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Luda Technology GroupLUD +0.23%20 Gross Margin % is 27.29% as of Dec. 2025, which is 31% above its 10-year median of 20.90. GuruFocus rates LUD with a GF Score™ of 20/100. The stock has 5 warning signs investors should review. Among 595 Steel companies, Luda Technology Group ranks better than 64.37% on this metric.
Luda Technology Group (AMEX:LUD) 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
Luda Technology Group had a gross margin of 27.29% for the quarter that ended in Dec. 2025 => 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.
Luda Technology Group Gross Margin % Related Terms
Luda Technology Group Gross Margin % Historical Data
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The historical data trend for Luda Technology Group'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 Steel subindustry, Luda Technology Group'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.
Luda Technology Group Gross Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Luda Technology Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Luda Technology Group'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.
Luda Technology Group (LUD) has a Gross Margin % of 27.29% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Luda Technology Group and its competitors. This is 31% above median its historical median of 20.90. Over the past decade, Luda Technology Group's Gross Margin % has ranged from 17.65 to 25.42. According to the industry distribution chart, Luda Technology Group ranks #212 out of 595 companies in the Steel industry, placing it in the top 35.6%.
Is Luda Technology Group's Gross Margin % too high?
Luda Technology Group's current Gross Margin % of 27.29% is 31% above median its 10-year median of 20.90. Over the past 10 years, this metric has ranged from a low of 17.65 to a high of 25.42. The Steel industry median Gross Margin % is 12.76. Luda Technology Group's value of 27.29% is 113.9% above this industry median. Based on the distribution chart, Luda Technology Group ranks #212 out of 595 companies in the Steel industry, which is above the industry midpoint. Overall, Luda Technology Group has a GF Score™ of 20/100, reflecting its overall financial health beyond just this single metric.
How does Luda Technology Group's Gross Margin % compare to HLP and ZKIN?
According to the Steel industry distribution chart, Luda Technology Group ranks #212 out of 595 companies for Gross Margin %. This puts Luda Technology Group in the upper half of its industry. The industry median Gross Margin % is 12.76. Luda Technology Group's value of 27.29% is 113.9% above this benchmark. Historically, Luda Technology Group's own Gross Margin % has ranged from 17.65 to 25.42 over the past decade. While the company's 10-year median is 20.90 vs. the industry median of 12.76, Luda Technology Group 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 Steel company?
The median Gross Margin % among Steel companies is 12.76, based on 595 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. Luda Technology Group's current Gross Margin % of 27.29% is 113.9% 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 Luda Technology Group and its competitors. For the Steel industry, the median Gross Margin % is 12.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Luda Technology Group's current Gross Margin % is 27.29%, which is 31% above median its own 10-year median of 20.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Luda Technology Group stock overvalued right now?
Luda Technology Group (LUD) has a current Gross Margin % of 27.29%. The current Gross Margin % is 27.29%, which is 31% above median its 10-year median of 20.90 and 113.9% above the Steel industry median of 12.76. Luda Technology Group's overall GF Score™ is 20/100 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 Luda Technology Group (LUD), the current Gross Margin % is 27.29% 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.
Luda Technology Group Ltd is a company principally engaged in the manufacture and sale of stainless steel and carbon steel flanges and fittings, and in the trading of steel pipes, valves, and other steel tubing products. The company has two operating segments: Hong Kong Trading and PRC Manufacturing. Hong Kong Trading mainly engages in the trading of flange and fitting products sourced from suppliers, and this operating segment is conducted through Luda HK. PRC Manufacturing represents the trading and manufacturing of the in-house flanges and fittings products. It generates the majority of its revenue from the PRC Manufacturing segment. Geographically, it generates the majority of its revenue from the People's Republic of China (PRC).
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