Avenir TelecomFRA:AW5 -9.30%20 Gross Margin % is 15.69% as of Sep. 2025, which is 27% above its 10-year median of 12.32. GuruFocus rates FRA:AW5 with a GF Score™ of 20/100 and a GF Value™ of €0.03 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 2,454 Hardware companies, Avenir Telecom ranks worse than 98.08% 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
Avenir Telecom had a gross margin of 15.69% for the quarter that ended in Sep. 2025 => 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.
Avenir Telecom Gross Margin % Related Terms
Avenir Telecom Gross Margin % Historical Data
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The historical data trend for Avenir Telecom'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:AW5 vs CSCO, CIEN, MSI: Gross Margin % Comparison
For the Communication Equipment subindustry, Avenir Telecom'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.
Avenir Telecom Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Avenir Telecom's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Avenir Telecom'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.
Avenir Telecom (FRA:AW5) has a Gross Margin % of 15.69% as of Sep. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Avenir Telecom and its competitors. This is 27% above median its historical median of 12.32. According to the industry distribution chart, Avenir Telecom ranks #2407 out of 2454 companies in the Hardware industry, placing it in the top 98.1%.
Is Avenir Telecom's Gross Margin % too high?
Avenir Telecom's current Gross Margin % of 15.69% is 27% above median its 10-year median of 12.32. The Hardware industry median Gross Margin % is 24.57. Avenir Telecom's value of 15.69% is 36.1% below this industry median. Based on the distribution chart, Avenir Telecom ranks #2407 out of 2454 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Avenir Telecom has a GF Score™ of 20/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Avenir Telecom's Gross Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Avenir Telecom ranks #2407 out of 2454 companies for Gross Margin %. This places Avenir Telecom in the lower half of its industry. The industry median Gross Margin % is 24.57. Avenir Telecom's value of 15.69% is 36.1% below this benchmark. While the company's 10-year median is 12.32 vs. the industry median of 24.57, Avenir Telecom 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. Avenir Telecom's current Gross Margin % of 15.69% is 36.1% 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 Avenir Telecom 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. Avenir Telecom's current Gross Margin % is 15.69%, which is 27% above median its own 10-year median of 12.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Avenir Telecom stock overvalued right now?
Based on GuruFocus' analysis, Avenir Telecom (FRA:AW5) is currently considered Significantly Overvalued. The stock's GF Value™ is €0.03, compared to a current price of €0.08 — trading 160% above its estimated fair value. The current Gross Margin % is 15.69%, which is 27% above median its 10-year median of 12.32 and 36.1% below the Hardware industry median of 24.57. Avenir Telecom's overall GF Score™ is 20/100 with 7 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 Avenir Telecom (FRA:AW5), the current Gross Margin % is 15.69% as of Sep. 2025. 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 Avenir Telecom (FRA:AW5) Overvalued in 2026?
Based on GuruFocus' analysis, Avenir Telecom stock appears to be overvalued.
The current stock price of €0.08 is trading 160% above its estimated GF Value™ of €0.03.
GuruFocus considers Avenir Telecom to be Significantly Overvalued.
Key valuation signals for FRA:AW5:
Gross Margin %: 15.69% (27% above median its 10-year median of 12.32)
GF Value™: €0.03 vs. price of €0.08 (160% above fair value)
Industry Position: 36.1% below the Hardware median (#2407 of 2454)
No single metric tells the full story. See the FRA:AW5 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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