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
Aeva Technologies had a gross margin of 31.00% 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.
Aeva Technologies Gross Margin % Related Terms
Aeva Technologies Gross Margin % Historical Data
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The historical data trend for Aeva Technologies'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 Software - Infrastructure subindustry, Aeva Technologies'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.
Aeva Technologies Gross Margin % vs Software Industry
For the Software industry and Technology sector, Aeva Technologies's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Aeva Technologies'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.
Aeva Technologies (AEVA) has a Gross Margin % of 31.00% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Aeva Technologies and its competitors. According to the industry distribution chart, Aeva Technologies ranks #2547 out of 2685 companies in the Software industry, placing it in the top 94.9%.
Is Aeva Technologies' Gross Margin % too high?
Aeva Technologies' current Gross Margin % is 31.00%. The Software industry median Gross Margin % is 40.45. Aeva Technologies' value of 31.00% is 23.4% below this industry median. Based on the distribution chart, Aeva Technologies ranks #2547 out of 2685 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Aeva Technologies has a GF Score™ of 69/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Aeva Technologies' Gross Margin % compare to PAYO and MQ?
According to the Software industry distribution chart, Aeva Technologies ranks #2547 out of 2685 companies for Gross Margin %. This places Aeva Technologies in the lower half of its industry. The industry median Gross Margin % is 40.45. Aeva Technologies' value of 31.00% is 23.4% below this benchmark. 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 Software company?
The median Gross Margin % among Software companies is 40.45, based on 2,685 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. Aeva Technologies's current Gross Margin % of 31.00% is 23.4% 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 Aeva Technologies and its competitors. For the Software industry, the median Gross Margin % is 40.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aeva Technologies's current Gross Margin % is 31.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aeva Technologies stock overvalued right now?
Based on GuruFocus' analysis, Aeva Technologies (AEVA) is currently considered Modestly Overvalued. The stock's GF Value™ is $16.78, compared to a current price of $20.84 — trading 24.2% above its estimated fair value. The current Gross Margin % is 31.00% and 23.4% below the Software industry median of 40.45. Aeva Technologies' overall GF Score™ is 69/100 with 6 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 Aeva Technologies (AEVA), the current Gross Margin % is 31.00% 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 Aeva Technologies (AEVA) Overvalued in 2026?
Based on GuruFocus' analysis, Aeva Technologies stock appears to be overvalued.
The current stock price of $20.84 is trading 24.2% above its estimated GF Value™ of $16.78.
GuruFocus considers Aeva Technologies to be Modestly Overvalued.
Key valuation signals for AEVA:
Gross Margin %: 31.00%
GF Value™: $16.78 vs. price of $20.84 (24.2% above fair value)
Industry Position: 23.4% below the Software median (#2547 of 2685)
No single metric tells the full story. See the AEVA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aeva Technologies Inc through its Frequency Modulated Continuous Wave (FMCW) sensing technology, designs a 4D LiDAR-on-chip that, along with its proprietary software applications, has the potential to enable the adoption of LiDAR across broad applications from automated driving to consumer electronics, consumer health, industrial automation, and security application. The 4D LiDAR sensors are designed to detect both velocity and position, supporting perception and decision-making in automated systems. The company operates in North America, EMEA, and Asia. The company's revenue consists of sales of perception solutions or sensing systems and non-recurring engineering services. Geographically, it derives the majority of its revenue from North America.
69GF Score
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