Aroa BiosurgeryASX:ARX +0.85%62 Gross Margin % is 85.77% as of Mar. 2026, which is 1% above its 10-year median of 84.90. GuruFocus rates ASX:ARX with a GF Score™ of 62/100 and a GF Value™ of A$0.80 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 805 Medical Devices & Instruments companies, Aroa Biosurgery ranks better than 93.91% on this metric.
The historical rank and industry rank for Aroa Biosurgery's Gross Margin % or its related term are showing as below:
ASX:ARX'
s Gross Margin % Range Over the Past 10 Years
Min: 69.48 Med: 84.9 Max: 85.73
Current: 85.53
During the past 7 years, the highestGross Margin % of Aroa Biosurgery was 85.73%. The lowest was 69.48%. And the median was 84.90%.
ASX:ARX's Gross Margin % is ranked better than 93.91% of 805
companies
in the Medical Devices & Instruments industry
Industry Median: 52.07
vs ASX:ARX: 85.53
Aroa Biosurgery had a gross margin of 85.77% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Aroa Biosurgery was 4.10% per year.
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
Aroa Biosurgery had a gross margin of 85.77% 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.
Aroa Biosurgery Gross Margin % Related Terms
Aroa Biosurgery Gross Margin % Historical Data
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The historical data trend for Aroa Biosurgery'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.
ASX:ARX vs ABT, SYK, MDT: Gross Margin % Comparison
For the Medical Devices subindustry, Aroa Biosurgery'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.
Aroa Biosurgery Gross Margin % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Aroa Biosurgery's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Aroa Biosurgery'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.
Aroa Biosurgery (ASX:ARX) has a Gross Margin % of 85.77% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Aroa Biosurgery and its competitors. This is near median its historical median of 84.90. Over the past decade, Aroa Biosurgery's Gross Margin % has ranged from 69.48 to 85.73. According to the industry distribution chart, Aroa Biosurgery ranks #49 out of 805 companies in the Medical Devices & Instruments industry, placing it in the top 6.1%.
Is Aroa Biosurgery's Gross Margin % too high?
Aroa Biosurgery's current Gross Margin % of 85.77% is near median its 10-year median of 84.90. Over the past 10 years, this metric has ranged from a low of 69.48 to a high of 85.73. The Medical Devices & Instruments industry median Gross Margin % is 52.07. Aroa Biosurgery's value of 85.77% is 64.7% above this industry median. Based on the distribution chart, Aroa Biosurgery ranks #49 out of 805 companies in the Medical Devices & Instruments industry, which is in the top quartile — a strong position relative to peers. Overall, Aroa Biosurgery has a GF Score™ of 62/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Aroa Biosurgery's Gross Margin % compare to ABT and SYK?
According to the Medical Devices & Instruments industry distribution chart, Aroa Biosurgery ranks #49 out of 805 companies for Gross Margin %. This places Aroa Biosurgery in the top 6% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 52.07. Aroa Biosurgery's value of 85.77% is 64.7% above this benchmark. Historically, Aroa Biosurgery's own Gross Margin % has ranged from 69.48 to 85.73 over the past decade. While the company's 10-year median is 84.90 vs. the industry median of 52.07, Aroa Biosurgery 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 Medical Devices & Instruments company?
The median Gross Margin % among Medical Devices & Instruments companies is 52.07, based on 805 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. Aroa Biosurgery's current Gross Margin % of 85.77% is 64.7% 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 Aroa Biosurgery and its competitors. For the Medical Devices & Instruments industry, the median Gross Margin % is 52.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aroa Biosurgery's current Gross Margin % is 85.77%, which is near median its own 10-year median of 84.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aroa Biosurgery stock overvalued right now?
Based on GuruFocus' analysis, Aroa Biosurgery (ASX:ARX) is currently considered Modestly Undervalued. The stock's GF Value™ is A$0.80, compared to a current price of A$0.59 — trading 26.3% below its estimated fair value. The current Gross Margin % is 85.77%, which is near median its 10-year median of 84.90 and 64.7% above the Medical Devices & Instruments industry median of 52.07. Aroa Biosurgery's overall GF Score™ is 62/100 with 2 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 Aroa Biosurgery (ASX:ARX), the current Gross Margin % is 85.77% 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 Aroa Biosurgery (ASX:ARX) Overvalued in 2026?
Based on GuruFocus' analysis, Aroa Biosurgery stock appears to be undervalued.
The current stock price of A$0.59 is trading 26.3% below its estimated GF Value™ of A$0.80.
GuruFocus considers Aroa Biosurgery to be Modestly Undervalued.
Key valuation signals for ASX:ARX:
Gross Margin %: 85.77% (near median its 10-year median of 84.90)
GF Value™: A$0.80 vs. price of A$0.59 (26.3% below fair value)
Industry Position: 64.7% above the Medical Devices & Instruments median (#49 of 805)
No single metric tells the full story. See the ASX:ARX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aroa Biosurgery Ltd is a soft tissue regeneration company that develops, manufactures, and sells medical devices for wound and soft tissue repair using its proprietary extracellular matrix (ECM) technology. It is focused on improving the rate and quality of healing in complex wounds and soft tissue reconstruction. The company is in the business of developing, manufacturing, and selling soft tissue repair products. The company's principal market is the United States, where it has five key products for sale targeting chronic wounds, hernia, plastics, reconstructive surgery, and trauma/limb salvage/tumor surgery.
62GF Score
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