XiaomiFRA:3CP -2.91%82 Gross Margin % is 22.00% as of Mar. 2026, which is 38% above its 10-year median of 15.97. GuruFocus rates FRA:3CP with a GF Score™ of 82/100 and a GF Value™ of €3.67 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 2,454 Hardware companies, Xiaomi ranks worse than 56.07% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Xiaomi's Gross Profit for the
three
months ended in Mar. 2026 was €2,737 Mil. Xiaomi's Revenue for the
three
months ended in Mar. 2026 was €12,443 Mil. Therefore, Xiaomi's Gross Margin % for the quarter that ended in Mar. 2026 was 22.00%.
The historical rank and industry rank for Xiaomi's Gross Margin % or its related term are showing as below:
FRA:3CP'
s Gross Margin % Range Over the Past 10 Years
Min: 10.59 Med: 15.97 Max: 22.26
Current: 22.06
During the past 11 years, the highestGross Margin % of Xiaomi was 22.26%. The lowest was 10.59%. And the median was 15.97%.
FRA:3CP's Gross Margin % is ranked worse than 56.07% of 2454
companies
in the Hardware industry
Industry Median: 24.565
vs FRA:3CP: 22.06
Xiaomi had a gross margin of 22.00% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Xiaomi was 8.00% per year.
Xiaomi (FRA:3CP) 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
Xiaomi had a gross margin of 22.00% 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.
Xiaomi Gross Margin % Related Terms
Xiaomi Gross Margin % Historical Data
* Premium members only.
The historical data trend for Xiaomi'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 Consumer Electronics subindustry, Xiaomi'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.
Xiaomi Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Xiaomi's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Xiaomi'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.
Xiaomi (FRA:3CP) has a Gross Margin % of 22.00% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Xiaomi and its competitors. This is 38% above median its historical median of 15.97. Over the past decade, Xiaomi's Gross Margin % has ranged from 10.59 to 22.26. According to the industry distribution chart, Xiaomi ranks #1376 out of 2454 companies in the Hardware industry, placing it in the top 56.1%.
Is Xiaomi's Gross Margin % too high?
Xiaomi's current Gross Margin % of 22.00% is 38% above median its 10-year median of 15.97. Over the past 10 years, this metric has ranged from a low of 10.59 to a high of 22.26. The Hardware industry median Gross Margin % is 24.57. Xiaomi's value of 22.00% is 10.4% below this industry median. Based on the distribution chart, Xiaomi ranks #1376 out of 2454 companies in the Hardware industry, which is below the industry midpoint. Overall, Xiaomi has a GF Score™ of 82/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Xiaomi's Gross Margin % compare to AAPL?
According to the Hardware industry distribution chart, Xiaomi ranks #1376 out of 2454 companies for Gross Margin %. This places Xiaomi in the lower half of its industry. The industry median Gross Margin % is 24.57. Xiaomi's value of 22.00% is 10.4% below this benchmark. Historically, Xiaomi's own Gross Margin % has ranged from 10.59 to 22.26 over the past decade. While the company's 10-year median is 15.97 vs. the industry median of 24.57, Xiaomi 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 24.57, based on 2,454 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. Xiaomi's current Gross Margin % of 22.00% is 10.4% 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 Xiaomi and its competitors. For the Hardware industry, the median Gross Margin % is 24.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Xiaomi's current Gross Margin % is 22.00%, which is 38% above median its own 10-year median of 15.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Xiaomi stock overvalued right now?
Based on GuruFocus' analysis, Xiaomi (FRA:3CP) is currently considered Possible Value Trap. The stock's GF Value™ is €3.67, compared to a current price of €2.40 — trading 34.6% below its estimated fair value. The current Gross Margin % is 22.00%, which is 38% above median its 10-year median of 15.97 and 10.4% below the Hardware industry median of 24.57. Xiaomi's overall GF Score™ is 82/100 with 4 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 Xiaomi (FRA:3CP), the current Gross Margin % is 22.00% 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 Xiaomi (FRA:3CP) Overvalued in 2026?
Based on GuruFocus' analysis, Xiaomi stock appears to be undervalued.
The current stock price of €2.40 is trading 34.6% below its estimated GF Value™ of €3.67.
GuruFocus considers Xiaomi to be Possible Value Trap.
Key valuation signals for FRA:3CP:
Gross Margin %: 22.00% (38% above median its 10-year median of 15.97)
GF Value™: €3.67 vs. price of €2.40 (34.6% below fair value)
Industry Position: 10.4% below the Hardware median (#1376 of 2454)
No single metric tells the full story. See the FRA:3CP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Xiaomi is a technology company providing products and services, founded in early 2010, focusing mainly on smartphones, Internet of Things products, and related internet services. An early adopter of online smartphone sales, Xiaomi uses a customized Android operating system called HyperOS and has recently designed its own system-on-chip. As competition in its home Chinese smartphone market intensified and growth has slowed, it has expanded into other markets and has become the smartphone market leader in India, and is gaining market share in Europe. In 2025, from a country perspective, around 67% of its overall revenue was generated in mainland China, but this should reduce when it sells EVs overseas. The company was listed on the Hong Kong market at the beginning of July 2018.
82GF 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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