RakonNZSE:RAK 31 Gross Margin % is 46.11% as of Sep. 2025, which is 4% above its 10-year median of 44.47. GuruFocus rates NZSE:RAK with a GF Score™ of 31/100 and a GF Value™ of NZ$0.79 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 2,996 Industrial Products companies, Rakon ranks better than 87.45% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Rakon's Gross Profit for the
six
months ended in Sep. 2025 was NZ$23.8 Mil. Rakon's Revenue for the
six
months ended in Sep. 2025 was NZ$51.5 Mil. Therefore, Rakon's Gross Margin % for the quarter that ended in Sep. 2025 was 46.11%.
The historical rank and industry rank for Rakon's Gross Margin % or its related term are showing as below:
NZSE:RAK'
s Gross Margin % Range Over the Past 10 Years
Min: 35.55 Med: 44.47 Max: 52.37
Current: 47.55
During the past 13 years, the highestGross Margin % of Rakon was 52.37%. The lowest was 35.55%. And the median was 44.47%.
NZSE:RAK's Gross Margin % is ranked better than 87.45% of 2996
companies
in the Industrial Products industry
Industry Median: 26.8
vs NZSE:RAK: 47.55
Rakon had a gross margin of 46.11% for the quarter that ended in Sep. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Rakon was -0.50% per year.
Rakon (NZSE:RAK) 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
Rakon had a gross margin of 46.11% for the quarter that ended in Sep. 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.
Rakon Gross Margin % Related Terms
Rakon Gross Margin % Historical Data
* Premium members only.
The historical data trend for Rakon'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.
NZSE:RAK vs VRT, BE, NVT: Gross Margin % Comparison
For the Electrical Equipment & Parts subindustry, Rakon'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.
Rakon Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Rakon's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Rakon'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.
Rakon (NZSE:RAK) has a Gross Margin % of 46.11% as of Sep. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Rakon and its competitors. This is near median its historical median of 44.47. Over the past decade, Rakon's Gross Margin % has ranged from 35.55 to 52.37. According to the industry distribution chart, Rakon ranks #376 out of 2996 companies in the Industrial Products industry, placing it in the top 12.6%.
Is Rakon's Gross Margin % too high?
Rakon's current Gross Margin % of 46.11% is near median its 10-year median of 44.47. Over the past 10 years, this metric has ranged from a low of 35.55 to a high of 52.37. The Industrial Products industry median Gross Margin % is 26.80. Rakon's value of 46.11% is 72.1% above this industry median. Based on the distribution chart, Rakon ranks #376 out of 2996 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Rakon has a GF Score™ of 31/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rakon's Gross Margin % compare to VRT and BE?
According to the Industrial Products industry distribution chart, Rakon ranks #376 out of 2996 companies for Gross Margin %. This places Rakon in the top 13% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 26.80. Rakon's value of 46.11% is 72.1% above this benchmark. Historically, Rakon's own Gross Margin % has ranged from 35.55 to 52.37 over the past decade. While the company's 10-year median is 44.47 vs. the industry median of 26.80, Rakon 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 26.80, based on 2,996 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. Rakon's current Gross Margin % of 46.11% is 72.1% 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 Rakon and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rakon's current Gross Margin % is 46.11%, which is near median its own 10-year median of 44.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rakon stock overvalued right now?
Based on GuruFocus' analysis, Rakon (NZSE:RAK) is currently considered Significantly Overvalued. The stock's GF Value™ is NZ$0.79, compared to a current price of NZ$1.55 — trading 96.2% above its estimated fair value. The current Gross Margin % is 46.11%, which is near median its 10-year median of 44.47 and 72.1% above the Industrial Products industry median of 26.80. Rakon's overall GF Score™ is 31/100 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 Rakon (NZSE:RAK), the current Gross Margin % is 46.11% as of Sep. 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 Rakon (NZSE:RAK) Overvalued in 2026?
Based on GuruFocus' analysis, Rakon stock appears to be overvalued.
The current stock price of NZ$1.55 is trading 96.2% above its estimated GF Value™ of NZ$0.79.
GuruFocus considers Rakon to be Significantly Overvalued.
Key valuation signals for NZSE:RAK:
Gross Margin %: 46.11% (near median its 10-year median of 44.47)
GF Value™: NZ$0.79 vs. price of NZ$1.55 (96.2% above fair value)
Industry Position: 72.1% above the Industrial Products median (#376 of 2996)
No single metric tells the full story. See the NZSE:RAK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rakon Ltd is engaged in the development of frequency control products and timing solutions for a wide range of applications. Its core markets are Telecommunications, Space & Defence, and Global Positioning. The company's product range consists of low stability Crystal Oscillators (XO), Voltage Controlled Crystal Oscillators (VCXOs), and crystal products, through to high volume precision Temperature Compensated Crystal Oscillators (TCXOs), Oven Controlled Crystal Oscillators (OCXOs), Digital Pulse Compression Sub-Systems (DPCSS), Surface Acoustic Wave (SAW) oscillators and specialized products. The company's geographical segments are Asia, North America, Europe, and Others.
31GF Score
Get the complete analysis for NZSE:RAK
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
NZSE:RAK has been successfully added to your 
