Eddy Smart Home Solutions (OTCPK:ESHSF) 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
Eddy Smart Home Solutions had a gross margin of 68.63% 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.
Eddy Smart Home Solutions Gross Margin % Related Terms
Eddy Smart Home Solutions 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.
ESHSF vs COHR, KEYS, GRMN: Gross Margin % Comparison
For the Scientific & Technical Instruments subindustry, Eddy Smart Home Solutions'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.
Eddy Smart Home Solutions Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Eddy Smart Home Solutions's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Eddy Smart Home Solutions'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.
Eddy Smart Home Solutions (ESHSF) has a Gross Margin % of 68.63% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Eddy Smart Home Solutions and its competitors. This is 25% above median its historical median of 54.88. Over the past decade, Eddy Smart Home Solutions' Gross Margin % has ranged from 42.18 to 62.83. According to the industry distribution chart, Eddy Smart Home Solutions ranks #133 out of 2450 companies in the Hardware industry, placing it in the top 5.4%.
Is Eddy Smart Home Solutions' Gross Margin % too high?
Eddy Smart Home Solutions' current Gross Margin % of 68.63% is 25% above median its 10-year median of 54.88. Over the past 10 years, this metric has ranged from a low of 42.18 to a high of 62.83. The Hardware industry median Gross Margin % is 24.53. Eddy Smart Home Solutions' value of 68.63% is 179.8% above this industry median. Based on the distribution chart, Eddy Smart Home Solutions ranks #133 out of 2450 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Eddy Smart Home Solutions has a GF Score™ of 49/100, reflecting its overall financial health beyond just this single metric.
How does Eddy Smart Home Solutions' Gross Margin % compare to COHR and KEYS?
According to the Hardware industry distribution chart, Eddy Smart Home Solutions ranks #133 out of 2450 companies for Gross Margin %. This places Eddy Smart Home Solutions in the top 5% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 24.53. Eddy Smart Home Solutions' value of 68.63% is 179.8% above this benchmark. Historically, Eddy Smart Home Solutions' own Gross Margin % has ranged from 42.18 to 62.83 over the past decade. While the company's 10-year median is 54.88 vs. the industry median of 24.53, Eddy Smart Home Solutions 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. Eddy Smart Home Solutions's current Gross Margin % of 68.63% is 179.8% 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 Eddy Smart Home Solutions 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. Eddy Smart Home Solutions's current Gross Margin % is 68.63%, which is 25% above median its own 10-year median of 54.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Eddy Smart Home Solutions stock overvalued right now?
Eddy Smart Home Solutions (ESHSF) has a current Gross Margin % of 68.63%. The stock's GF Value™ is $1.03, compared to a current price of $1.00 — trading 2.9% below its estimated fair value. The current Gross Margin % is 68.63%, which is 25% above median its 10-year median of 54.88 and 179.8% above the Hardware industry median of 24.53. Eddy Smart Home Solutions' overall GF Score™ is 49/100 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 Eddy Smart Home Solutions (ESHSF), the current Gross Margin % is 68.63% 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 Eddy Smart Home Solutions (ESHSF) Overvalued in 2026?
Based on GuruFocus' analysis, Eddy Smart Home Solutions stock appears to be undervalued.
The current stock price of $1.00 is trading 2.9% below its estimated GF Value™ of $1.03.
Key valuation signals for ESHSF:
Gross Margin %: 68.63% (25% above median its 10-year median of 54.88)
GF Value™: $1.03 vs. price of $1.00 (2.9% below fair value)
Industry Position: 179.8% above the Hardware median (#133 of 2450)
No single metric tells the full story. See the ESHSF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Eddy Smart Home Solutions Ltd is a North American provider and developer of commercial and residential smart water metering products and monitoring services, helping property owners and developers protect, control and conserve water usage by combining water sensing devices with behavioural learning software. The company operates in three segments: Multi-Family Residential (MFR), Single-Family Residential (SFR) and Commercial and Industrial (C&I).
49GF Score
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