Creative TechnologyCREAF 28 Gross Margin % is 29.79% as of Dec. 2025, which is 6% above its 10-year median of 28.03. GuruFocus rates CREAF with a GF Score™ of 28/100 and a GF Value™ of $0.98 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 2,450 Hardware companies, Creative Technology ranks better than 58.57% 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
Creative Technology had a gross margin of 29.79% for the quarter that ended in Dec. 2025 => 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.
Creative Technology Gross Margin % Related Terms
Creative Technology Gross Margin % Historical Data
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The historical data trend for Creative Technology'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.
CREAF vs DELL, SNDK, ANET: Gross Margin % Comparison
For the Computer Hardware subindustry, Creative Technology'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.
Creative Technology Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Creative Technology's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Creative Technology'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.
Creative Technology (CREAF) has a Gross Margin % of 29.79% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Creative Technology and its competitors. This is near median its historical median of 28.03. Over the past decade, Creative Technology's Gross Margin % has ranged from 24.76 to 33.25. According to the industry distribution chart, Creative Technology ranks #1015 out of 2450 companies in the Hardware industry, placing it in the top 41.4%.
Is Creative Technology's Gross Margin % too high?
Creative Technology's current Gross Margin % of 29.79% is near median its 10-year median of 28.03. Over the past 10 years, this metric has ranged from a low of 24.76 to a high of 33.25. The Hardware industry median Gross Margin % is 24.53. Creative Technology's value of 29.79% is 21.4% above this industry median. Based on the distribution chart, Creative Technology ranks #1015 out of 2450 companies in the Hardware industry, which is above the industry midpoint. Overall, Creative Technology has a GF Score™ of 28/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Creative Technology's Gross Margin % compare to DELL and SNDK?
According to the Hardware industry distribution chart, Creative Technology ranks #1015 out of 2450 companies for Gross Margin %. This puts Creative Technology in the upper half of its industry. The industry median Gross Margin % is 24.53. Creative Technology's value of 29.79% is 21.4% above this benchmark. Historically, Creative Technology's own Gross Margin % has ranged from 24.76 to 33.25 over the past decade. While the company's 10-year median is 28.03 vs. the industry median of 24.53, Creative Technology 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 24.53, 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. Creative Technology's current Gross Margin % of 29.79% is 21.4% 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 Creative Technology 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. Creative Technology's current Gross Margin % is 29.79%, which is near median its own 10-year median of 28.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Creative Technology stock overvalued right now?
Based on GuruFocus' analysis, Creative Technology (CREAF) is currently considered Possible Value Trap. The stock's GF Value™ is $0.98, compared to a current price of $0.69 — trading 30% below its estimated fair value. The current Gross Margin % is 29.79%, which is near median its 10-year median of 28.03 and 21.4% above the Hardware industry median of 24.53. Creative Technology's overall GF Score™ is 28/100 with 3 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 Creative Technology (CREAF), the current Gross Margin % is 29.79% 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 Creative Technology (CREAF) Overvalued in 2026?
Based on GuruFocus' analysis, Creative Technology stock appears to be undervalued.
The current stock price of $0.69 is trading 30% below its estimated GF Value™ of $0.98.
GuruFocus considers Creative Technology to be Possible Value Trap.
Key valuation signals for CREAF:
Gross Margin %: 29.79% (near median its 10-year median of 28.03)
GF Value™: $0.98 vs. price of $0.69 (30% below fair value)
Industry Position: 21.4% above the Hardware median (#1015 of 2450)
No single metric tells the full story. See the CREAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Creative Technology Ltd is a digital entertainment company specializing in the design, manufacturing, and distribution of multimedia products. The company's portfolio includes digitized sound and video boards, computers, and personal digital entertainment devices. Their product range features technologies such as Super X-Fi and Sound Blaster, encompassing internal sound cards, external USB DACs and amplifiers, gaming headsets, computer speakers, Bluetooth speakers, headphones, and various accessories. It also offers comprehensive work solutions, including webcams, USB dongles, communication devices, and high-resolution DACs. The company operates across Singapore, the United States of America, Asia Pacific, Ireland, and Europe, with Europe contributing the majority of its revenue.
28GF Score
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