AVITA MedicalASX:AVH -2.25%57 Gross Margin % is 81.70% as of Mar. 2026, which is 3% above its 10-year median of 79.41. GuruFocus rates ASX:AVH with a GF Score™ of 57/100 and a GF Value™ of A$3.05 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 805 Medical Devices & Instruments companies, AVITA Medical ranks better than 92.42% on this metric.
The historical rank and industry rank for AVITA Medical's Gross Margin % or its related term are showing as below:
ASX:AVH'
s Gross Margin % Range Over the Past 10 Years
Min: 41.23 Med: 79.41 Max: 85.85
Current: 81.36
During the past 13 years, the highestGross Margin % of AVITA Medical was 85.85%. The lowest was 41.23%. And the median was 79.41%.
ASX:AVH's Gross Margin % is ranked better than 92.42% of 805
companies
in the Medical Devices & Instruments industry
Industry Median: 52.07
vs ASX:AVH: 81.36
AVITA Medical had a gross margin of 81.70% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for AVITA Medical was 1.30% per year.
AVITA Medical (ASX:AVH) 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
AVITA Medical had a gross margin of 81.70% 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.
AVITA Medical Gross Margin % Related Terms
AVITA Medical Gross Margin % Historical Data
* Premium members only.
The historical data trend for AVITA Medical'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:AVH vs NNOX, MXCT, SNWV: Gross Margin % Comparison
For the Medical Devices subindustry, AVITA Medical'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.
AVITA Medical Gross Margin % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, AVITA Medical's Gross Margin % distribution charts can be found below:
* The bar in red indicates where AVITA Medical'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.
AVITA Medical (ASX:AVH) has a Gross Margin % of 81.70% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on AVITA Medical and its competitors. This is near median its historical median of 79.41. Over the past decade, AVITA Medical's Gross Margin % has ranged from 41.23 to 85.85. According to the industry distribution chart, AVITA Medical ranks #61 out of 805 companies in the Medical Devices & Instruments industry, placing it in the top 7.6%.
Is AVITA Medical's Gross Margin % too high?
AVITA Medical's current Gross Margin % of 81.70% is near median its 10-year median of 79.41. Over the past 10 years, this metric has ranged from a low of 41.23 to a high of 85.85. The Medical Devices & Instruments industry median Gross Margin % is 52.07. AVITA Medical's value of 81.70% is 56.9% above this industry median. Based on the distribution chart, AVITA Medical ranks #61 out of 805 companies in the Medical Devices & Instruments industry, which is in the top quartile — a strong position relative to peers. Overall, AVITA Medical has a GF Score™ of 57/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does AVITA Medical's Gross Margin % compare to NNOX and MXCT?
According to the Medical Devices & Instruments industry distribution chart, AVITA Medical ranks #61 out of 805 companies for Gross Margin %. This places AVITA Medical in the top 8% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 52.07. AVITA Medical's value of 81.70% is 56.9% above this benchmark. Historically, AVITA Medical's own Gross Margin % has ranged from 41.23 to 85.85 over the past decade. While the company's 10-year median is 79.41 vs. the industry median of 52.07, AVITA Medical 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. AVITA Medical's current Gross Margin % of 81.70% is 56.9% 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 AVITA Medical 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. AVITA Medical's current Gross Margin % is 81.70%, which is near median its own 10-year median of 79.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AVITA Medical stock overvalued right now?
Based on GuruFocus' analysis, AVITA Medical (ASX:AVH) is currently considered Possible Value Trap. The stock's GF Value™ is A$3.05, compared to a current price of A$1.09 — trading 64.4% below its estimated fair value. The current Gross Margin % is 81.70%, which is near median its 10-year median of 79.41 and 56.9% above the Medical Devices & Instruments industry median of 52.07. AVITA Medical's overall GF Score™ is 57/100 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 AVITA Medical (ASX:AVH), the current Gross Margin % is 81.70% 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 AVITA Medical (ASX:AVH) Overvalued in 2026?
Based on GuruFocus' analysis, AVITA Medical stock appears to be undervalued.
The current stock price of A$1.09 is trading 64.4% below its estimated GF Value™ of A$3.05.
GuruFocus considers AVITA Medical to be Possible Value Trap.
Key valuation signals for ASX:AVH:
Gross Margin %: 81.70% (near median its 10-year median of 79.41)
GF Value™: A$3.05 vs. price of A$1.09 (64.4% below fair value)
Industry Position: 56.9% above the Medical Devices & Instruments median (#61 of 805)
No single metric tells the full story. See the ASX:AVH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Avita is largely a single product company. Its RECELL system is an innovative burn treatment device which creates Spray-on Skin from a small skin sample within 30 minutes, thus avoiding or reducing the need for skin grafts. It's approved for the treatment of adult and paediatric patients in the US and an expanded indication for soft-tissue reconstruction. It is currently used in most of the 140 US burn centers. Despite having product approval in Australia, Canada, and China, Avita is not actively marketing in those territories and focussing instead on the US region, although international sales, particularly in Japan, are growing. Avita is domiciled, and has its primary listing, in the US.
57GF Score
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