The historical rank and industry rank for BAE Systems's Gross Margin % or its related term are showing as below:
BAESY'
s Gross Margin % Range Over the Past 10 Years
Min: 59.77 Med: 65.1 Max: 66.63
Current: 65.2
During the past 13 years, the highestGross Margin % of BAE Systems was 66.63%. The lowest was 59.77%. And the median was 65.10%.
BAESY's Gross Margin % is ranked better than 91.23% of 342
companies
in the Aerospace & Defense industry
Industry Median: 26.65
vs BAESY: 65.20
BAE Systems had a gross margin of N/A% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for BAE Systems was 0.20% per year.
BAE Systems (OTCPK:BAESY) 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
BAE Systems had a gross margin of N/A% for the quarter that ended in Dec. 2025 => No sustainable 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.
BAE Systems Gross Margin % Related Terms
BAE Systems Gross Margin % Historical Data
* Premium members only.
The historical data trend for BAE Systems'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, BAE Systems'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.
BAE Systems Gross Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, BAE Systems's Gross Margin % distribution charts can be found below:
* The bar in red indicates where BAE Systems'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.
BAE Systems (BAESY) has a Gross Margin % of 0.00% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on BAE Systems and its competitors. Over the past decade, BAE Systems' Gross Margin % has ranged from 59.77 to 66.63. According to the industry distribution chart, BAE Systems ranks #30 out of 342 companies in the Aerospace & Defense industry, placing it in the top 8.8%.
Is BAE Systems' Gross Margin % too high?
BAE Systems' current Gross Margin % is 0.00%. Over the past 10 years, this metric has ranged from a low of 59.77 to a high of 66.63. Based on the distribution chart, BAE Systems ranks #30 out of 342 companies in the Aerospace & Defense industry, which is in the top quartile — a strong position relative to peers. Overall, BAE Systems has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does BAE Systems' Gross Margin % compare to GE and RTX?
According to the Aerospace & Defense industry distribution chart, BAE Systems ranks #30 out of 342 companies for Gross Margin %. This places BAE Systems in the top 9% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 26.65. Historically, BAE Systems' own Gross Margin % has ranged from 59.77 to 66.63 over the past decade. 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. 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 BAE Systems 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. BAE Systems's current Gross Margin % is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is BAE Systems stock overvalued right now?
Based on GuruFocus' analysis, BAE Systems (BAESY) is currently considered Fairly Valued. The stock's GF Value™ is $88.08, compared to a current price of $95.60 — trading 8.5% above its estimated fair value. The current Gross Margin % is 0.00%. BAE Systems' overall GF Score™ is 86/100 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 BAE Systems (BAESY), the current Gross Margin % is 0.00% 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 BAE Systems (BAESY) Overvalued in 2026?
Based on GuruFocus' analysis, BAE Systems stock appears to be overvalued.
The current stock price of $95.60 is trading 8.5% above its estimated GF Value™ of $88.08.
GuruFocus considers BAE Systems to be Fairly Valued.
Key valuation signals for BAESY:
Gross Margin %: 0.00%
GF Value™: $88.08 vs. price of $95.60 (8.5% above fair value)
No single metric tells the full story. See the BAESY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
BAE Systems is a British global defense, security, and aerospace company and the largest defense contractor in Europe; it is one of six prime contractors to the US Department of Defense. For reporting purposes, the company has five operating segments: electronics systems is the group's US- and UK-based electronic warfare systems; the cyber, security, and intelligence segment supplies intelligence and security solutions to the US government; platforms and services manufactures combat vehicles and munitions and performs ship repair services to the US Defense Department; the air segment includes BAE's share of US and European air programs as well as its businesses in Saudi Arabia and Australia, and the maritime segment comprises UK land- and marine-based activities.
86GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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