CPS TechnologiesCPSH +12.25%53 Gross Margin % is 8.64% as of Mar. 2026, which is 43% below its 10-year median of 15.14. GuruFocus rates CPSH with a GF Score™ of 53/100 and a GF Value™ of $2.62 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 2,450 Hardware companies, CPS Technologies ranks worse than 74.82% 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
CPS Technologies had a gross margin of 8.64% 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.
CPS Technologies Gross Margin % Related Terms
CPS Technologies Gross Margin % Historical Data
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The historical data trend for CPS Technologies'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.
CPSH vs KULR, LINK, RELL: Gross Margin % Comparison
For the Electronic Components subindustry, CPS Technologies'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.
CPS Technologies Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, CPS Technologies's Gross Margin % distribution charts can be found below:
* The bar in red indicates where CPS Technologies'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.
CPS Technologies (CPSH) has a Gross Margin % of 8.64% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on CPS Technologies and its competitors. This is 43% below median its historical median of 15.14. According to the industry distribution chart, CPS Technologies ranks #1833 out of 2450 companies in the Hardware industry, placing it in the top 74.8%.
Is CPS Technologies' Gross Margin % too high?
CPS Technologies' current Gross Margin % of 8.64% is 43% below median its 10-year median of 15.14. The Hardware industry median Gross Margin % is 24.53. CPS Technologies' value of 8.64% is 64.8% below this industry median. Based on the distribution chart, CPS Technologies ranks #1833 out of 2450 companies in the Hardware industry, which is below the industry midpoint. Overall, CPS Technologies has a GF Score™ of 53/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does CPS Technologies' Gross Margin % compare to KULR and LINK?
According to the Hardware industry distribution chart, CPS Technologies ranks #1833 out of 2450 companies for Gross Margin %. This places CPS Technologies in the lower half of its industry. The industry median Gross Margin % is 24.53. CPS Technologies' value of 8.64% is 64.8% below this benchmark. While the company's 10-year median is 15.14 vs. the industry median of 24.53, CPS Technologies 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. CPS Technologies's current Gross Margin % of 8.64% is 64.8% 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 CPS Technologies 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. CPS Technologies's current Gross Margin % is 8.64%, which is 43% below median its own 10-year median of 15.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CPS Technologies stock overvalued right now?
Based on GuruFocus' analysis, CPS Technologies (CPSH) is currently considered Significantly Overvalued. The stock's GF Value™ is $2.62, compared to a current price of $5.68 — trading 116.8% above its estimated fair value. The current Gross Margin % is 8.64%, which is 43% below median its 10-year median of 15.14 and 64.8% below the Hardware industry median of 24.53. CPS Technologies' overall GF Score™ is 53/100 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 CPS Technologies (CPSH), the current Gross Margin % is 8.64% 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 CPS Technologies (CPSH) Overvalued in 2026?
Based on GuruFocus' analysis, CPS Technologies stock appears to be overvalued.
The current stock price of $5.68 is trading 116.8% above its estimated GF Value™ of $2.62.
GuruFocus considers CPS Technologies to be Significantly Overvalued.
Key valuation signals for CPSH:
Gross Margin %: 8.64% (43% below median its 10-year median of 15.14)
GF Value™: $2.62 vs. price of $5.68 (116.8% above fair value)
Industry Position: 64.8% below the Hardware median (#1833 of 2450)
No single metric tells the full story. See the CPSH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
CPS Technologies Corp designs, manufactures, and sells high-performance material solutions for customers across various markets, including transportation, energy, automotive, electronics, telecommunications, aerospace, and defense. The company develops and applies proprietary expertise in metal matrix composites (MMCs), which are engineered materials combining metals and ceramics to achieve enhanced performance properties. It also provides baseplates and housings used in radar, satellite and avionics applications. The company provides lids and heat spreaders used with integrated circuits in Internet switches and routers. The majority of the company's revenue is derived from the sale of its products in the United States of America.
53GF Score
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