Note ABCHIX:NOTES 96 Gross Margin % is 13.41% as of Mar. 2026, which is 9% above its 10-year median of 12.28. GuruFocus rates CHIX:NOTES with a GF Score™ of 96/100 and a GF Value™ of kr177.19. The stock has 4 warning signs investors should review. Among 2,450 Hardware companies, Note AB ranks worse than 76.16% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Note AB's Gross Profit for the
three
months ended in Mar. 2026 was kr129 Mil. Note AB's Revenue for the
three
months ended in Mar. 2026 was kr962 Mil. Therefore, Note AB's Gross Margin % for the quarter that ended in Mar. 2026 was 13.41%.
The historical rank and industry rank for Note AB's Gross Margin % or its related term are showing as below:
CHIX:NOTEs'
s Gross Margin % Range Over the Past 10 Years
Min: 11.73 Med: 12.28 Max: 13.92
Current: 13.92
During the past 13 years, the highestGross Margin % of Note AB was 13.92%. The lowest was 11.73%. And the median was 12.28%.
CHIX:NOTEs's Gross Margin % is ranked worse than 76.16% of 2450
companies
in the Hardware industry
Industry Median: 24.53
vs CHIX:NOTEs: 13.92
Note AB had a gross margin of 13.41% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Note AB was 1.90% per year.
Note AB (CHIX:NOTEs) 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
Note AB had a gross margin of 13.41% for the quarter that ended in Mar. 2026 => 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.
Note AB Gross Margin % Related Terms
Note AB Gross Margin % Historical Data
* Premium members only.
The historical data trend for Note AB'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.
CHIX:NOTES vs APH, GLW, TEL: Gross Margin % Comparison
For the Electronic Components subindustry, Note AB'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.
Note AB Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Note AB's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Note AB'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.
Note AB (CHIX:NOTES) has a Gross Margin % of 13.41% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Note AB and its competitors. This is near median its historical median of 12.28. Over the past decade, Note AB's Gross Margin % has ranged from 11.73 to 13.92. According to the industry distribution chart, Note AB ranks #1866 out of 2450 companies in the Hardware industry, placing it in the top 76.2%.
Is Note AB's Gross Margin % too high?
Note AB's current Gross Margin % of 13.41% is near median its 10-year median of 12.28. Over the past 10 years, this metric has ranged from a low of 11.73 to a high of 13.92. The Hardware industry median Gross Margin % is 24.53. Note AB's value of 13.41% is 45.3% below this industry median. Based on the distribution chart, Note AB ranks #1866 out of 2450 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Note AB has a GF Score™ of 96/100, reflecting its overall financial health beyond just this single metric.
How does Note AB's Gross Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Note AB ranks #1866 out of 2450 companies for Gross Margin %. This places Note AB in the lower half of its industry. The industry median Gross Margin % is 24.53. Note AB's value of 13.41% is 45.3% below this benchmark. Historically, Note AB's own Gross Margin % has ranged from 11.73 to 13.92 over the past decade. While the company's 10-year median is 12.28 vs. the industry median of 24.53, Note AB has consistently been below 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 24.53, based on 2,450 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. Note AB's current Gross Margin % of 13.41% is 45.3% below 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 Note AB and its competitors. For the Hardware industry, the median Gross Margin % is 24.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Note AB's current Gross Margin % is 13.41%, which is near median its own 10-year median of 12.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Note AB stock overvalued right now?
Note AB (CHIX:NOTES) has a current Gross Margin % of 13.41%. The stock's GF Value™ is kr177.19, compared to a current price of kr175.20 — trading 1.1% below its estimated fair value. The current Gross Margin % is 13.41%, which is near median its 10-year median of 12.28 and 45.3% below the Hardware industry median of 24.53. Note AB's overall GF Score™ is 96/100 with 4 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 Note AB (CHIX:NOTES), the current Gross Margin % is 13.41% 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 Note AB (CHIX:NOTES) Overvalued in 2026?
Based on GuruFocus' analysis, Note AB stock appears to be undervalued.
The current stock price of kr175.20 is trading 1.1% below its estimated GF Value™ of kr177.19.
Key valuation signals for CHIX:NOTES:
Gross Margin %: 13.41% (near median its 10-year median of 12.28)
GF Value™: kr177.19 vs. price of kr175.20 (1.1% below fair value)
Industry Position: 45.3% below the Hardware median (#1866 of 2450)
No single metric tells the full story. See the CHIX:NOTES stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Note AB is a Swedish based EMS partner. engaged in manufacturing electronics-based products that require high technology competence and flexibility. Its business has four segments which are Industrial, Communication, Medtech and Greentech.
96GF Score
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