Zepp HealthFRA:ST0 +3.78%41 Gross Margin % is 37.71% as of Mar. 2026, which is 53% above its 10-year median of 24.70. GuruFocus rates FRA:ST0 with a GF Score™ of 41/100 and a GF Value™ of €3.46 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 2,450 Hardware companies, Zepp Health ranks better than 74.37% on this metric.
The historical rank and industry rank for Zepp Health's Gross Margin % or its related term are showing as below:
FRA:ST0'
s Gross Margin % Range Over the Past 10 Years
Min: 17.74 Med: 24.7 Max: 38.46
Current: 38.35
During the past 11 years, the highestGross Margin % of Zepp Health was 38.46%. The lowest was 17.74%. And the median was 24.70%.
FRA:ST0's Gross Margin % is ranked better than 74.37% of 2450
companies
in the Hardware industry
Industry Median: 24.53
vs FRA:ST0: 38.35
Zepp Health had a gross margin of 37.71% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Zepp Health was 16.00% per year.
Zepp Health (FRA:ST0) 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
Zepp Health had a gross margin of 37.71% 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.
Zepp Health Gross Margin % Related Terms
Zepp Health Gross Margin % Historical Data
* Premium members only.
The historical data trend for Zepp Health'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:ST0 vs UEIC, AXIL, KOSS: Gross Margin % Comparison
For the Consumer Electronics subindustry, Zepp Health'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.
Zepp Health Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Zepp Health's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Zepp Health'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.
Zepp Health (FRA:ST0) has a Gross Margin % of 37.71% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Zepp Health and its competitors. This is 53% above median its historical median of 24.70. Over the past decade, Zepp Health's Gross Margin % has ranged from 17.74 to 38.46. According to the industry distribution chart, Zepp Health ranks #628 out of 2450 companies in the Hardware industry, placing it in the top 25.6%.
Is Zepp Health's Gross Margin % too high?
Zepp Health's current Gross Margin % of 37.71% is 53% above median its 10-year median of 24.70. Over the past 10 years, this metric has ranged from a low of 17.74 to a high of 38.46. The Hardware industry median Gross Margin % is 24.53. Zepp Health's value of 37.71% is 53.7% above this industry median. Based on the distribution chart, Zepp Health ranks #628 out of 2450 companies in the Hardware industry, which is above the industry midpoint. Overall, Zepp Health has a GF Score™ of 41/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zepp Health's Gross Margin % compare to UEIC and AXIL?
According to the Hardware industry distribution chart, Zepp Health ranks #628 out of 2450 companies for Gross Margin %. This puts Zepp Health in the upper half of its industry. The industry median Gross Margin % is 24.53. Zepp Health's value of 37.71% is 53.7% above this benchmark. Historically, Zepp Health's own Gross Margin % has ranged from 17.74 to 38.46 over the past decade. While the company's 10-year median is 24.70 vs. the industry median of 24.53, Zepp Health 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 2,450 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. Zepp Health's current Gross Margin % of 37.71% is 53.7% 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 Zepp Health 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. Zepp Health's current Gross Margin % is 37.71%, which is 53% above median its own 10-year median of 24.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zepp Health stock overvalued right now?
Based on GuruFocus' analysis, Zepp Health (FRA:ST0) is currently considered Modestly Overvalued. The stock's GF Value™ is €3.46, compared to a current price of €3.84 — trading 11% above its estimated fair value. The current Gross Margin % is 37.71%, which is 53% above median its 10-year median of 24.70 and 53.7% above the Hardware industry median of 24.53. Zepp Health's overall GF Score™ is 41/100 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 Zepp Health (FRA:ST0), the current Gross Margin % is 37.71% 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 Zepp Health (FRA:ST0) Overvalued in 2026?
Based on GuruFocus' analysis, Zepp Health stock appears to be overvalued.
The current stock price of €3.84 is trading 11% above its estimated GF Value™ of €3.46.
GuruFocus considers Zepp Health to be Modestly Overvalued.
Key valuation signals for FRA:ST0:
Gross Margin %: 37.71% (53% above median its 10-year median of 24.70)
GF Value™: €3.46 vs. price of €3.84 (11% above fair value)
Industry Position: 53.7% above the Hardware median (#628 of 2450)
No single metric tells the full story. See the FRA:ST0 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zepp Health Corp is engaged in the business of manufacturing smart health wearable products. The company operates in one segment which is Amazfit-branded products. The product portfolio includes smartwatches and fitness bands. Geographically, the group generates revenue from Asia-Pacific, Europe, North America and others.
41GF Score
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