Friedrich Vorwerk Group SE (WBO:VH2) 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
Friedrich Vorwerk Group SE had a gross margin of 62.90% 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.
Friedrich Vorwerk Group SE Gross Margin % Related Terms
Friedrich Vorwerk Group SE 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.
WBO:VH2 vs PWR, FIX, EME: Gross Margin % Comparison
For the Engineering & Construction subindustry, Friedrich Vorwerk Group SE'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.
Friedrich Vorwerk Group SE Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Friedrich Vorwerk Group SE's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Friedrich Vorwerk Group SE'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.
Friedrich Vorwerk Group SE (WBO:VH2) has a Gross Margin % of 62.90% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Friedrich Vorwerk Group SE and its competitors. This is 16% above median its historical median of 54.35. Over the past decade, Friedrich Vorwerk Group SE's Gross Margin % has ranged from 47.58 to 61.59. According to the industry distribution chart, Friedrich Vorwerk Group SE ranks #140 out of 1724 companies in the Construction industry, placing it in the top 8.1%.
Is Friedrich Vorwerk Group SE's Gross Margin % too high?
Friedrich Vorwerk Group SE's current Gross Margin % of 62.90% is 16% above median its 10-year median of 54.35. Over the past 10 years, this metric has ranged from a low of 47.58 to a high of 61.59. The Construction industry median Gross Margin % is 20.71. Friedrich Vorwerk Group SE's value of 62.90% is 203.8% above this industry median. Based on the distribution chart, Friedrich Vorwerk Group SE ranks #140 out of 1724 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Friedrich Vorwerk Group SE has a GF Score™ of 60/100, reflecting its overall financial health beyond just this single metric.
How does Friedrich Vorwerk Group SE's Gross Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Friedrich Vorwerk Group SE ranks #140 out of 1724 companies for Gross Margin %. This places Friedrich Vorwerk Group SE in the top 8% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 20.71. Friedrich Vorwerk Group SE's value of 62.90% is 203.8% above this benchmark. Historically, Friedrich Vorwerk Group SE's own Gross Margin % has ranged from 47.58 to 61.59 over the past decade. While the company's 10-year median is 54.35 vs. the industry median of 20.71, Friedrich Vorwerk Group SE 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 Construction company?
The median Gross Margin % among Construction companies is 20.71, based on 1,724 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. Friedrich Vorwerk Group SE's current Gross Margin % of 62.90% is 203.8% 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 Friedrich Vorwerk Group SE and its competitors. For the Construction industry, the median Gross Margin % is 20.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Friedrich Vorwerk Group SE's current Gross Margin % is 62.90%, which is 16% above median its own 10-year median of 54.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Friedrich Vorwerk Group SE stock overvalued right now?
Friedrich Vorwerk Group SE (WBO:VH2) has a current Gross Margin % of 62.90%. The stock's GF Value™ is €38.73, compared to a current price of €70.85 — trading 82.9% above its estimated fair value. The current Gross Margin % is 62.90%, which is 16% above median its 10-year median of 54.35 and 203.8% above the Construction industry median of 20.71. Friedrich Vorwerk Group SE's overall GF Score™ is 60/100 with 1 warning sign 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 Friedrich Vorwerk Group SE (WBO:VH2), the current Gross Margin % is 62.90% 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 Friedrich Vorwerk Group SE (WBO:VH2) Overvalued in 2026?
Based on GuruFocus' analysis, Friedrich Vorwerk Group SE stock appears to be overvalued.
The current stock price of €70.85 is trading 82.9% above its estimated GF Value™ of €38.73.
Key valuation signals for WBO:VH2:
Gross Margin %: 62.90% (16% above median its 10-year median of 54.35)
GF Value™: €38.73 vs. price of €70.85 (82.9% above fair value)
Industry Position: 203.8% above the Construction median (#140 of 1724)
No single metric tells the full story. See the WBO:VH2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Friedrich Vorwerk Group SE is a driver of the European energy transition. It has four segments Natural Gas segment, which is the key revenue driver, comprises the transport and conversion of raw natural gas into treated natural gas, the electricity segment provides infrastructure for the underground transport and conversion of electricity, which is generated from non-fossil energy sources such as wind, solar, hydro, and regenerative resources, Clean Hydrogen segment comprises the conversion of energy from energy sources into clean hydrogen and its transportation to consumers, Adjacent Opportunities segment concentrates on the related turnkey technologies, and the majority of its revenue comes from Adjacent Opportunities.
60GF Score
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