Leonardo SpAFINMY -6.79%77 Gross Margin % is 9.80% as of Mar. 2026, which is 10% below its 10-year median of 10.86. GuruFocus rates FINMY with a GF Score™ of 77/100 and a GF Value™ of $17.77 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 342 Aerospace & Defense companies, Leonardo SpA ranks worse than 83.63% 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
Leonardo SpA had a gross margin of 9.80% for the quarter that ended in Mar. 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.
Leonardo SpA Gross Margin % Related Terms
Leonardo SpA Gross Margin % Historical Data
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The historical data trend for Leonardo SpA'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 Aerospace & Defense subindustry, Leonardo SpA'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.
Leonardo SpA Gross Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Leonardo SpA's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Leonardo SpA'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.
Leonardo SpA (FINMY) has a Gross Margin % of 9.80% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Leonardo SpA and its competitors. This is 10% below median its historical median of 10.86. Over the past decade, Leonardo SpA's Gross Margin % has ranged from 8.72 to 12.11. According to the industry distribution chart, Leonardo SpA ranks #286 out of 342 companies in the Aerospace & Defense industry, placing it in the top 83.6%.
Is Leonardo SpA's Gross Margin % too high?
Leonardo SpA's current Gross Margin % of 9.80% is 10% below median its 10-year median of 10.86. Over the past 10 years, this metric has ranged from a low of 8.72 to a high of 12.11. The Aerospace & Defense industry median Gross Margin % is 26.65. Leonardo SpA's value of 9.80% is 63.2% below this industry median. Based on the distribution chart, Leonardo SpA ranks #286 out of 342 companies in the Aerospace & Defense industry, which is in the bottom quartile relative to peers. Overall, Leonardo SpA has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Leonardo SpA's Gross Margin % compare to GE and RTX?
According to the Aerospace & Defense industry distribution chart, Leonardo SpA ranks #286 out of 342 companies for Gross Margin %. This places Leonardo SpA in the lower half of its industry. The industry median Gross Margin % is 26.65. Leonardo SpA's value of 9.80% is 63.2% below this benchmark. Historically, Leonardo SpA's own Gross Margin % has ranged from 8.72 to 12.11 over the past decade. While the company's 10-year median is 10.86 vs. the industry median of 26.65, Leonardo SpA has consistently been below 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 an Aerospace & Defense company?
The median Gross Margin % among Aerospace & Defense companies is 26.65, based on 342 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. Leonardo SpA's current Gross Margin % of 9.80% is 63.2% 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 Leonardo SpA and its competitors. For the Aerospace & Defense industry, the median Gross Margin % is 26.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Leonardo SpA's current Gross Margin % is 9.80%, which is 10% below median its own 10-year median of 10.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Leonardo SpA stock overvalued right now?
Based on GuruFocus' analysis, Leonardo SpA (FINMY) is currently considered Significantly Overvalued. The stock's GF Value™ is $17.77, compared to a current price of $26.90 — trading 51.4% above its estimated fair value. The current Gross Margin % is 9.80%, which is 10% below median its 10-year median of 10.86 and 63.2% below the Aerospace & Defense industry median of 26.65. Leonardo SpA's overall GF Score™ is 77/100 with 1 warning sign 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 Leonardo SpA (FINMY), the current Gross Margin % is 9.80% 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 Leonardo SpA (FINMY) Overvalued in 2026?
Based on GuruFocus' analysis, Leonardo SpA stock appears to be overvalued.
The current stock price of $26.90 is trading 51.4% above its estimated GF Value™ of $17.77.
GuruFocus considers Leonardo SpA to be Significantly Overvalued.
Key valuation signals for FINMY:
Gross Margin %: 9.80% (10% below median its 10-year median of 10.86)
GF Value™: $17.77 vs. price of $26.90 (51.4% above fair value)
Industry Position: 63.2% below the Aerospace & Defense median (#286 of 342)
No single metric tells the full story. See the FINMY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Leonardo is a leading European security firm, with 30.2% of shares owned by the Italian government. Divisions include helicopters, defence electronics & security, aeronautics, cyber & security solutions, and space.The helicopter division serves both military and civil markets. Defence electronics & security accesses the US market through the Leonardo DRS subsidiary. Aeronautics integrates aircraft and aerostructures, participating in major programs like Eurofighter, F-35, and the Global Combat Air Programme, or GCAP. It also supplies large structural components to major commercial aircraft programs. Leonardo is currently evolving from a defense firm into a data-driven global security company.
77GF Score
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