Powell IndustriesFRA:PW2 +1.68%74 Gross Margin % is 29.65% as of Mar. 2026, which is 69% above its 10-year median of 17.53. GuruFocus rates FRA:PW2 with a GF Score™ of 74/100 and a GF Value™ of €61.79 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 2,996 Industrial Products companies, Powell Industries ranks better than 58.61% 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
Powell Industries had a gross margin of 29.65% 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.
Powell Industries Gross Margin % Related Terms
Powell Industries Gross Margin % Historical Data
* Premium members only.
The historical data trend for Powell Industries'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:PW2 vs AYI, ENS, AEIS: Gross Margin % Comparison
For the Electrical Equipment & Parts subindustry, Powell Industries'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.
Powell Industries Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Powell Industries's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Powell Industries'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.
Powell Industries (FRA:PW2) has a Gross Margin % of 29.65% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Powell Industries and its competitors. This is 69% above median its historical median of 17.53. Over the past decade, Powell Industries' Gross Margin % has ranged from 12.82 to 30.10. According to the industry distribution chart, Powell Industries ranks #1240 out of 2996 companies in the Industrial Products industry, placing it in the top 41.4%.
Is Powell Industries' Gross Margin % too high?
Powell Industries' current Gross Margin % of 29.65% is 69% above median its 10-year median of 17.53. Over the past 10 years, this metric has ranged from a low of 12.82 to a high of 30.10. The Industrial Products industry median Gross Margin % is 26.80. Powell Industries' value of 29.65% is 10.6% above this industry median. Based on the distribution chart, Powell Industries ranks #1240 out of 2996 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Powell Industries has a GF Score™ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Powell Industries' Gross Margin % compare to AYI and ENS?
According to the Industrial Products industry distribution chart, Powell Industries ranks #1240 out of 2996 companies for Gross Margin %. This puts Powell Industries in the upper half of its industry. The industry median Gross Margin % is 26.80. Powell Industries' value of 29.65% is 10.6% above this benchmark. Historically, Powell Industries' own Gross Margin % has ranged from 12.82 to 30.10 over the past decade. While the company's 10-year median is 17.53 vs. the industry median of 26.80, Powell Industries 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.80, based on 2,996 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. Powell Industries's current Gross Margin % of 29.65% is 10.6% 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 Powell Industries and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Powell Industries's current Gross Margin % is 29.65%, which is 69% above median its own 10-year median of 17.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Powell Industries stock overvalued right now?
Based on GuruFocus' analysis, Powell Industries (FRA:PW2) is currently considered Significantly Overvalued. The stock's GF Value™ is €61.79, compared to a current price of €218.20 — trading 253.1% above its estimated fair value. The current Gross Margin % is 29.65%, which is 69% above median its 10-year median of 17.53 and 10.6% above the Industrial Products industry median of 26.80. Powell Industries' overall GF Score™ is 74/100 with 2 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 Powell Industries (FRA:PW2), the current Gross Margin % is 29.65% 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 Powell Industries (FRA:PW2) Overvalued in 2026?
Based on GuruFocus' analysis, Powell Industries stock appears to be overvalued.
The current stock price of €218.20 is trading 253.1% above its estimated GF Value™ of €61.79.
GuruFocus considers Powell Industries to be Significantly Overvalued.
Key valuation signals for FRA:PW2:
Gross Margin %: 29.65% (69% above median its 10-year median of 17.53)
GF Value™: €61.79 vs. price of €218.20 (253.1% above fair value)
Industry Position: 10.6% above the Industrial Products median (#1240 of 2996)
No single metric tells the full story. See the FRA:PW2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Powell Industries Inc is a United States-based company that develops, designs, manufactures, and services custom-engineered equipment and systems for electrical energy distribution, control, and monitoring. The company's principal products comprise integrated power control room substations, custom-engineered modules, electrical houses, traditional and arc-resistant distribution switchgear and control gear, and so on. These products are applied in oil and gas refining, offshore oil and gas production, petrochemical, pipeline, terminal, mining and metals, light-rail traction power, electric utility, pulp and paper, and other heavy industrial markets. The company generates the majority of its sales from the United States, and the rest from Canada, Europe, Asia Pacific, and other regions.
74GF Score
Get the complete analysis for FRA:PW2
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:PW2 has been successfully added to your 
