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
ECD Automotive Design had a gross margin of -28.90% for the quarter that ended in Sep. 2025 => 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.
ECD Automotive Design Gross Margin % Related Terms
ECD Automotive Design Gross Margin % Historical Data
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The historical data trend for ECD Automotive Design'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 Auto Manufacturers subindustry, ECD Automotive Design'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.
ECD Automotive Design Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, ECD Automotive Design's Gross Margin % distribution charts can be found below:
* The bar in red indicates where ECD Automotive Design'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.
ECD Automotive Design (ECDA) has a Gross Margin % of -28.90% as of Sep. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on ECD Automotive Design and its competitors. Over the past decade, ECD Automotive Design's Gross Margin % has ranged from 7.27 to 23.40.
Is ECD Automotive Design's Gross Margin % too high?
ECD Automotive Design's current Gross Margin % is -28.90%. Over the past 10 years, this metric has ranged from a low of 7.27 to a high of 23.40.
How does ECD Automotive Design's Gross Margin % compare to BINI and TSLA?
ECD Automotive Design's Gross Margin % of -28.90% can be compared against companies in the Vehicles & Parts industry. The industry median Gross Margin % is 19.84. Historically, ECD Automotive Design's own Gross Margin % has ranged from 7.27 to 23.40 over the past decade. 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 Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.84, based on 1,313 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 ECD Automotive Design and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ECD Automotive Design's current Gross Margin % is -28.90%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ECD Automotive Design stock overvalued right now?
ECD Automotive Design (ECDA) has a current Gross Margin % of -28.90%. The current Gross Margin % is -28.90%. 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 ECD Automotive Design (ECDA), the current Gross Margin % is -28.90% as of Sep. 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.
ECD Automotive Design Inc is a custom-car builder in the Restomod sector with a focus on British classic motor vehicles of various models of both two-door and four-door styles. The company has established a facility geared towards producing the majority customized Land Rovers with the highest quality of parts and the highest quality labor force building each vehicle. ECD restores Land Rovers Defenders, Land Rover Series IIA, the Range Rover Classic and the Jaguar E-Type. It upgrade any engine, including Chevrolet V8's, Land Rover V8's, Cummins diesel engines and new electric drivetrains, performing all the necessary body work, drivetrain selection and installation, every stitch in the interior, paint work, up to placement of the last nut and bolt.
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