Usinas Siderurgicas de Minas Gerais (OTCPK:USDMY) 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
Usinas Siderurgicas de Minas Gerais had a gross margin of 12.07% for the quarter that ended in Mar. 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.
Usinas Siderurgicas de Minas Gerais Gross Margin % Related Terms
Usinas Siderurgicas de Minas Gerais 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.
Usinas Siderurgicas de Minas Gerais Gross Margin % Chart
For the Steel subindustry, Usinas Siderurgicas de Minas Gerais'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.
Usinas Siderurgicas de Minas Gerais Gross Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Usinas Siderurgicas de Minas Gerais's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Usinas Siderurgicas de Minas Gerais'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.
Usinas Siderurgicas de Minas Gerais (USDMY) has a Gross Margin % of 12.07% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Usinas Siderurgicas de Minas Gerais and its competitors. This is 13% below median its historical median of 13.89. Over the past decade, Usinas Siderurgicas de Minas Gerais' Gross Margin % has ranged from 5.76 to 33.42. According to the industry distribution chart, Usinas Siderurgicas de Minas Gerais ranks #398 out of 597 companies in the Steel industry, placing it in the top 66.7%.
Is Usinas Siderurgicas de Minas Gerais' Gross Margin % too high?
Usinas Siderurgicas de Minas Gerais' current Gross Margin % of 12.07% is 13% below median its 10-year median of 13.89. Over the past 10 years, this metric has ranged from a low of 5.76 to a high of 33.42. The Steel industry median Gross Margin % is 12.60. Usinas Siderurgicas de Minas Gerais' value of 12.07% is 4.2% below this industry median. Based on the distribution chart, Usinas Siderurgicas de Minas Gerais ranks #398 out of 597 companies in the Steel industry, which is below the industry midpoint. Overall, Usinas Siderurgicas de Minas Gerais has a GF Scoreâ„¢ of 60/100, reflecting its overall financial health beyond just this single metric.
How does Usinas Siderurgicas de Minas Gerais' Gross Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Usinas Siderurgicas de Minas Gerais ranks #398 out of 597 companies for Gross Margin %. This places Usinas Siderurgicas de Minas Gerais in the lower half of its industry. The industry median Gross Margin % is 12.60. Usinas Siderurgicas de Minas Gerais' value of 12.07% is 4.2% below this benchmark. Historically, Usinas Siderurgicas de Minas Gerais' own Gross Margin % has ranged from 5.76 to 33.42 over the past decade. While the company's 10-year median is 13.89 vs. the industry median of 12.60, Usinas Siderurgicas de Minas Gerais 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 Steel company?
The median Gross Margin % among Steel companies is 12.60, based on 597 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. Usinas Siderurgicas de Minas Gerais's current Gross Margin % of 12.07% is 4.2% 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 Usinas Siderurgicas de Minas Gerais and its competitors. For the Steel industry, the median Gross Margin % is 12.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Usinas Siderurgicas de Minas Gerais's current Gross Margin % is 12.07%, which is 13% below median its own 10-year median of 13.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Usinas Siderurgicas de Minas Gerais stock overvalued right now?
Usinas Siderurgicas de Minas Gerais (USDMY) has a current Gross Margin % of 12.07%. The stock's GF Value™ is $18.50, compared to a current price of $26.23 — trading 41.8% above its estimated fair value. The current Gross Margin % is 12.07%, which is 13% below median its 10-year median of 13.89 and 4.2% below the Steel industry median of 12.60. Usinas Siderurgicas de Minas Gerais' overall GF Score™ is 60/100 with 5 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 Usinas Siderurgicas de Minas Gerais (USDMY), the current Gross Margin % is 12.07% 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 Usinas Siderurgicas de Minas Gerais (USDMY) Overvalued in 2026?
Based on GuruFocus' analysis, Usinas Siderurgicas de Minas Gerais stock appears to be overvalued.
The current stock price of $26.23 is trading 41.8% above its estimated GF Value™ of $18.50.
Key valuation signals for USDMY:
Gross Margin %: 12.07% (13% below median its 10-year median of 13.89)
GF Value™: $18.50 vs. price of $26.23 (41.8% above fair value)
Industry Position: 4.2% below the Steel median (#398 of 597)
No single metric tells the full story. See the USDMY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Usinas Siderurgicas de Minas Gerais Business Description
Usinas Siderurgicas de Minas Gerais SA is a Brazil-based company engaged in producing and distributing flat steel products. The company's product portfolio comprises ordinary heavy plates, Sincron series premium heavy plates, hot strips, cold-rolled, and galvanized products. These products are used in automotive, civil construction, railway, electric, white goods, offshore platforms, and agricultural and construction machinery. The Brazilian domestic market represents the majority of the company's sales, while the United States, Argentina, and Turkey are the export destination markets for the company.
60GF Score
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