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
Luminar Technologies had a gross margin of -389.25% for the quarter that ended in Dec. 2025 => No sustainable 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.
Luminar Technologies Gross Margin % Related Terms
Luminar Technologies Gross Margin % Historical Data
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The historical data trend for Luminar Technologies'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.
MEX:LAZR vs FFLO, OMTK, ORLY: Gross Margin % Comparison
For the Auto Parts subindustry, Luminar Technologies'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.
Luminar Technologies Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Luminar Technologies's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Luminar Technologies'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.
Luminar Technologies (MEX:LAZR) has a Gross Margin % of -389.25% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Luminar Technologies and its competitors.
Is Luminar Technologies' Gross Margin % too high?
Luminar Technologies' current Gross Margin % is -389.25%. Overall, Luminar Technologies has a GF Score™ of 33/100, reflecting its overall financial health beyond just this single metric.
How does Luminar Technologies' Gross Margin % compare to FFLO and OMTK?
Luminar Technologies' Gross Margin % of -389.25% can be compared against companies in the Vehicles & Parts industry. The industry median Gross Margin % is 19.80. 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 Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.80, based on 1,308 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. 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 Luminar Technologies and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Luminar Technologies's current Gross Margin % is -389.25%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Luminar Technologies stock overvalued right now?
Luminar Technologies (MEX:LAZR) has a current Gross Margin % of -389.25%. The stock's GF Value™ is MXN1,255.61, compared to a current price of MXN3.89 — trading 99.7% below its estimated fair value. The current Gross Margin % is -389.25%. Luminar Technologies' overall GF Score™ is 33/100 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 Luminar Technologies (MEX:LAZR), the current Gross Margin % is -389.25% 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 Luminar Technologies (MEX:LAZR) Overvalued in 2026?
Based on GuruFocus' analysis, Luminar Technologies stock appears to be undervalued.
The current stock price of MXN3.89 is trading 99.7% below its estimated GF Value™ of MXN1,255.61.
Key valuation signals for MEX:LAZR:
Gross Margin %: -389.25%
GF Value™: MXN1,255.61 vs. price of MXN3.89 (99.7% below fair value)
No single metric tells the full story. See the MEX:LAZR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Luminar Technologies Inc is a technology firm specializing in Light Detection and Ranging (LiDAR) hardware and software solutions for automotive and related applications. It develops LiDAR systems, semiconductor components, and software in-house for use in passenger and commercial vehicles, as well as other markets, to support safety and autonomous driving functions. The company's business activities are organized in two operating segments: (i) Autonomy Solutions and (ii) Advanced Technologies and Services. The majority of revenue is derived from the Autonomy Solutions segment, which is engaged in the design, manufacturing, and sale of LiDAR sensors catering mainly to OEMs in the automotive, commercial vehicle, robo-taxi and adjacent industries.
33GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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