Electro-SensorsELSE -0.26%62 Gross Margin % is 51.26% as of Mar. 2026, which is 4% below its 10-year median of 53.25. GuruFocus rates ELSE with a GF Score™ of 62/100 and a GF Value™ of $4.87 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 2,450 Hardware companies, Electro-Sensors ranks better than 88.53% 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
Electro-Sensors had a gross margin of 51.26% for the quarter that ended in Mar. 2026 => Durable 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.
Electro-Sensors Gross Margin % Related Terms
Electro-Sensors Gross Margin % Historical Data
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The historical data trend for Electro-Sensors'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.
ELSE vs TRCK, AATC, ARAI: Gross Margin % Comparison
For the Scientific & Technical Instruments subindustry, Electro-Sensors'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.
Electro-Sensors Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Electro-Sensors's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Electro-Sensors'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.
Electro-Sensors (ELSE) has a Gross Margin % of 51.26% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Electro-Sensors and its competitors. This is near median its historical median of 53.25. Over the past decade, Electro-Sensors' Gross Margin % has ranged from 48.89 to 54.83. According to the industry distribution chart, Electro-Sensors ranks #281 out of 2450 companies in the Hardware industry, placing it in the top 11.5%.
Is Electro-Sensors' Gross Margin % too high?
Electro-Sensors' current Gross Margin % of 51.26% is near median its 10-year median of 53.25. Over the past 10 years, this metric has ranged from a low of 48.89 to a high of 54.83. The Hardware industry median Gross Margin % is 24.53. Electro-Sensors' value of 51.26% is 109% above this industry median. Based on the distribution chart, Electro-Sensors ranks #281 out of 2450 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Electro-Sensors has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Electro-Sensors' Gross Margin % compare to TRCK and AATC?
According to the Hardware industry distribution chart, Electro-Sensors ranks #281 out of 2450 companies for Gross Margin %. This places Electro-Sensors in the top 12% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 24.53. Electro-Sensors' value of 51.26% is 109% above this benchmark. Historically, Electro-Sensors' own Gross Margin % has ranged from 48.89 to 54.83 over the past decade. While the company's 10-year median is 53.25 vs. the industry median of 24.53, Electro-Sensors 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. Electro-Sensors's current Gross Margin % of 51.26% is 109% 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 Electro-Sensors 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. Electro-Sensors's current Gross Margin % is 51.26%, which is near median its own 10-year median of 53.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Electro-Sensors stock overvalued right now?
Based on GuruFocus' analysis, Electro-Sensors (ELSE) is currently considered Significantly Overvalued. The stock's GF Value™ is $4.87, compared to a current price of $7.65 — trading 57.1% above its estimated fair value. The current Gross Margin % is 51.26%, which is near median its 10-year median of 53.25 and 109% above the Hardware industry median of 24.53. Electro-Sensors' overall GF Score™ is 62/100 with 5 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 Electro-Sensors (ELSE), the current Gross Margin % is 51.26% 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 Electro-Sensors (ELSE) Overvalued in 2026?
Based on GuruFocus' analysis, Electro-Sensors stock appears to be overvalued.
The current stock price of $7.65 is trading 57.1% above its estimated GF Value™ of $4.87.
GuruFocus considers Electro-Sensors to be Significantly Overvalued.
Key valuation signals for ELSE:
Gross Margin %: 51.26% (near median its 10-year median of 53.25)
GF Value™: $4.87 vs. price of $7.65 (57.1% above fair value)
Industry Position: 109% above the Hardware median (#281 of 2450)
No single metric tells the full story. See the ELSE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Electro-Sensors Inc manufactures and sells industrial production monitoring and process control systems. It manufactures a complete line of monitoring and control systems for a wide range of industrial machine applications. The systems measure machine production and operation rates, as well as regulate the speed of related machines in production processes. Its products include motor drive control, position monitors, sensor targets, signal conditioners, speed sensors, speed switches, tachometers, temperature sensors, vibration monitors, etc.
62GF Score
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