Electro Optic Systems HldgsASX:EOS 63 Gross Margin % is 57.01% as of Dec. 2025, which is 20% above its 10-year median of 47.70. GuruFocus rates ASX:EOS with a GF Score™ of 63/100 and a GF Value™ of A$1.18 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 342 Aerospace & Defense companies, Electro Optic Systems Hldgs ranks better than 90.35% on this metric.
Electro Optic Systems Hldgs (ASX:EOS) 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
Electro Optic Systems Hldgs had a gross margin of 57.01% 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.
Electro Optic Systems Hldgs Gross Margin % Related Terms
Electro Optic Systems Hldgs 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.
For the Aerospace & Defense subindustry, Electro Optic Systems Hldgs'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.
Electro Optic Systems Hldgs Gross Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Electro Optic Systems Hldgs's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Electro Optic Systems Hldgs'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.
Electro Optic Systems Hldgs (ASX:EOS) has a Gross Margin % of 57.01% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Electro Optic Systems Hldgs and its competitors. This is 20% above median its historical median of 47.70. Over the past decade, Electro Optic Systems Hldgs' Gross Margin % has ranged from 33.73 to 63.37. According to the industry distribution chart, Electro Optic Systems Hldgs ranks #33 out of 342 companies in the Aerospace & Defense industry, placing it in the top 9.6%.
Is Electro Optic Systems Hldgs' Gross Margin % too high?
Electro Optic Systems Hldgs' current Gross Margin % of 57.01% is 20% above median its 10-year median of 47.70. Over the past 10 years, this metric has ranged from a low of 33.73 to a high of 63.37. The Aerospace & Defense industry median Gross Margin % is 26.65. Electro Optic Systems Hldgs' value of 57.01% is 113.9% above this industry median. Based on the distribution chart, Electro Optic Systems Hldgs ranks #33 out of 342 companies in the Aerospace & Defense industry, which is in the top quartile — a strong position relative to peers. Overall, Electro Optic Systems Hldgs has a GF Score™ of 63/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Electro Optic Systems Hldgs' Gross Margin % compare to GE and RTX?
According to the Aerospace & Defense industry distribution chart, Electro Optic Systems Hldgs ranks #33 out of 342 companies for Gross Margin %. This places Electro Optic Systems Hldgs in the top 10% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 26.65. Electro Optic Systems Hldgs' value of 57.01% is 113.9% above this benchmark. Historically, Electro Optic Systems Hldgs' own Gross Margin % has ranged from 33.73 to 63.37 over the past decade. While the company's 10-year median is 47.70 vs. the industry median of 26.65, Electro Optic Systems Hldgs 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. Electro Optic Systems Hldgs's current Gross Margin % of 57.01% is 113.9% 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 Electro Optic Systems Hldgs 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. Electro Optic Systems Hldgs's current Gross Margin % is 57.01%, which is 20% above median its own 10-year median of 47.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Electro Optic Systems Hldgs stock overvalued right now?
Based on GuruFocus' analysis, Electro Optic Systems Hldgs (ASX:EOS) is currently considered Significantly Overvalued. The stock's GF Value™ is A$1.18, compared to a current price of A$9.75 — trading 726.3% above its estimated fair value. The current Gross Margin % is 57.01%, which is 20% above median its 10-year median of 47.70 and 113.9% above the Aerospace & Defense industry median of 26.65. Electro Optic Systems Hldgs' overall GF Score™ is 63/100 with 5 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 Electro Optic Systems Hldgs (ASX:EOS), the current Gross Margin % is 57.01% 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 Electro Optic Systems Hldgs (ASX:EOS) Overvalued in 2026?
Based on GuruFocus' analysis, Electro Optic Systems Hldgs stock appears to be overvalued.
The current stock price of A$9.75 is trading 726.3% above its estimated GF Value™ of A$1.18.
GuruFocus considers Electro Optic Systems Hldgs to be Significantly Overvalued.
Key valuation signals for ASX:EOS:
Gross Margin %: 57.01% (20% above median its 10-year median of 47.70)
GF Value™: A$1.18 vs. price of A$9.75 (726.3% above fair value)
Industry Position: 113.9% above the Aerospace & Defense median (#33 of 342)
No single metric tells the full story. See the ASX:EOS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Electro Optic Systems Hldgs Ltd is an Australian technology company. It develops and produces electro-optic technologies for the aerospace market. The group's reportable segments are Defence and Space Systems. It generates maximum revenue from the Defence segment. The Defence segment develops, manufactures, and markets fire control, surveillance, and weapon systems to approved military customers. The Space Systems segment includes a range of ground products available to support the Australian and international space markets. Geographically, it derives a majority of its revenue from Australia.
63GF Score
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