Dragonfly Energy HoldingsDFLI +6.04%55 Gross Margin % is 17.62% as of Mar. 2026, which is 35% below its 10-year median of 27.04. GuruFocus rates DFLI with a GF Score™ of 55/100 and a GF Value™ of $4.98 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 2,998 Industrial Products companies, Dragonfly Energy Holdings ranks worse than 55.87% on this metric.
Dragonfly Energy Holdings (NAS:DFLI) 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
Dragonfly Energy Holdings had a gross margin of 17.62% 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.
Dragonfly Energy Holdings Gross Margin % Related Terms
Dragonfly Energy Holdings Gross Margin % Historical Data
* 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.
DFLI vs EPOW, GWH, SDST: Gross Margin % Comparison
For the Electrical Equipment & Parts subindustry, Dragonfly Energy Holdings'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.
Dragonfly Energy Holdings Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Dragonfly Energy Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Dragonfly Energy Holdings'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.
Dragonfly Energy Holdings (DFLI) has a Gross Margin % of 17.62% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Dragonfly Energy Holdings and its competitors. This is 35% below median its historical median of 27.04. Over the past decade, Dragonfly Energy Holdings' Gross Margin % has ranged from 22.96 to 43.67. According to the industry distribution chart, Dragonfly Energy Holdings ranks #1675 out of 2998 companies in the Industrial Products industry, placing it in the top 55.9%.
Is Dragonfly Energy Holdings' Gross Margin % too high?
Dragonfly Energy Holdings' current Gross Margin % of 17.62% is 35% below median its 10-year median of 27.04. Over the past 10 years, this metric has ranged from a low of 22.96 to a high of 43.67. The Industrial Products industry median Gross Margin % is 26.82. Dragonfly Energy Holdings' value of 17.62% is 34.3% below this industry median. Based on the distribution chart, Dragonfly Energy Holdings ranks #1675 out of 2998 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Dragonfly Energy Holdings has a GF Score™ of 55/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Dragonfly Energy Holdings' Gross Margin % compare to EPOW and GWH?
According to the Industrial Products industry distribution chart, Dragonfly Energy Holdings ranks #1675 out of 2998 companies for Gross Margin %. This places Dragonfly Energy Holdings in the lower half of its industry. The industry median Gross Margin % is 26.82. Dragonfly Energy Holdings' value of 17.62% is 34.3% below this benchmark. Historically, Dragonfly Energy Holdings' own Gross Margin % has ranged from 22.96 to 43.67 over the past decade. While the company's 10-year median is 27.04 vs. the industry median of 26.82, Dragonfly Energy Holdings 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.82, based on 2,998 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. Dragonfly Energy Holdings's current Gross Margin % of 17.62% is 34.3% 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 Dragonfly Energy Holdings and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dragonfly Energy Holdings's current Gross Margin % is 17.62%, which is 35% below median its own 10-year median of 27.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dragonfly Energy Holdings stock overvalued right now?
Based on GuruFocus' analysis, Dragonfly Energy Holdings (DFLI) is currently considered Possible Value Trap. The stock's GF Value™ is $4.98, compared to a current price of $1.94 — trading 61.1% below its estimated fair value. The current Gross Margin % is 17.62%, which is 35% below median its 10-year median of 27.04 and 34.3% below the Industrial Products industry median of 26.82. Dragonfly Energy Holdings' overall GF Score™ is 55/100 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 Dragonfly Energy Holdings (DFLI), the current Gross Margin % is 17.62% 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 Dragonfly Energy Holdings (DFLI) Overvalued in 2026?
Based on GuruFocus' analysis, Dragonfly Energy Holdings stock appears to be undervalued.
The current stock price of $1.94 is trading 61.1% below its estimated GF Value™ of $4.98.
GuruFocus considers Dragonfly Energy Holdings to be Possible Value Trap.
Key valuation signals for DFLI:
Gross Margin %: 17.62% (35% below median its 10-year median of 27.04)
GF Value™: $4.98 vs. price of $1.94 (61.1% below fair value)
Industry Position: 34.3% below the Industrial Products median (#1675 of 2998)
No single metric tells the full story. See the DFLI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dragonfly Energy Holdings Corp is engaged in the design, assembly, and sale of lithium-ion batteries, mainly lithium iron phosphate (LFP) batteries, for applications in recreational vehicles, marine, industrial, and other markets. The company operates through two segments: direct-to-consumer (DTC), which sells Battle Born branded batteries, and OEM, which supplies Dragonfly branded batteries to original equipment manufacturers.
55GF Score
Get the complete analysis for DFLI
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
DFLI has been successfully added to your 
