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
EvoAir Holdings had a gross margin of 7.35% for the quarter that ended in Feb. 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.
EvoAir Holdings Gross Margin % Related Terms
EvoAir Holdings Gross Margin % Historical Data
* Premium members only.
The historical data trend for EvoAir Holdings'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.
EVOH vs SNRH, FINM, HHLA: Gross Margin % Comparison
For the Building Products & Equipment subindustry, EvoAir 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.
EvoAir Holdings Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, EvoAir Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where EvoAir 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.
EvoAir Holdings (EVOH) has a Gross Margin % of 7.35% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on EvoAir Holdings and its competitors.
Is EvoAir Holdings' Gross Margin % too high?
EvoAir Holdings' current Gross Margin % is 7.35%. The Construction industry median Gross Margin % is 20.71. EvoAir Holdings' value of 7.35% is 64.5% below this industry median. Overall, EvoAir Holdings has a GF Score™ of 40/100, reflecting its overall financial health beyond just this single metric.
How does EvoAir Holdings' Gross Margin % compare to SNRH and FINM?
EvoAir Holdings' Gross Margin % of 7.35% can be compared against companies in the Construction industry. The industry median Gross Margin % is 20.71. EvoAir Holdings' value of 7.35% is 64.5% below this benchmark. 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 Construction company?
The median Gross Margin % among Construction companies is 20.71, based on 1,719 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. EvoAir Holdings's current Gross Margin % of 7.35% is 64.5% 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 EvoAir Holdings and its competitors. For the Construction industry, the median Gross Margin % is 20.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. EvoAir Holdings's current Gross Margin % is 7.35%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is EvoAir Holdings stock overvalued right now?
EvoAir Holdings (EVOH) has a current Gross Margin % of 7.35%. The stock's GF Value™ is $0.11, compared to a current price of $23.00 — trading 20809.1% above its estimated fair value. The current Gross Margin % is 7.35% and 64.5% below the Construction industry median of 20.71. EvoAir Holdings' overall GF Score™ is 40/100 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 EvoAir Holdings (EVOH), the current Gross Margin % is 7.35% as of Feb. 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 EvoAir Holdings (EVOH) Overvalued in 2026?
Based on GuruFocus' analysis, EvoAir Holdings stock appears to be overvalued.
The current stock price of $23.00 is trading 20809.1% above its estimated GF Value™ of $0.11.
Key valuation signals for EVOH:
Gross Margin %: 7.35%
GF Value™: $0.11 vs. price of $23.00 (20809.1% above fair value)
Industry Position: 64.5% below the Construction median
No single metric tells the full story. See the EVOH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
EvoAir Holdings Inc is engaged in the research and development, manufacturing, sale, and marketing of heating, ventilation, and air conditioning (HVAC) products. The company offers a line of HVAC and related products focusing on providing eco-friendly air conditioning and air purifying solutions through its heat emission control (HECS) technology. Its product portfolio includes e-Cond EVO, an eco-friendly air-conditioning system, E-Cond a line of air purifier products, EvoAir, and QCOV, among other air conditioning and air sanitizing products.
40GF Score
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