DroneshieldASX:DRO -5.39%82 Gross Margin % is 58.62% as of Dec. 2025, which is 6% below its 10-year median of 62.27. GuruFocus rates ASX:DRO with a GF Score™ of 82/100 and a GF Value™ of A$2.40 (Fairly Valued). The stock has 2 warning signs investors should review. Among 342 Aerospace & Defense companies, Droneshield ranks better than 88.89% on this metric.
The historical rank and industry rank for Droneshield's Gross Margin % or its related term are showing as below:
ASX:DRO'
s Gross Margin % Range Over the Past 10 Years
Min: 20.24 Med: 62.27 Max: 72.78
Current: 60.88
During the past 10 years, the highestGross Margin % of Droneshield was 72.78%. The lowest was 20.24%. And the median was 62.27%.
ASX:DRO's Gross Margin % is ranked better than 88.89% of 342
companies
in the Aerospace & Defense industry
Industry Median: 26.65
vs ASX:DRO: 60.88
Droneshield had a gross margin of 58.62% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Droneshield was -0.70% per year.
Droneshield (ASX:DRO) 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
Droneshield had a gross margin of 58.62% for the quarter that ended in Dec. 2025 => 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.
Droneshield Gross Margin % Related Terms
Droneshield Gross Margin % Historical Data
* Premium members only.
The historical data trend for Droneshield'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 Aerospace & Defense subindustry, Droneshield'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.
Droneshield Gross Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Droneshield's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Droneshield'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.
Droneshield (ASX:DRO) has a Gross Margin % of 58.62% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Droneshield and its competitors. This is near median its historical median of 62.27. Over the past decade, Droneshield's Gross Margin % has ranged from 20.24 to 72.78. According to the industry distribution chart, Droneshield ranks #38 out of 342 companies in the Aerospace & Defense industry, placing it in the top 11.1%.
Is Droneshield's Gross Margin % too high?
Droneshield's current Gross Margin % of 58.62% is near median its 10-year median of 62.27. Over the past 10 years, this metric has ranged from a low of 20.24 to a high of 72.78. The Aerospace & Defense industry median Gross Margin % is 26.65. Droneshield's value of 58.62% is 120% above this industry median. Based on the distribution chart, Droneshield ranks #38 out of 342 companies in the Aerospace & Defense industry, which is in the top quartile — a strong position relative to peers. Overall, Droneshield has a GF Score™ of 82/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Droneshield's Gross Margin % compare to GE and RTX?
According to the Aerospace & Defense industry distribution chart, Droneshield ranks #38 out of 342 companies for Gross Margin %. This places Droneshield in the top 11% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 26.65. Droneshield's value of 58.62% is 120% above this benchmark. Historically, Droneshield's own Gross Margin % has ranged from 20.24 to 72.78 over the past decade. While the company's 10-year median is 62.27 vs. the industry median of 26.65, Droneshield 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 an Aerospace & Defense company?
The median Gross Margin % among Aerospace & Defense companies is 26.65, based on 342 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. Droneshield's current Gross Margin % of 58.62% is 120% 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 Droneshield and its competitors. For the Aerospace & Defense industry, the median Gross Margin % is 26.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Droneshield's current Gross Margin % is 58.62%, which is near median its own 10-year median of 62.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Droneshield stock overvalued right now?
Based on GuruFocus' analysis, Droneshield (ASX:DRO) is currently considered Fairly Valued. The stock's GF Value™ is A$2.40, compared to a current price of A$2.28 — trading 5% below its estimated fair value. The current Gross Margin % is 58.62%, which is near median its 10-year median of 62.27 and 120% above the Aerospace & Defense industry median of 26.65. Droneshield's overall GF Score™ is 82/100 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 Droneshield (ASX:DRO), the current Gross Margin % is 58.62% as of Dec. 2025. 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 Droneshield (ASX:DRO) Overvalued in 2026?
Based on GuruFocus' analysis, Droneshield stock appears to be undervalued.
The current stock price of A$2.28 is trading 5% below its estimated GF Value™ of A$2.40.
GuruFocus considers Droneshield to be Fairly Valued.
Key valuation signals for ASX:DRO:
Gross Margin %: 58.62% (near median its 10-year median of 62.27)
GF Value™: A$2.40 vs. price of A$2.28 (5% below fair value)
Industry Position: 120% above the Aerospace & Defense median (#38 of 342)
No single metric tells the full story. See the ASX:DRO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Droneshield Ltd develops and sells hardware and software for drone detection and security. The principal activity of the company is the development, commercialization, and sales of hardware and software technology for drone detection and security. It has four products: Dismounted, which include RfPatrol Mk2, DroneGun Mk4, Immediate Response Kit (IRK), DroneGun Tactical; On-The-Move includes DroneSentry-X Mk2, Expeditionary Fixed Site (EFS) Kit; Fixed Site includes DroneSentry; and Software includes DroneSentry-C2, Tactical DroneSentry-C2, and DroneOptID. The company provides its solutions to the intelligence community, Government, law enforcement, critical infrastructure, and airports globally. Its geographical segments are the United States, Australia and the rest of World.
82GF Score
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