SomnoMedASX:SOM +0.94%50 Gross Margin % is 61.33% as of Dec. 2025, which is 2% above its 10-year median of 59.95. GuruFocus rates ASX:SOM with a GF Score™ of 50/100 and a GF Value™ of A$0.45 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 806 Medical Devices & Instruments companies, SomnoMed ranks better than 62.53% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. SomnoMed's Gross Profit for the
six
months ended in Dec. 2025 was A$37.2 Mil. SomnoMed's Revenue for the
six
months ended in Dec. 2025 was A$60.7 Mil. Therefore, SomnoMed's Gross Margin % for the quarter that ended in Dec. 2025 was 61.33%.
The historical rank and industry rank for SomnoMed's Gross Margin % or its related term are showing as below:
ASX:SOM'
s Gross Margin % Range Over the Past 10 Years
Min: 57.49 Med: 59.95 Max: 62.1
Current: 59.81
During the past 13 years, the highestGross Margin % of SomnoMed was 62.10%. The lowest was 57.49%. And the median was 59.95%.
ASX:SOM's Gross Margin % is ranked better than 62.53% of 806
companies
in the Medical Devices & Instruments industry
Industry Median: 51.985
vs ASX:SOM: 59.81
SomnoMed had a gross margin of 61.33% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for SomnoMed was 0.60% per year.
SomnoMed (ASX:SOM) 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
SomnoMed had a gross margin of 61.33% 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.
SomnoMed Gross Margin % Related Terms
SomnoMed Gross Margin % Historical Data
* Premium members only.
The historical data trend for SomnoMed'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:SOM vs ABT, SYK, MDT: Gross Margin % Comparison
For the Medical Devices subindustry, SomnoMed'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.
SomnoMed Gross Margin % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, SomnoMed's Gross Margin % distribution charts can be found below:
* The bar in red indicates where SomnoMed'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.
SomnoMed (ASX:SOM) has a Gross Margin % of 61.33% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on SomnoMed and its competitors. This is near median its historical median of 59.95. Over the past decade, SomnoMed's Gross Margin % has ranged from 57.49 to 62.10. According to the industry distribution chart, SomnoMed ranks #302 out of 806 companies in the Medical Devices & Instruments industry, placing it in the top 37.5%.
Is SomnoMed's Gross Margin % too high?
SomnoMed's current Gross Margin % of 61.33% is near median its 10-year median of 59.95. Over the past 10 years, this metric has ranged from a low of 57.49 to a high of 62.10. The Medical Devices & Instruments industry median Gross Margin % is 51.99. SomnoMed's value of 61.33% is 18% above this industry median. Based on the distribution chart, SomnoMed ranks #302 out of 806 companies in the Medical Devices & Instruments industry, which is above the industry midpoint. Overall, SomnoMed has a GF Score™ of 50/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SomnoMed's Gross Margin % compare to ABT and SYK?
According to the Medical Devices & Instruments industry distribution chart, SomnoMed ranks #302 out of 806 companies for Gross Margin %. This puts SomnoMed in the upper half of its industry. The industry median Gross Margin % is 51.99. SomnoMed's value of 61.33% is 18% above this benchmark. Historically, SomnoMed's own Gross Margin % has ranged from 57.49 to 62.10 over the past decade. While the company's 10-year median is 59.95 vs. the industry median of 51.99, SomnoMed 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 51.99, based on 806 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. SomnoMed's current Gross Margin % of 61.33% is 18% 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 SomnoMed and its competitors. For the Medical Devices & Instruments industry, the median Gross Margin % is 51.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SomnoMed's current Gross Margin % is 61.33%, which is near median its own 10-year median of 59.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SomnoMed stock overvalued right now?
Based on GuruFocus' analysis, SomnoMed (ASX:SOM) is currently considered Modestly Overvalued. The stock's GF Value™ is A$0.45, compared to a current price of A$0.54 — trading 18.9% above its estimated fair value. The current Gross Margin % is 61.33%, which is near median its 10-year median of 59.95 and 18% above the Medical Devices & Instruments industry median of 51.99. SomnoMed's overall GF Score™ is 50/100 with 3 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 SomnoMed (ASX:SOM), the current Gross Margin % is 61.33% 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 SomnoMed (ASX:SOM) Overvalued in 2026?
Based on GuruFocus' analysis, SomnoMed stock appears to be overvalued.
The current stock price of A$0.54 is trading 18.9% above its estimated GF Value™ of A$0.45.
GuruFocus considers SomnoMed to be Modestly Overvalued.
Key valuation signals for ASX:SOM:
Gross Margin %: 61.33% (near median its 10-year median of 59.95)
GF Value™: A$0.45 vs. price of A$0.54 (18.9% above fair value)
Industry Position: 18% above the Medical Devices & Instruments median (#302 of 806)
No single metric tells the full story. See the ASX:SOM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SomnoMed Ltd provides treatment solutions for sleep-related breathing disorders, including obstructive sleep apnea, snoring, and bruxism. It is engaged in commercializing SomnoDent Mandibular Advancement Splint (MAS) and other oral devices for sleep-related disorders in Australia and overseas. The other products in the company's portfolio include SomMorning Repositioner; SomnoBrux splint, a custom-fit, acrylic splint (dental guard) for upper teeth designed to protect teeth from grinding and scraping during Bruxism; and SomTabs cleaning tablets that have been developed to clean oral appliances. Geographically, the company generates maximum revenue from Europe, followed by North America and the Asia Pacific region.
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