XaarFRA:XAR -3.70%65 Gross Margin % is 41.87% as of Dec. 2025, which is 8% above its 10-year median of 38.82. GuruFocus rates FRA:XAR with a GF Score™ of 65/100 and a GF Value™ of €1.47 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 2,454 Hardware companies, Xaar ranks better than 75.75% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Xaar's Gross Profit for the
six
months ended in Dec. 2025 was €15.72 Mil. Xaar's Revenue for the
six
months ended in Dec. 2025 was €37.55 Mil. Therefore, Xaar's Gross Margin % for the quarter that ended in Dec. 2025 was 41.87%.
The historical rank and industry rank for Xaar's Gross Margin % or its related term are showing as below:
FRA:XAR'
s Gross Margin % Range Over the Past 10 Years
Min: 24.89 Med: 38.82 Max: 48.78
Current: 39.45
During the past 13 years, the highestGross Margin % of Xaar was 48.78%. The lowest was 24.89%. And the median was 38.82%.
FRA:XAR's Gross Margin % is ranked better than 75.75% of 2454
companies
in the Hardware industry
Industry Median: 24.565
vs FRA:XAR: 39.45
Xaar had a gross margin of 41.87% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Xaar was 6.10% per year.
Xaar (FRA:XAR) 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
Xaar had a gross margin of 41.87% for the quarter that ended in Dec. 2025 => Durable 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.
Xaar Gross Margin % Related Terms
Xaar Gross Margin % Historical Data
* Premium members only.
The historical data trend for Xaar'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:XAR vs SNDK, DELL, STX: Gross Margin % Comparison
For the Computer Hardware subindustry, Xaar'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.
Xaar Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Xaar's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Xaar'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.
Xaar (FRA:XAR) has a Gross Margin % of 41.87% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Xaar and its competitors. This is near median its historical median of 38.82. Over the past decade, Xaar's Gross Margin % has ranged from 24.89 to 48.78. According to the industry distribution chart, Xaar ranks #595 out of 2454 companies in the Hardware industry, placing it in the top 24.2%.
Is Xaar's Gross Margin % too high?
Xaar's current Gross Margin % of 41.87% is near median its 10-year median of 38.82. Over the past 10 years, this metric has ranged from a low of 24.89 to a high of 48.78. The Hardware industry median Gross Margin % is 24.57. Xaar's value of 41.87% is 70.4% above this industry median. Based on the distribution chart, Xaar ranks #595 out of 2454 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Xaar has a GF Score™ of 65/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Xaar's Gross Margin % compare to SNDK and DELL?
According to the Hardware industry distribution chart, Xaar ranks #595 out of 2454 companies for Gross Margin %. This places Xaar in the top 24% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 24.57. Xaar's value of 41.87% is 70.4% above this benchmark. Historically, Xaar's own Gross Margin % has ranged from 24.89 to 48.78 over the past decade. While the company's 10-year median is 38.82 vs. the industry median of 24.57, Xaar 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. Xaar's current Gross Margin % of 41.87% is 70.4% 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 Xaar 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. Xaar's current Gross Margin % is 41.87%, which is near median its own 10-year median of 38.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Xaar stock overvalued right now?
Based on GuruFocus' analysis, Xaar (FRA:XAR) is currently considered Modestly Undervalued. The stock's GF Value™ is €1.47, compared to a current price of €1.30 — trading 11.6% below its estimated fair value. The current Gross Margin % is 41.87%, which is near median its 10-year median of 38.82 and 70.4% above the Hardware industry median of 24.57. Xaar's overall GF Score™ is 65/100 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 Xaar (FRA:XAR), the current Gross Margin % is 41.87% as of Dec. 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 Xaar (FRA:XAR) Overvalued in 2026?
Based on GuruFocus' analysis, Xaar stock appears to be undervalued.
The current stock price of €1.30 is trading 11.6% below its estimated GF Value™ of €1.47.
GuruFocus considers Xaar to be Modestly Undervalued.
Key valuation signals for FRA:XAR:
Gross Margin %: 41.87% (near median its 10-year median of 38.82)
GF Value™: €1.47 vs. price of €1.30 (11.6% below fair value)
Industry Position: 70.4% above the Hardware median (#595 of 2454)
No single metric tells the full story. See the FRA:XAR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Xaar PLC is a digital inkjet technology company. It designs and manufactures printheads, product print systems, and Ink supply systems, which it sells globally to Original Equipment Manufacturers (OEMs) and User Developer Integrators (UDIs). The Group's technology is used in a range of manufacturing applications, including graphics, labels, direct-to-shape packaging decoration, ceramic tiles, laminates, and outer case coding, as well as printing with specialist functional fluids for manufacturing techniques. Its operations are reported under the following segments: Printhead, which generates the maximum revenue, EPS, and Megnajet. Geographically, the Group generates maximum revenue from the Americas, followed by EMEA, China, and the Rest of Asia Pacific.
65GF Score
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