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
Virgin Galactic Holdings had a gross margin of -12,980.61% 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.
Virgin Galactic Holdings Gross Margin % Related Terms
Virgin Galactic Holdings 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.
FRA:0QL0 vs PKE, RGR, SWBI: Gross Margin % Comparison
For the Aerospace & Defense subindustry, Virgin Galactic 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.
Virgin Galactic Holdings Gross Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Virgin Galactic Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Virgin Galactic 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.
Virgin Galactic Holdings (FRA:0QL0) has a Gross Margin % of -12,980.61% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Virgin Galactic Holdings and its competitors. According to the industry distribution chart, Virgin Galactic Holdings ranks #342 out of 342 companies in the Aerospace & Defense industry.
Is Virgin Galactic Holdings' Gross Margin % too high?
Virgin Galactic Holdings' current Gross Margin % is -12,980.61%. Based on the distribution chart, Virgin Galactic Holdings ranks #342 out of 342 companies in the Aerospace & Defense industry, which is in the bottom quartile relative to peers. Overall, Virgin Galactic Holdings has a GF Score™ of 70/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Virgin Galactic Holdings' Gross Margin % compare to PKE and RGR?
According to the Aerospace & Defense industry distribution chart, Virgin Galactic Holdings ranks #342 out of 342 companies for Gross Margin %. This places Virgin Galactic Holdings in the lower half of its industry. The industry median Gross Margin % is 26.65. 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. 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 Virgin Galactic Holdings 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. Virgin Galactic Holdings's current Gross Margin % is -12,980.61%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Virgin Galactic Holdings stock overvalued right now?
Based on GuruFocus' analysis, Virgin Galactic Holdings (FRA:0QL0) is currently considered Possible Value Trap. The stock's GF Value™ is €3.36, compared to a current price of €2.44 — trading 27.4% below its estimated fair value. The current Gross Margin % is -12,980.61%. Virgin Galactic Holdings' overall GF Score™ is 70/100 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 Virgin Galactic Holdings (FRA:0QL0), the current Gross Margin % is -12,980.61% 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 Virgin Galactic Holdings (FRA:0QL0) Overvalued in 2026?
Based on GuruFocus' analysis, Virgin Galactic Holdings stock appears to be undervalued.
The current stock price of €2.44 is trading 27.4% below its estimated GF Value™ of €3.36.
GuruFocus considers Virgin Galactic Holdings to be Possible Value Trap.
Key valuation signals for FRA:0QL0:
Gross Margin %: -12,980.61%
GF Value™: €3.36 vs. price of €2.44 (27.4% below fair value)
No single metric tells the full story. See the FRA:0QL0 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Virgin Galactic Holdings Inc is a United States-based vertically integrated aerospace company pioneering human spaceflight for private individuals & researchers, and it also manufactures air and space vehicles. Using technologies, the company is developing a spaceflight system designed to offer its customers a multi-day and transformative experience. This culminates in a spaceflight that includes views of Earth from space and several minutes of weightlessness that will launch from Spaceport America, New Mexico.
70GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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