Focus UniversalFCUV -8.39%42 Gross Margin % is 31.25% as of Mar. 2026, which is 105% above its 10-year median of 15.26. GuruFocus rates FCUV with a GF Score™ of 42/100 and a GF Value™ of $30.27 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 2,450 Hardware companies, Focus Universal ranks worse than 99.39% 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
Focus Universal had a gross margin of 31.25% for the quarter that ended in Mar. 2026 => Competition eroding margins
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.
Focus Universal Gross Margin % Related Terms
Focus Universal Gross Margin % Historical Data
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The historical data trend for Focus Universal'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.
FCUV vs UCLE, DPLS, GWSO: Gross Margin % Comparison
For the Scientific & Technical Instruments subindustry, Focus Universal'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.
Focus Universal Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Focus Universal's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Focus Universal'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.
Focus Universal (FCUV) has a Gross Margin % of 31.25% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Focus Universal and its competitors. This is 105% above median its historical median of 15.26. According to the industry distribution chart, Focus Universal ranks #2435 out of 2450 companies in the Hardware industry, placing it in the top 99.4%.
Is Focus Universal's Gross Margin % too high?
Focus Universal's current Gross Margin % of 31.25% is 105% above median its 10-year median of 15.26. The Hardware industry median Gross Margin % is 24.53. Focus Universal's value of 31.25% is 27.4% above this industry median. Based on the distribution chart, Focus Universal ranks #2435 out of 2450 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Focus Universal has a GF Score™ of 42/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Focus Universal's Gross Margin % compare to UCLE and DPLS?
According to the Hardware industry distribution chart, Focus Universal ranks #2435 out of 2450 companies for Gross Margin %. This places Focus Universal in the lower half of its industry. The industry median Gross Margin % is 24.53. Focus Universal's value of 31.25% is 27.4% above this benchmark. While the company's 10-year median is 15.26 vs. the industry median of 24.53, Focus Universal 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. Focus Universal's current Gross Margin % of 31.25% is 27.4% 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 Focus Universal 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. Focus Universal's current Gross Margin % is 31.25%, which is 105% above median its own 10-year median of 15.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Focus Universal stock overvalued right now?
Based on GuruFocus' analysis, Focus Universal (FCUV) is currently considered Possible Value Trap. The stock's GF Value™ is $30.27, compared to a current price of $4.30 — trading 85.8% below its estimated fair value. The current Gross Margin % is 31.25%, which is 105% above median its 10-year median of 15.26 and 27.4% above the Hardware industry median of 24.53. Focus Universal's overall GF Score™ is 42/100 with 6 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 Focus Universal (FCUV), the current Gross Margin % is 31.25% 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 Focus Universal (FCUV) Overvalued in 2026?
Based on GuruFocus' analysis, Focus Universal stock appears to be undervalued.
The current stock price of $4.30 is trading 85.8% below its estimated GF Value™ of $30.27.
GuruFocus considers Focus Universal to be Possible Value Trap.
Key valuation signals for FCUV:
Gross Margin %: 31.25% (105% above median its 10-year median of 15.26)
GF Value™: $30.27 vs. price of $4.30 (85.8% below fair value)
Industry Position: 27.4% above the Hardware median (#2435 of 2450)
No single metric tells the full story. See the FCUV stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Focus Universal Inc focuses on commercializing universal smart technology and financial reporting software. It plans to utilize its universal smart technology for smart meters and automation systems, which will be incorporated into IoT devices. The company has developed the five proprietary platform technologies: device on a chip; universal smart instrumentation platform (USIP); 5G ultra-narrowband technology; ultra-narrowband power line communication (PLC) technology; and its financial reporting software. The company consists of two segments: LED and IoT Installation Services, and SEC Financial Software segment. It derives the majority of the revenue from LED and IoT Installation Services segment which handles LED and IoT installation and management business.
42GF Score
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