Padtec HoldingBSP:PDTC3 +3.52%66 Gross Margin % is 39.55% as of Mar. 2026, which is 11% above its 10-year median of 35.61. GuruFocus rates BSP:PDTC3 with a GF Score™ of 66/100 and a GF Value™ of R$1.52 (Fairly Valued). The stock has 6 warning signs investors should review. Among 2,449 Hardware companies, Padtec Holding ranks better than 72.76% on this metric.
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
Padtec Holding had a gross margin of 39.55% for the quarter that ended in Mar. 2026 => Competition eroding margins
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.
Padtec Holding Gross Margin % Related Terms
Padtec Holding Gross Margin % Historical Data
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The historical data trend for Padtec Holding'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.
BSP:PDTC3 vs CSCO, CIEN, MSI: Gross Margin % Comparison
For the Communication Equipment subindustry, Padtec Holding'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.
Padtec Holding Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Padtec Holding's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Padtec Holding'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.
Padtec Holding (BSP:PDTC3) has a Gross Margin % of 39.55% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Padtec Holding and its competitors. This is 11% above median its historical median of 35.61. According to the industry distribution chart, Padtec Holding ranks #667 out of 2449 companies in the Hardware industry, placing it in the top 27.2%.
Is Padtec Holding's Gross Margin % too high?
Padtec Holding's current Gross Margin % of 39.55% is 11% above median its 10-year median of 35.61. The Hardware industry median Gross Margin % is 24.50. Padtec Holding's value of 39.55% is 61.4% above this industry median. Based on the distribution chart, Padtec Holding ranks #667 out of 2449 companies in the Hardware industry, which is above the industry midpoint. Overall, Padtec Holding has a GF Score™ of 66/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Padtec Holding's Gross Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Padtec Holding ranks #667 out of 2449 companies for Gross Margin %. This puts Padtec Holding in the upper half of its industry. The industry median Gross Margin % is 24.50. Padtec Holding's value of 39.55% is 61.4% above this benchmark. While the company's 10-year median is 35.61 vs. the industry median of 24.50, Padtec Holding 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 Hardware company?
The median Gross Margin % among Hardware companies is 24.50, based on 2,449 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. Padtec Holding's current Gross Margin % of 39.55% is 61.4% 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 Padtec Holding and its competitors. For the Hardware industry, the median Gross Margin % is 24.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Padtec Holding's current Gross Margin % is 39.55%, which is 11% above median its own 10-year median of 35.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Padtec Holding stock overvalued right now?
Based on GuruFocus' analysis, Padtec Holding (BSP:PDTC3) is currently considered Fairly Valued. The stock's GF Value™ is R$1.52, compared to a current price of R$1.47 — trading 3.3% below its estimated fair value. The current Gross Margin % is 39.55%, which is 11% above median its 10-year median of 35.61 and 61.4% above the Hardware industry median of 24.50. Padtec Holding's overall GF Score™ is 66/100 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 Padtec Holding (BSP:PDTC3), the current Gross Margin % is 39.55% 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 Padtec Holding (BSP:PDTC3) Overvalued in 2026?
Based on GuruFocus' analysis, Padtec Holding stock appears to be undervalued.
The current stock price of R$1.47 is trading 3.3% below its estimated GF Value™ of R$1.52.
GuruFocus considers Padtec Holding to be Fairly Valued.
Key valuation signals for BSP:PDTC3:
Gross Margin %: 39.55% (11% above median its 10-year median of 35.61)
GF Value™: R$1.52 vs. price of R$1.47 (3.3% below fair value)
Industry Position: 61.4% above the Hardware median (#667 of 2449)
No single metric tells the full story. See the BSP:PDTC3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Padtec Holding SA offers optical transmission solutions, based on DWDM technology. Its solutions and platform include Network backbones, Metropolitan Networks, SAN Extension, and DCI, MultiPad MPD-1200, LightPad i6400G, and others. The company provides its services to Government, Financial, Utilities and Integrator, IT and Multimedia, and others.
66GF Score
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