IEHIEHC +8.75%45 Gross Margin % is 20.92% as of Mar. 2026, which is 20% below its 10-year median of 26.02. GuruFocus rates IEHC with a GF Score™ of 45/100 and a GF Value™ of $10.79 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 2,450 Hardware companies, IEH ranks worse than 63.63% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. IEH's Gross Profit for the
three
months ended in Mar. 2026 was $1.79 Mil. IEH's Revenue for the
three
months ended in Mar. 2026 was $8.53 Mil. Therefore, IEH's Gross Margin % for the quarter that ended in Mar. 2026 was 20.92%.
The historical rank and industry rank for IEH's Gross Margin % or its related term are showing as below:
IEHC'
s Gross Margin % Range Over the Past 10 Years
Min: 3.87 Med: 26.02 Max: 42.35
Current: 18.87
During the past 13 years, the highestGross Margin % of IEH was 42.35%. The lowest was 3.87%. And the median was 26.02%.
IEHC's Gross Margin % is ranked worse than 63.63% of 2450
companies
in the Hardware industry
Industry Median: 24.53
vs IEHC: 18.87
IEH had a gross margin of 20.92% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for IEH was -0.40% per year.
IEH (OTCPK:IEHC) 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
IEH had a gross margin of 20.92% 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.
IEH Gross Margin % Related Terms
IEH Gross Margin % Historical Data
* Premium members only.
The historical data trend for IEH'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.
IEHC vs HOLO, WBX, DSWL: Gross Margin % Comparison
For the Electronic Components subindustry, IEH'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.
IEH Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, IEH's Gross Margin % distribution charts can be found below:
* The bar in red indicates where IEH'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.
IEH (IEHC) has a Gross Margin % of 20.92% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on IEH and its competitors. This is 20% below median its historical median of 26.02. Over the past decade, IEH's Gross Margin % has ranged from 3.87 to 42.35. According to the industry distribution chart, IEH ranks #1559 out of 2450 companies in the Hardware industry, placing it in the top 63.6%.
Is IEH's Gross Margin % too high?
IEH's current Gross Margin % of 20.92% is 20% below median its 10-year median of 26.02. Over the past 10 years, this metric has ranged from a low of 3.87 to a high of 42.35. The Hardware industry median Gross Margin % is 24.53. IEH's value of 20.92% is 14.7% below this industry median. Based on the distribution chart, IEH ranks #1559 out of 2450 companies in the Hardware industry, which is below the industry midpoint. Overall, IEH has a GF Score™ of 45/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does IEH's Gross Margin % compare to HOLO and WBX?
According to the Hardware industry distribution chart, IEH ranks #1559 out of 2450 companies for Gross Margin %. This places IEH in the lower half of its industry. The industry median Gross Margin % is 24.53. IEH's value of 20.92% is 14.7% below this benchmark. Historically, IEH's own Gross Margin % has ranged from 3.87 to 42.35 over the past decade. While the company's 10-year median is 26.02 vs. the industry median of 24.53, IEH 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 24.53, 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. IEH's current Gross Margin % of 20.92% is 14.7% 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 IEH 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. IEH's current Gross Margin % is 20.92%, which is 20% below median its own 10-year median of 26.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is IEH stock overvalued right now?
Based on GuruFocus' analysis, IEH (IEHC) is currently considered Significantly Overvalued. The stock's GF Value™ is $10.79, compared to a current price of $21.75 — trading 101.6% above its estimated fair value. The current Gross Margin % is 20.92%, which is 20% below median its 10-year median of 26.02 and 14.7% below the Hardware industry median of 24.53. IEH's overall GF Score™ is 45/100 with 3 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 IEH (IEHC), the current Gross Margin % is 20.92% 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 IEH (IEHC) Overvalued in 2026?
Based on GuruFocus' analysis, IEH stock appears to be overvalued.
The current stock price of $21.75 is trading 101.6% above its estimated GF Value™ of $10.79.
GuruFocus considers IEH to be Significantly Overvalued.
Key valuation signals for IEHC:
Gross Margin %: 20.92% (20% below median its 10-year median of 26.02)
GF Value™: $10.79 vs. price of $21.75 (101.6% above fair value)
Industry Position: 14.7% below the Hardware median (#1559 of 2450)
No single metric tells the full story. See the IEHC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
IEH Corp designs develops and manufactures printed circuit board (PCB) connectors, custom interconnectors, and contacts for high-performance applications with its Hyperboloid technology. The company supplies durable, reliable connectors for demanding environments. The company markets to companies in defense, aerospace, medical, space, and other industrial applications, in the United States, Canada, Europe, Southeast, and Central Asia, and the Mideast.
45GF Score
Get the complete analysis for IEHC
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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