Aviat NetworksFRA:HSD1 +6.21%72 Gross Margin % is 29.28% as of Mar. 2026, which is 15% below its 10-year median of 34.34. GuruFocus rates FRA:HSD1 with a GF Score™ of 72/100 and a GF Value™ of €20.19 (Fairly Valued). The stock has 6 warning signs investors should review. Among 2,454 Hardware companies, Aviat Networks ranks better than 64.91% 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
Aviat Networks had a gross margin of 29.28% 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.
Aviat Networks Gross Margin % Related Terms
Aviat Networks Gross Margin % Historical Data
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The historical data trend for Aviat Networks'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:HSD1 vs LTRX, SILC, BKTI: Gross Margin % Comparison
For the Communication Equipment subindustry, Aviat Networks'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.
Aviat Networks Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Aviat Networks's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Aviat Networks'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.
Aviat Networks (FRA:HSD1) has a Gross Margin % of 29.28% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Aviat Networks and its competitors. This is 15% below median its historical median of 34.34. Over the past decade, Aviat Networks' Gross Margin % has ranged from 22.97 to 37.33. According to the industry distribution chart, Aviat Networks ranks #861 out of 2454 companies in the Hardware industry, placing it in the top 35.1%.
Is Aviat Networks' Gross Margin % too high?
Aviat Networks' current Gross Margin % of 29.28% is 15% below median its 10-year median of 34.34. Over the past 10 years, this metric has ranged from a low of 22.97 to a high of 37.33. The Hardware industry median Gross Margin % is 24.53. Aviat Networks' value of 29.28% is 19.4% above this industry median. Based on the distribution chart, Aviat Networks ranks #861 out of 2454 companies in the Hardware industry, which is above the industry midpoint. Overall, Aviat Networks has a GF Score™ of 72/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Aviat Networks' Gross Margin % compare to LTRX and SILC?
According to the Hardware industry distribution chart, Aviat Networks ranks #861 out of 2454 companies for Gross Margin %. This puts Aviat Networks in the upper half of its industry. The industry median Gross Margin % is 24.53. Aviat Networks' value of 29.28% is 19.4% above this benchmark. Historically, Aviat Networks' own Gross Margin % has ranged from 22.97 to 37.33 over the past decade. While the company's 10-year median is 34.34 vs. the industry median of 24.53, Aviat Networks 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 24.53, 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. Aviat Networks's current Gross Margin % of 29.28% is 19.4% 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 Aviat Networks and its competitors. For the Hardware industry, the median Gross Margin % is 24.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aviat Networks's current Gross Margin % is 29.28%, which is 15% below median its own 10-year median of 34.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aviat Networks stock overvalued right now?
Based on GuruFocus' analysis, Aviat Networks (FRA:HSD1) is currently considered Fairly Valued. The stock's GF Value™ is €20.19, compared to a current price of €18.80 — trading 6.9% below its estimated fair value. The current Gross Margin % is 29.28%, which is 15% below median its 10-year median of 34.34 and 19.4% above the Hardware industry median of 24.53. Aviat Networks' overall GF Score™ is 72/100 with 6 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 Aviat Networks (FRA:HSD1), the current Gross Margin % is 29.28% 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 Aviat Networks (FRA:HSD1) Overvalued in 2026?
Based on GuruFocus' analysis, Aviat Networks stock appears to be undervalued.
The current stock price of €18.80 is trading 6.9% below its estimated GF Value™ of €20.19.
GuruFocus considers Aviat Networks to be Fairly Valued.
Key valuation signals for FRA:HSD1:
Gross Margin %: 29.28% (15% below median its 10-year median of 34.34)
GF Value™: €20.19 vs. price of €18.80 (6.9% below fair value)
Industry Position: 19.4% above the Hardware median (#861 of 2454)
No single metric tells the full story. See the FRA:HSD1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aviat Networks Inc provides wireless transport and access networking solutions designed to support telecommunications operators and private network providers situated in various countries. The company offers a range of microwave and millimeter wave radios, network management tools, and services that enable high-capacity, secure, and reliable data transport over wireless networks. Its products serve diverse clients including mobile operators, public safety organizations, utilities, government agencies, and enterprise customers. Aviat generates revenue from the sale of its networking equipment, professional services, and ongoing support contracts. Its operations cover various regions including the Americas, Europe, Asia Pacific, the Middle East, and Africa.
72GF Score
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