LG ElectronicsCHIX:LGLDL 80 Gross Margin % is 25.97% as of Mar. 2026, which is 6% above its 10-year median of 24.48. GuruFocus rates CHIX:LGLDL with a GF Score™ of 80/100 and a GF Value™ of $8.74. The stock has 5 warning signs investors should review. Among 2,454 Hardware companies, LG Electronics ranks worse than 51.96% on this metric.
LG Electronics Inc gross margin has been in long-term decline. The average rate of decline per year is -2.3%.
The historical rank and industry rank for LG Electronics's Gross Margin % or its related term are showing as below:
CHIX:LGLDl'
s Gross Margin % Range Over the Past 10 Years
Min: 23.36 Med: 24.48 Max: 26.71
Current: 23.74
During the past 13 years, the highestGross Margin % of LG Electronics was 26.71%. The lowest was 23.36%. And the median was 24.48%.
CHIX:LGLDl's Gross Margin % is ranked worse than 51.96% of 2454
companies
in the Hardware industry
Industry Median: 24.565
vs CHIX:LGLDl: 23.74
LG Electronics had a gross margin of 25.97% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for LG Electronics was -2.30% per year.
LG Electronics (CHIX:LGLDl) 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
LG Electronics had a gross margin of 25.97% 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.
LG Electronics Gross Margin % Related Terms
LG Electronics Gross Margin % Historical Data
* Premium members only.
The historical data trend for LG Electronics'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 Consumer Electronics subindustry, LG Electronics'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.
LG Electronics Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, LG Electronics's Gross Margin % distribution charts can be found below:
* The bar in red indicates where LG Electronics'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.
LG Electronics (CHIX:LGLDL) has a Gross Margin % of 25.97% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on LG Electronics and its competitors. This is near median its historical median of 24.48. Over the past decade, LG Electronics' Gross Margin % has ranged from 23.36 to 26.71. According to the industry distribution chart, LG Electronics ranks #1275 out of 2454 companies in the Hardware industry, placing it in the top 52%.
Is LG Electronics' Gross Margin % too high?
LG Electronics' current Gross Margin % of 25.97% is near median its 10-year median of 24.48. Over the past 10 years, this metric has ranged from a low of 23.36 to a high of 26.71. The Hardware industry median Gross Margin % is 24.57. LG Electronics' value of 25.97% is 5.7% above this industry median. Based on the distribution chart, LG Electronics ranks #1275 out of 2454 companies in the Hardware industry, which is below the industry midpoint. Overall, LG Electronics has a GF Score™ of 80/100, reflecting its overall financial health beyond just this single metric.
How does LG Electronics' Gross Margin % compare to AAPL?
According to the Hardware industry distribution chart, LG Electronics ranks #1275 out of 2454 companies for Gross Margin %. This places LG Electronics in the lower half of its industry. The industry median Gross Margin % is 24.57. LG Electronics' value of 25.97% is 5.7% above this benchmark. Historically, LG Electronics' own Gross Margin % has ranged from 23.36 to 26.71 over the past decade. While the company's 10-year median is 24.48 vs. the industry median of 24.57, LG Electronics 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 24.57, based on 2,454 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. LG Electronics's current Gross Margin % of 25.97% is 5.7% 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 LG Electronics and its competitors. For the Hardware industry, the median Gross Margin % is 24.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LG Electronics's current Gross Margin % is 25.97%, which is near median its own 10-year median of 24.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LG Electronics stock overvalued right now?
LG Electronics (CHIX:LGLDL) has a current Gross Margin % of 25.97%. The stock's GF Value™ is $8.74, compared to a current price of $15.55 — trading 77.9% above its estimated fair value. The current Gross Margin % is 25.97%, which is near median its 10-year median of 24.48 and 5.7% above the Hardware industry median of 24.57. LG Electronics' overall GF Score™ is 80/100 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 LG Electronics (CHIX:LGLDL), the current Gross Margin % is 25.97% 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 LG Electronics (CHIX:LGLDL) Overvalued in 2026?
Based on GuruFocus' analysis, LG Electronics stock appears to be overvalued.
The current stock price of $15.55 is trading 77.9% above its estimated GF Value™ of $8.74.
Key valuation signals for CHIX:LGLDL:
Gross Margin %: 25.97% (near median its 10-year median of 24.48)
GF Value™: $8.74 vs. price of $15.55 (77.9% above fair value)
Industry Position: 5.7% above the Hardware median (#1275 of 2454)
No single metric tells the full story. See the CHIX:LGLDL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
LG Electronics Inc is a South Korea-based company that produces a broad range of electronic products. The group has six reportable segments: the Home Appliance & Air Solution segment, which includes refrigerators, washing machines, air conditioners and vacuum cleaners; the Home Entertainment segment, which covers TVs, audio devices and related products; the Vehicle Component Solutions segment, which provides automobile parts and modules; the Business Solutions segment, which offers monitors, PCs and information displays; the LG Innotek segment, which supplies camera modules, substrate materials and various motors and sensors; and the All Other segment, which includes equipment manufacturing and other ancillary operations.
80GF Score
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