Optical CableOCC -2.98%46 Gross Margin % is 34.19% as of Apr. 2026, which is 14% above its 10-year median of 30.11. GuruFocus rates OCC with a GF Score™ of 46/100 and a GF Value™ of $3.22 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 2,449 Hardware companies, Optical Cable ranks better than 65.5% 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
Optical Cable had a gross margin of 34.19% 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.
Optical Cable Gross Margin % Related Terms
Optical Cable Gross Margin % Historical Data
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The historical data trend for Optical Cable'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.
OCC vs AMPG, WATT, AIRG: Gross Margin % Comparison
For the Communication Equipment subindustry, Optical Cable'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.
Optical Cable Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Optical Cable's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Optical Cable'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.
Optical Cable (OCC) has a Gross Margin % of 34.19% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Optical Cable and its competitors. This is 14% above median its historical median of 30.11. Over the past decade, Optical Cable's Gross Margin % has ranged from 25.48 to 32.66. According to the industry distribution chart, Optical Cable ranks #845 out of 2449 companies in the Hardware industry, placing it in the top 34.5%.
Is Optical Cable's Gross Margin % too high?
Optical Cable's current Gross Margin % of 34.19% is 14% above median its 10-year median of 30.11. Over the past 10 years, this metric has ranged from a low of 25.48 to a high of 32.66. The Hardware industry median Gross Margin % is 24.52. Optical Cable's value of 34.19% is 39.4% above this industry median. Based on the distribution chart, Optical Cable ranks #845 out of 2449 companies in the Hardware industry, which is above the industry midpoint. Overall, Optical Cable has a GF Score™ of 46/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Optical Cable's Gross Margin % compare to AMPG and WATT?
According to the Hardware industry distribution chart, Optical Cable ranks #845 out of 2449 companies for Gross Margin %. This puts Optical Cable in the upper half of its industry. The industry median Gross Margin % is 24.52. Optical Cable's value of 34.19% is 39.4% above this benchmark. Historically, Optical Cable's own Gross Margin % has ranged from 25.48 to 32.66 over the past decade. While the company's 10-year median is 30.11 vs. the industry median of 24.52, Optical Cable 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 Hardware company?
The median Gross Margin % among Hardware companies is 24.52, based on 2,449 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. Optical Cable's current Gross Margin % of 34.19% is 39.4% 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 Optical Cable and its competitors. For the Hardware industry, the median Gross Margin % is 24.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Optical Cable's current Gross Margin % is 34.19%, which is 14% above median its own 10-year median of 30.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Optical Cable stock overvalued right now?
Based on GuruFocus' analysis, Optical Cable (OCC) is currently considered Significantly Overvalued. The stock's GF Value™ is $3.22, compared to a current price of $18.25 — trading 466.8% above its estimated fair value. The current Gross Margin % is 34.19%, which is 14% above median its 10-year median of 30.11 and 39.4% above the Hardware industry median of 24.52. Optical Cable's overall GF Score™ is 46/100 with 1 warning sign 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 Optical Cable (OCC), the current Gross Margin % is 34.19% 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 Optical Cable (OCC) Overvalued in 2026?
Based on GuruFocus' analysis, Optical Cable stock appears to be overvalued.
The current stock price of $18.25 is trading 466.8% above its estimated GF Value™ of $3.22.
GuruFocus considers Optical Cable to be Significantly Overvalued.
Key valuation signals for OCC:
Gross Margin %: 34.19% (14% above median its 10-year median of 30.11)
GF Value™: $3.22 vs. price of $18.25 (466.8% above fair value)
Industry Position: 39.4% above the Hardware median (#845 of 2449)
No single metric tells the full story. See the OCC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Optical Cable Corp manufactures a broad range of fiber optic and copper data communication cabling and connectivity solutions for the enterprise, wireless carrier, and specialty markets. The Company offers high quality products that operate as a system solution or integrate with other components, including fiber, copper, hybrid cabling, cabinets, racks, enclosures, and deployable solutions for enterprise networks, data centers, residential, campus, Passive Optical LAN installations, and customized applications in military, industrial, mining, petrochemical, renewable energy, and broadcast industries. It operates a single reportable segment covering the design, development, manufacture, and marketing of its cabling and connectivity solutions.
46GF Score
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