Inversiones La Construccion (XSGO:ILC) 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
Inversiones La Construccion had a gross margin of 4.29% 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.
Inversiones La Construccion Gross Margin % Related Terms
Inversiones La Construccion 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.
XSGO:ILC vs AFL, MET, PRU: Gross Margin % Comparison
For the Insurance - Life subindustry, Inversiones La Construccion'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.
Inversiones La Construccion Gross Margin % vs Insurance Industry
For the Insurance industry and Financial Services sector, Inversiones La Construccion's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Inversiones La Construccion'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.
Inversiones La Construccion (XSGO:ILC) has a Gross Margin % of 4.29% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Inversiones La Construccion and its competitors. This is 47% above median its historical median of 2.92. According to the industry distribution chart, Inversiones La Construccion ranks #55 out of 60 companies in the Insurance industry, placing it in the top 91.7%.
Is Inversiones La Construccion's Gross Margin % too high?
Inversiones La Construccion's current Gross Margin % of 4.29% is 47% above median its 10-year median of 2.92. The Insurance industry median Gross Margin % is 42.38. Inversiones La Construccion's value of 4.29% is 89.9% below this industry median. Based on the distribution chart, Inversiones La Construccion ranks #55 out of 60 companies in the Insurance industry, which is in the bottom quartile relative to peers. Overall, Inversiones La Construccion has a GF Score™ of 70/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Inversiones La Construccion's Gross Margin % compare to AFL and MET?
According to the Insurance industry distribution chart, Inversiones La Construccion ranks #55 out of 60 companies for Gross Margin %. This places Inversiones La Construccion in the lower half of its industry. The industry median Gross Margin % is 42.38. Inversiones La Construccion's value of 4.29% is 89.9% below this benchmark. While the company's 10-year median is 2.92 vs. the industry median of 42.38, Inversiones La Construccion 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 an Insurance company?
The median Gross Margin % among Insurance companies is 42.38, based on 60 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. Inversiones La Construccion's current Gross Margin % of 4.29% is 89.9% 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 Inversiones La Construccion and its competitors. For the Insurance industry, the median Gross Margin % is 42.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Inversiones La Construccion's current Gross Margin % is 4.29%, which is 47% above median its own 10-year median of 2.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Inversiones La Construccion stock overvalued right now?
Based on GuruFocus' analysis, Inversiones La Construccion (XSGO:ILC) is currently considered Significantly Overvalued. The stock's GF Value™ is CLP12,265.09, compared to a current price of CLP22,000.00 — trading 79.4% above its estimated fair value. The current Gross Margin % is 4.29%, which is 47% above median its 10-year median of 2.92 and 89.9% below the Insurance industry median of 42.38. Inversiones La Construccion's overall GF Score™ is 70/100 with 10 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 Inversiones La Construccion (XSGO:ILC), the current Gross Margin % is 4.29% 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 Inversiones La Construccion (XSGO:ILC) Overvalued in 2026?
Based on GuruFocus' analysis, Inversiones La Construccion stock appears to be overvalued.
The current stock price of CLP22,000.00 is trading 79.4% above its estimated GF Value™ of CLP12,265.09.
GuruFocus considers Inversiones La Construccion to be Significantly Overvalued.
Key valuation signals for XSGO:ILC:
Gross Margin %: 4.29% (47% above median its 10-year median of 2.92)
GF Value™: CLP12,265.09 vs. price of CLP22,000.00 (79.4% above fair value)
Industry Position: 89.9% below the Insurance median (#55 of 60)
No single metric tells the full story. See the XSGO:ILC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Inversiones La Construccion SA is a Chile-based holding company with its presence in Chile and Peru. Along with its subsidiaries, the company operates in the following business segments: AFP, ISAPRE, Insurance, Health, Banking, and Others. The majority of the group's revenue is generated from the Insurance segment, which provides individual, group, disability, and survivorship insurance, and life annuity products. The AFP segment includes the administration of pension funds; the ISAPRE segment includes the administration of health contributions; the Health segment provides health benefits and benefits, either directly or through the financing of these related or complementary activities; and the Bank segment represents results from the group's banking business.
70GF Score
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