Nortech SystemsNSYS -1.50%54 Gross Margin % is 15.51% as of Mar. 2026, which is 24% above its 10-year median of 12.46. GuruFocus rates NSYS with a GF Score™ of 54/100 and a GF Value™ of $9.25 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 806 Medical Devices & Instruments companies, Nortech Systems ranks worse than 92.06% on this metric.
The historical rank and industry rank for Nortech Systems's Gross Margin % or its related term are showing as below:
NSYS'
s Gross Margin % Range Over the Past 10 Years
Min: 9.28 Med: 12.46 Max: 16.58
Current: 16.12
During the past 13 years, the highestGross Margin % of Nortech Systems was 16.58%. The lowest was 9.28%. And the median was 12.46%.
NSYS's Gross Margin % is ranked worse than 92.06% of 806
companies
in the Medical Devices & Instruments industry
Industry Median: 51.985
vs NSYS: 16.12
Nortech Systems had a gross margin of 15.51% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Nortech Systems was 7.10% per year.
Nortech Systems (NAS:NSYS) 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
Nortech Systems had a gross margin of 15.51% for the quarter that ended in Mar. 2026 => 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.
Nortech Systems Gross Margin % Related Terms
Nortech Systems Gross Margin % Historical Data
* Premium members only.
The historical data trend for Nortech Systems'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.
NSYS vs MYO, NSPR, TELA: Gross Margin % Comparison
For the Medical Devices subindustry, Nortech Systems'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.
Nortech Systems Gross Margin % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Nortech Systems's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nortech Systems'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.
Nortech Systems (NSYS) has a Gross Margin % of 15.51% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Nortech Systems and its competitors. This is 24% above median its historical median of 12.46. Over the past decade, Nortech Systems' Gross Margin % has ranged from 9.28 to 16.58. According to the industry distribution chart, Nortech Systems ranks #742 out of 806 companies in the Medical Devices & Instruments industry, placing it in the top 92.1%.
Is Nortech Systems' Gross Margin % too high?
Nortech Systems' current Gross Margin % of 15.51% is 24% above median its 10-year median of 12.46. Over the past 10 years, this metric has ranged from a low of 9.28 to a high of 16.58. The Medical Devices & Instruments industry median Gross Margin % is 51.99. Nortech Systems' value of 15.51% is 70.2% below this industry median. Based on the distribution chart, Nortech Systems ranks #742 out of 806 companies in the Medical Devices & Instruments industry, which is in the bottom quartile relative to peers. Overall, Nortech Systems has a GF Score™ of 54/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nortech Systems' Gross Margin % compare to MYO and NSPR?
According to the Medical Devices & Instruments industry distribution chart, Nortech Systems ranks #742 out of 806 companies for Gross Margin %. This places Nortech Systems in the lower half of its industry. The industry median Gross Margin % is 51.99. Nortech Systems' value of 15.51% is 70.2% below this benchmark. Historically, Nortech Systems' own Gross Margin % has ranged from 9.28 to 16.58 over the past decade. While the company's 10-year median is 12.46 vs. the industry median of 51.99, Nortech Systems 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 Medical Devices & Instruments company?
The median Gross Margin % among Medical Devices & Instruments companies is 51.99, based on 806 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. Nortech Systems's current Gross Margin % of 15.51% is 70.2% 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 Nortech Systems and its competitors. For the Medical Devices & Instruments industry, the median Gross Margin % is 51.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nortech Systems's current Gross Margin % is 15.51%, which is 24% above median its own 10-year median of 12.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nortech Systems stock overvalued right now?
Based on GuruFocus' analysis, Nortech Systems (NSYS) is currently considered Significantly Overvalued. The stock's GF Value™ is $9.25, compared to a current price of $16.15 — trading 74.6% above its estimated fair value. The current Gross Margin % is 15.51%, which is 24% above median its 10-year median of 12.46 and 70.2% below the Medical Devices & Instruments industry median of 51.99. Nortech Systems' overall GF Score™ is 54/100 with 8 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 Nortech Systems (NSYS), the current Gross Margin % is 15.51% 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 Nortech Systems (NSYS) Overvalued in 2026?
Based on GuruFocus' analysis, Nortech Systems stock appears to be overvalued.
The current stock price of $16.15 is trading 74.6% above its estimated GF Value™ of $9.25.
GuruFocus considers Nortech Systems to be Significantly Overvalued.
Key valuation signals for NSYS:
Gross Margin %: 15.51% (24% above median its 10-year median of 12.46)
GF Value™: $9.25 vs. price of $16.15 (74.6% above fair value)
Industry Position: 70.2% below the Medical Devices & Instruments median (#742 of 806)
No single metric tells the full story. See the NSYS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nortech Systems Inc is a United States-based electronic manufacturing services company. It offers value-added engineering, technical, and manufacturing services and support, including project management, design, testing, prototyping, manufacturing, supply chain management, and post-market services. The company's manufacturing and engineering services include complete medical devices, printed circuit board assemblies, wire and cable assemblies, and complex higher-level electro-mechanical assemblies. It operates in the Medical, Aerospace, Defense, and Industrial markets, with key revenue coming from medical-related markets.
54GF Score
Get the complete analysis for NSYS
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NSYS has been successfully added to your 
