EAF's Gross Margin % is ranked worse than 97.9% of 3003
companies
in the Industrial Products industry
Industry Median: 26.79
vs EAF: -5.60
GrafTech International had a gross margin of -11.98% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for GrafTech International was 0.00% per year.
GrafTech International (NYSE:EAF) 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
GrafTech International had a gross margin of -11.98% 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.
GrafTech International Gross Margin % Related Terms
GrafTech International Gross Margin % Historical Data
* Premium members only.
The historical data trend for GrafTech International'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 Electrical Equipment & Parts subindustry, GrafTech International'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.
GrafTech International Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, GrafTech International's Gross Margin % distribution charts can be found below:
* The bar in red indicates where GrafTech International'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.
GrafTech International (EAF) has a Gross Margin % of -11.98% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on GrafTech International and its competitors. According to the industry distribution chart, GrafTech International ranks #2940 out of 3003 companies in the Industrial Products industry, placing it in the top 97.9%.
Is GrafTech International's Gross Margin % too high?
GrafTech International's current Gross Margin % is -11.98%. Based on the distribution chart, GrafTech International ranks #2940 out of 3003 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, GrafTech International has a GF Score™ of 53/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does GrafTech International's Gross Margin % compare to RFIL and TGEN?
According to the Industrial Products industry distribution chart, GrafTech International ranks #2940 out of 3003 companies for Gross Margin %. This places GrafTech International in the lower half of its industry. The industry median Gross Margin % is 26.79. 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 26.79, based on 3,003 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. 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 GrafTech International and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. GrafTech International's current Gross Margin % is -11.98%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GrafTech International stock overvalued right now?
Based on GuruFocus' analysis, GrafTech International (EAF) is currently considered Possible Value Trap. The stock's GF Value™ is $13.35, compared to a current price of $7.05 — trading 47.2% below its estimated fair value. The current Gross Margin % is -11.98%. GrafTech International's overall GF Score™ is 53/100 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 GrafTech International (EAF), the current Gross Margin % is -11.98% 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 GrafTech International (EAF) Overvalued in 2026?
Based on GuruFocus' analysis, GrafTech International stock appears to be undervalued.
The current stock price of $7.05 is trading 47.2% below its estimated GF Value™ of $13.35.
GuruFocus considers GrafTech International to be Possible Value Trap.
Key valuation signals for EAF:
Gross Margin %: -11.98%
GF Value™: $13.35 vs. price of $7.05 (47.2% below fair value)
No single metric tells the full story. See the EAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
GrafTech International Ltd is a manufacturer of high-quality graphite electrode products essential to the production of EAF steel and other ferrous and non-ferrous metals. The company has only reportable segment, Industrial Materials, is comprised of its two product categories: graphite electrodes and petroleum needle coke products used as raw material in the production of graphite electrodes.
53GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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