XP PowerLSE:XPP +1.80%59 Gross Margin % is 42.11% as of Dec. 2025, which is 7% below its 10-year median of 45.07. GuruFocus rates LSE:XPP with a GF Score™ of 59/100 and a GF Value™ of £8.43 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 2,998 Industrial Products companies, XP Power ranks better than 80.72% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. XP Power's Gross Profit for the
six
months ended in Dec. 2025 was £50.2 Mil. XP Power's Revenue for the
six
months ended in Dec. 2025 was £119.2 Mil. Therefore, XP Power's Gross Margin % for the quarter that ended in Dec. 2025 was 42.11%.
Warning Sign:
XP Power Ltd gross margin has been in long-term decline. The average rate of decline per year is -2.9%.
The historical rank and industry rank for XP Power's Gross Margin % or its related term are showing as below:
LSE:XPP'
s Gross Margin % Range Over the Past 10 Years
Min: 39.22 Med: 45.07 Max: 47.77
Current: 41.85
During the past 13 years, the highestGross Margin % of XP Power was 47.77%. The lowest was 39.22%. And the median was 45.07%.
LSE:XPP's Gross Margin % is ranked better than 80.72% of 2998
companies
in the Industrial Products industry
Industry Median: 26.84
vs LSE:XPP: 41.85
XP Power had a gross margin of 42.11% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for XP Power was -2.90% per year.
XP Power (LSE:XPP) 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
XP Power had a gross margin of 42.11% 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.
XP Power Gross Margin % Related Terms
XP Power Gross Margin % Historical Data
* Premium members only.
The historical data trend for XP Power'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.
For the Electrical Equipment & Parts subindustry, XP Power'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.
XP Power Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, XP Power's Gross Margin % distribution charts can be found below:
* The bar in red indicates where XP Power'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.
XP Power (LSE:XPP) has a Gross Margin % of 42.11% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on XP Power and its competitors. This is near median its historical median of 45.07. Over the past decade, XP Power's Gross Margin % has ranged from 39.22 to 47.77. According to the industry distribution chart, XP Power ranks #578 out of 2998 companies in the Industrial Products industry, placing it in the top 19.3%.
Is XP Power's Gross Margin % too high?
XP Power's current Gross Margin % of 42.11% is near median its 10-year median of 45.07. Over the past 10 years, this metric has ranged from a low of 39.22 to a high of 47.77. The Industrial Products industry median Gross Margin % is 26.84. XP Power's value of 42.11% is 56.9% above this industry median. Based on the distribution chart, XP Power ranks #578 out of 2998 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, XP Power has a GF Score™ of 59/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does XP Power's Gross Margin % compare to VRT and BE?
According to the Industrial Products industry distribution chart, XP Power ranks #578 out of 2998 companies for Gross Margin %. This places XP Power in the top 19% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 26.84. XP Power's value of 42.11% is 56.9% above this benchmark. Historically, XP Power's own Gross Margin % has ranged from 39.22 to 47.77 over the past decade. While the company's 10-year median is 45.07 vs. the industry median of 26.84, XP Power 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 26.84, based on 2,998 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. XP Power's current Gross Margin % of 42.11% is 56.9% 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 XP Power and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. XP Power's current Gross Margin % is 42.11%, which is near median its own 10-year median of 45.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is XP Power stock overvalued right now?
Based on GuruFocus' analysis, XP Power (LSE:XPP) is currently considered Significantly Overvalued. The stock's GF Value™ is £8.43, compared to a current price of £18.12 — trading 114.9% above its estimated fair value. The current Gross Margin % is 42.11%, which is near median its 10-year median of 45.07 and 56.9% above the Industrial Products industry median of 26.84. XP Power's overall GF Score™ is 59/100 with 7 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 XP Power (LSE:XPP), the current Gross Margin % is 42.11% 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 XP Power (LSE:XPP) Overvalued in 2026?
Based on GuruFocus' analysis, XP Power stock appears to be overvalued.
The current stock price of £18.12 is trading 114.9% above its estimated GF Value™ of £8.43.
GuruFocus considers XP Power to be Significantly Overvalued.
Key valuation signals for LSE:XPP:
Gross Margin %: 42.11% (near median its 10-year median of 45.07)
GF Value™: £8.43 vs. price of £18.12 (114.9% above fair value)
Industry Position: 56.9% above the Industrial Products median (#578 of 2998)
No single metric tells the full story. See the LSE:XPP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
XP Power Ltd is a developer and manufacturer of critical power control components. The company provides power solutions, including alternating current (AC)-direct current (DC) power supplies, and DC-DC converters. Its products serve markets in multiple sectors and across market regions such as Semiconductor Manufacturing Equipment, Industrial Technology, Custom Power, and Healthcare. Its product categories include AC to DC power supplies, DC-DC converters, High-voltage power supplies, Radio Frequency (RF) power systems, and EMI Filters, among others. The geographical segments of the company are North America, which generates the maximum revenue, Europe, and Asia.
59GF Score
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