Frequency ElectronicsFRA:98K +9.40%58 Gross Margin % is 39.23% as of Jan. 2026, which is 47% above its 10-year median of 26.77. GuruFocus rates FRA:98K with a GF Score™ of 58/100 and a GF Value™ of €13.75 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 2,454 Hardware companies, Frequency Electronics ranks better than 74% on this metric.
FRA:98K's Gross Margin % is ranked better than 74% of 2454
companies
in the Hardware industry
Industry Median: 24.565
vs FRA:98K: 37.95
Frequency Electronics had a gross margin of 39.23% for the quarter that ended in Jan. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Frequency Electronics was 18.60% per year.
Frequency Electronics (FRA:98K) 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
Frequency Electronics had a gross margin of 39.23% for the quarter that ended in Jan. 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.
Frequency Electronics Gross Margin % Related Terms
Frequency Electronics Gross Margin % Historical Data
* Premium members only.
The historical data trend for Frequency Electronics'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.
FRA:98K vs NTGR, CLFD, GILT: Gross Margin % Comparison
For the Communication Equipment subindustry, Frequency Electronics'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.
Frequency Electronics Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Frequency Electronics's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Frequency Electronics'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.
Frequency Electronics (FRA:98K) has a Gross Margin % of 39.23% as of Jan. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Frequency Electronics and its competitors. This is 47% above median its historical median of 26.77. Over the past decade, Frequency Electronics' Gross Margin % has ranged from 13.10 to 43.11. According to the industry distribution chart, Frequency Electronics ranks #638 out of 2454 companies in the Hardware industry, placing it in the top 26%.
Is Frequency Electronics' Gross Margin % too high?
Frequency Electronics' current Gross Margin % of 39.23% is 47% above median its 10-year median of 26.77. Over the past 10 years, this metric has ranged from a low of 13.10 to a high of 43.11. The Hardware industry median Gross Margin % is 24.57. Frequency Electronics' value of 39.23% is 59.7% above this industry median. Based on the distribution chart, Frequency Electronics ranks #638 out of 2454 companies in the Hardware industry, which is above the industry midpoint. Overall, Frequency Electronics has a GF Score™ of 58/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Frequency Electronics' Gross Margin % compare to NTGR and CLFD?
According to the Hardware industry distribution chart, Frequency Electronics ranks #638 out of 2454 companies for Gross Margin %. This puts Frequency Electronics in the upper half of its industry. The industry median Gross Margin % is 24.57. Frequency Electronics' value of 39.23% is 59.7% above this benchmark. Historically, Frequency Electronics' own Gross Margin % has ranged from 13.10 to 43.11 over the past decade. While the company's 10-year median is 26.77 vs. the industry median of 24.57, Frequency Electronics 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 24.57, 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. Frequency Electronics's current Gross Margin % of 39.23% is 59.7% 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 Frequency Electronics 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. Frequency Electronics's current Gross Margin % is 39.23%, which is 47% above median its own 10-year median of 26.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Frequency Electronics stock overvalued right now?
Based on GuruFocus' analysis, Frequency Electronics (FRA:98K) is currently considered Significantly Overvalued. The stock's GF Value™ is €13.75, compared to a current price of €56.45 — trading 310.5% above its estimated fair value. The current Gross Margin % is 39.23%, which is 47% above median its 10-year median of 26.77 and 59.7% above the Hardware industry median of 24.57. Frequency Electronics' overall GF Score™ is 58/100 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 Frequency Electronics (FRA:98K), the current Gross Margin % is 39.23% as of Jan. 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 Frequency Electronics (FRA:98K) Overvalued in 2026?
Based on GuruFocus' analysis, Frequency Electronics stock appears to be overvalued.
The current stock price of €56.45 is trading 310.5% above its estimated GF Value™ of €13.75.
GuruFocus considers Frequency Electronics to be Significantly Overvalued.
Key valuation signals for FRA:98K:
Gross Margin %: 39.23% (47% above median its 10-year median of 26.77)
GF Value™: €13.75 vs. price of €56.45 (310.5% above fair value)
Industry Position: 59.7% above the Hardware median (#638 of 2454)
No single metric tells the full story. See the FRA:98K stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Frequency Electronics Inc is engaged in the design, development, and manufacture of high-precision timing, and frequency control products for space, air, sea, and terrestrial applications. The company has FEI-NY and FEI-Zyfer reportable segments. It derives the majority of its revenues from the FEI-NY segment. FEI-NY segment operations consist principally of precision time and frequency control products used in three principal markets namely communication satellites (both commercial and U.S. Government-funded); terrestrial cellular telephone or other ground-based telecommunication stations; and other components and systems for the U.S. military.
58GF Score
Get the complete analysis for FRA:98K
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:98K has been successfully added to your 
