML Gross Margin % is 10.61% as of Feb. 2026, which is 28% below its 10-year median of 14.67. The stock has 4 warning signs investors should review.
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
Southstone Minerals had a gross margin of 10.61% for the quarter that ended in Feb. 2026 => No sustainable 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.
Southstone Minerals Gross Margin % Related Terms
Southstone Minerals Gross Margin % Historical Data
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The historical data trend for Southstone Minerals'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.
For the Other Precious Metals & Mining subindustry, Southstone Minerals'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.
Southstone Minerals Gross Margin % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Southstone Minerals's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Southstone Minerals'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.
Southstone Minerals (TSXV:SML) has a Gross Margin % of 10.61% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Southstone Minerals and its competitors. This is 28% below median its historical median of 14.67. Over the past decade, Southstone Minerals' Gross Margin % has ranged from 0.12 to 99.34.
Is Southstone Minerals' Gross Margin % too high?
Southstone Minerals' current Gross Margin % of 10.61% is 28% below median its 10-year median of 14.67. Over the past 10 years, this metric has ranged from a low of 0.12 to a high of 99.34. The Metals & Mining industry median Gross Margin % is 26.20. Southstone Minerals' value of 10.61% is 59.5% below this industry median.
How does Southstone Minerals' Gross Margin % compare to competitors?
Southstone Minerals' Gross Margin % of 10.61% can be compared against companies in the Metals & Mining industry. The industry median Gross Margin % is 26.20. Southstone Minerals' value of 10.61% is 59.5% below this benchmark. Historically, Southstone Minerals' own Gross Margin % has ranged from 0.12 to 99.34 over the past decade. While the company's 10-year median is 14.67 vs. the industry median of 26.20, Southstone Minerals 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 Metals & Mining company?
The median Gross Margin % among Metals & Mining companies is 26.20, based on 729 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. Southstone Minerals's current Gross Margin % of 10.61% is 59.5% 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 Southstone Minerals and its competitors. For the Metals & Mining industry, the median Gross Margin % is 26.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Southstone Minerals's current Gross Margin % is 10.61%, which is 28% below median its own 10-year median of 14.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Southstone Minerals stock overvalued right now?
Southstone Minerals (TSXV:SML) has a current Gross Margin % of 10.61%. The current Gross Margin % is 10.61%, which is 28% below median its 10-year median of 14.67 and 59.5% below the Metals & Mining industry median of 26.20. 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 Southstone Minerals (TSXV:SML), the current Gross Margin % is 10.61% as of Feb. 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.
Southstone Minerals Ltd is a Canadian junior mining company engaged in the acquisition, exploration, evaluation, development, and mining of mineral properties. It holds the majority interest in the Oena Diamond Mine, an alluvial diamond property located in the Northern Cape Province, South Africa, that produces diamonds of varying sizes and characteristics, including occasional larger stones. The company generates revenue from the sale of diamonds.
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