AeroVironmentLTS:0HAL +15.07%82 Gross Margin % is 31.58% as of Apr. 2026, which is 22% below its 10-year median of 40.49. GuruFocus rates LTS:0HAL with a GF Score™ of 82/100 and a GF Value™ of $249.93 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 342 Aerospace & Defense companies, AeroVironment ranks worse than 54.09% 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
AeroVironment had a gross margin of 31.58% for the quarter that ended in Apr. 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.
AeroVironment Gross Margin % Related Terms
AeroVironment Gross Margin % Historical Data
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The historical data trend for AeroVironment'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.
LTS:0HAL vs HXL, DPC, MRCY: Gross Margin % Comparison
For the Aerospace & Defense subindustry, AeroVironment'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.
AeroVironment Gross Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, AeroVironment's Gross Margin % distribution charts can be found below:
* The bar in red indicates where AeroVironment'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.
AeroVironment (LTS:0HAL) has a Gross Margin % of 31.58% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on AeroVironment and its competitors. This is 22% below median its historical median of 40.49. Over the past decade, AeroVironment's Gross Margin % has ranged from 24.74 to 45.17. According to the industry distribution chart, AeroVironment ranks #185 out of 342 companies in the Aerospace & Defense industry, placing it in the top 54.1%.
Is AeroVironment's Gross Margin % too high?
AeroVironment's current Gross Margin % of 31.58% is 22% below median its 10-year median of 40.49. Over the past 10 years, this metric has ranged from a low of 24.74 to a high of 45.17. The Aerospace & Defense industry median Gross Margin % is 26.65. AeroVironment's value of 31.58% is 18.5% above this industry median. Based on the distribution chart, AeroVironment ranks #185 out of 342 companies in the Aerospace & Defense industry, which is below the industry midpoint. Overall, AeroVironment has a GF Score™ of 82/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does AeroVironment's Gross Margin % compare to HXL and DPC?
According to the Aerospace & Defense industry distribution chart, AeroVironment ranks #185 out of 342 companies for Gross Margin %. This places AeroVironment in the lower half of its industry. The industry median Gross Margin % is 26.65. AeroVironment's value of 31.58% is 18.5% above this benchmark. Historically, AeroVironment's own Gross Margin % has ranged from 24.74 to 45.17 over the past decade. While the company's 10-year median is 40.49 vs. the industry median of 26.65, AeroVironment 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 Aerospace & Defense company?
The median Gross Margin % among Aerospace & Defense companies is 26.65, based on 342 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. AeroVironment's current Gross Margin % of 31.58% is 18.5% 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 AeroVironment and its competitors. For the Aerospace & Defense industry, the median Gross Margin % is 26.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AeroVironment's current Gross Margin % is 31.58%, which is 22% below median its own 10-year median of 40.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AeroVironment stock overvalued right now?
Based on GuruFocus' analysis, AeroVironment (LTS:0HAL) is currently considered Possible Value Trap. The stock's GF Value™ is $249.93, compared to a current price of $163.92 — trading 34.4% below its estimated fair value. The current Gross Margin % is 31.58%, which is 22% below median its 10-year median of 40.49 and 18.5% above the Aerospace & Defense industry median of 26.65. AeroVironment's overall GF Score™ is 82/100 with 5 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 AeroVironment (LTS:0HAL), the current Gross Margin % is 31.58% as of Apr. 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 AeroVironment (LTS:0HAL) Overvalued in 2026?
Based on GuruFocus' analysis, AeroVironment stock appears to be undervalued.
The current stock price of $163.92 is trading 34.4% below its estimated GF Value™ of $249.93.
GuruFocus considers AeroVironment to be Possible Value Trap.
Key valuation signals for LTS:0HAL:
Gross Margin %: 31.58% (22% below median its 10-year median of 40.49)
GF Value™: $249.93 vs. price of $163.92 (34.4% below fair value)
Industry Position: 18.5% above the Aerospace & Defense median (#185 of 342)
No single metric tells the full story. See the LTS:0HAL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AeroVironment Inc supplies unmanned aircraft systems, tactical missile systems, high-altitude pseudo-satellites, and other related services to government agencies within the United States Department of Defense as well as the United States allied international governments. The systems can help with security, surveillance, or sensing, and provide eyes in the sky without needing an actual person, or driver in the sky. The company is a defense technology provider delivering integrated capabilities across air, land, sea, space, and cyber. It develops and deploy autonomous systems, precision strike systems, counter-UAS technologies, space-based platforms, directed energy systems, and cyber and electronic warfare capabilities. Company operates in three segments: UxS, LMS, MW.
82GF Score
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