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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Franklin WirelessFKWL -1.27%46 Gross Margin % is 16.06% as of Mar. 2026, which is 5% below its 10-year median of 16.89. GuruFocus rates FKWL with a GF Score™ of 46/100 and a GF Value™ of $4.11 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 2,453 Hardware companies, Franklin Wireless ranks worse than 62.58% on this metric.
Franklin Wireless Corp gross margin has been in long-term decline. The average rate of decline per year is -5.4%.
The historical rank and industry rank for Franklin Wireless's Gross Margin % or its related term are showing as below:
FKWL'
s Gross Margin % Range Over the Past 10 Years
Min: 11.39 Med: 16.89 Max: 19.35
Current: 19.25
During the past 13 years, the highestGross Margin % of Franklin Wireless was 19.35%. The lowest was 11.39%. And the median was 16.89%.
FKWL's Gross Margin % is ranked worse than 62.58% of 2453
companies
in the Hardware industry
Industry Median: 24.49
vs FKWL: 19.25
Franklin Wireless had a gross margin of 16.06% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Franklin Wireless was -5.40% per year.
Franklin Wireless (NAS:FKWL) 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
Franklin Wireless had a gross margin of 16.06% 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.
Franklin Wireless Gross Margin % Related Terms
Franklin Wireless Gross Margin % Historical Data
* Premium members only.
The historical data trend for Franklin Wireless'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.
FKWL vs BOSC, FIEE, UTSI: Gross Margin % Comparison
For the Communication Equipment subindustry, Franklin Wireless'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.
Franklin Wireless Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Franklin Wireless's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Franklin Wireless'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.
Franklin Wireless (FKWL) has a Gross Margin % of 16.06% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Franklin Wireless and its competitors. This is near median its historical median of 16.89. Over the past decade, Franklin Wireless' Gross Margin % has ranged from 11.39 to 19.35. According to the industry distribution chart, Franklin Wireless ranks #1535 out of 2453 companies in the Hardware industry, placing it in the top 62.6%.
Is Franklin Wireless' Gross Margin % too high?
Franklin Wireless' current Gross Margin % of 16.06% is near median its 10-year median of 16.89. Over the past 10 years, this metric has ranged from a low of 11.39 to a high of 19.35. The Hardware industry median Gross Margin % is 24.49. Franklin Wireless' value of 16.06% is 34.4% below this industry median. Based on the distribution chart, Franklin Wireless ranks #1535 out of 2453 companies in the Hardware industry, which is below the industry midpoint. Overall, Franklin Wireless has a GF Score™ of 46/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Franklin Wireless' Gross Margin % compare to BOSC and FIEE?
According to the Hardware industry distribution chart, Franklin Wireless ranks #1535 out of 2453 companies for Gross Margin %. This places Franklin Wireless in the lower half of its industry. The industry median Gross Margin % is 24.49. Franklin Wireless' value of 16.06% is 34.4% below this benchmark. Historically, Franklin Wireless' own Gross Margin % has ranged from 11.39 to 19.35 over the past decade. While the company's 10-year median is 16.89 vs. the industry median of 24.49, Franklin Wireless 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 a Hardware company?
The median Gross Margin % among Hardware companies is 24.49, based on 2,453 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. Franklin Wireless's current Gross Margin % of 16.06% is 34.4% 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 Franklin Wireless and its competitors. For the Hardware industry, the median Gross Margin % is 24.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Franklin Wireless's current Gross Margin % is 16.06%, which is near median its own 10-year median of 16.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Franklin Wireless stock overvalued right now?
Based on GuruFocus' analysis, Franklin Wireless (FKWL) is currently considered Possible Value Trap. The stock's GF Value™ is $4.11, compared to a current price of $2.34 — trading 43.1% below its estimated fair value. The current Gross Margin % is 16.06%, which is near median its 10-year median of 16.89 and 34.4% below the Hardware industry median of 24.49. Franklin Wireless' overall GF Score™ is 46/100 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 Franklin Wireless (FKWL), the current Gross Margin % is 16.06% 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 Franklin Wireless (FKWL) Overvalued in 2026?
Based on GuruFocus' analysis, Franklin Wireless stock appears to be undervalued.
The current stock price of $2.34 is trading 43.1% below its estimated GF Value™ of $4.11.
GuruFocus considers Franklin Wireless to be Possible Value Trap.
Key valuation signals for FKWL:
Gross Margin %: 16.06% (near median its 10-year median of 16.89)
GF Value™: $4.11 vs. price of $2.34 (43.1% below fair value)
Industry Position: 34.4% below the Hardware median (#1535 of 2453)
No single metric tells the full story. See the FKWL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Franklin Wireless Corp is a provider of wireless solutions, including mobile hotspots, routers, and modems, as well as hardware and software products that support machine-to-machine (M2M) applications and the Internet of Things (IoT). Its M2M and IoT solutions include embedded modules, modems, and gateways built to deliver reliable always-on connectivity supporting a spectrum of applications. These products are designed to solve wireless connectivity challenges in a range of vertical markets, including video surveillance, digital signage, home security, oil and gas exploration, kiosks, fleet management, smart grid, vehicle diagnostics, and telematics.
46GF Score
Get the complete analysis for FKWL
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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