OndasONDS +2.08%68 Gross Margin % is 49.20% as of Mar. 2026, which is 22% above its 10-year median of 40.20. GuruFocus rates ONDS with a GF Score™ of 68/100 and a GF Value™ of $3.92 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 2,450 Hardware companies, Ondas ranks better than 82.65% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Ondas's Gross Profit for the
three
months ended in Mar. 2026 was $24.66 Mil. Ondas's Revenue for the
three
months ended in Mar. 2026 was $50.12 Mil. Therefore, Ondas's Gross Margin % for the quarter that ended in Mar. 2026 was 49.20%.
Warning Sign:
Ondas Inc gross margin has been in long-term decline. The average rate of decline per year is -17.7%.
The historical rank and industry rank for Ondas's Gross Margin % or its related term are showing as below:
ONDS'
s Gross Margin % Range Over the Past 10 Years
Min: -200 Med: 40.2 Max: 79.47
Current: 44.85
During the past 11 years, the highestGross Margin % of Ondas was 79.47%. The lowest was -200.00%. And the median was 40.20%.
ONDS's Gross Margin % is ranked better than 82.65% of 2450
companies
in the Hardware industry
Industry Median: 24.53
vs ONDS: 44.85
Ondas had a gross margin of 49.20% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Ondas was -17.70% per year.
Ondas (NAS:ONDS) 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
Ondas had a gross margin of 49.20% for the quarter that ended in Mar. 2026 => 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.
Ondas Gross Margin % Related Terms
Ondas Gross Margin % Historical Data
* Premium members only.
The historical data trend for Ondas'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.
ONDS vs BDC, EXTR, VISN: Gross Margin % Comparison
For the Communication Equipment subindustry, Ondas'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.
Ondas Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Ondas's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ondas'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.
Ondas (ONDS) has a Gross Margin % of 49.20% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Ondas and its competitors. This is 22% above median its historical median of 40.20. According to the industry distribution chart, Ondas ranks #425 out of 2450 companies in the Hardware industry, placing it in the top 17.3%.
Is Ondas' Gross Margin % too high?
Ondas' current Gross Margin % of 49.20% is 22% above median its 10-year median of 40.20. The Hardware industry median Gross Margin % is 24.53. Ondas' value of 49.20% is 100.6% above this industry median. Based on the distribution chart, Ondas ranks #425 out of 2450 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Ondas has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ondas' Gross Margin % compare to BDC and EXTR?
According to the Hardware industry distribution chart, Ondas ranks #425 out of 2450 companies for Gross Margin %. This places Ondas in the top 17% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 24.53. Ondas' value of 49.20% is 100.6% above this benchmark. While the company's 10-year median is 40.20 vs. the industry median of 24.53, Ondas 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 24.53, based on 2,450 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. Ondas's current Gross Margin % of 49.20% is 100.6% 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 Ondas and its competitors. For the Hardware industry, the median Gross Margin % is 24.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ondas's current Gross Margin % is 49.20%, which is 22% above median its own 10-year median of 40.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ondas stock overvalued right now?
Based on GuruFocus' analysis, Ondas (ONDS) is currently considered Significantly Overvalued. The stock's GF Value™ is $3.92, compared to a current price of $7.77 — trading 98.2% above its estimated fair value. The current Gross Margin % is 49.20%, which is 22% above median its 10-year median of 40.20 and 100.6% above the Hardware industry median of 24.53. Ondas' overall GF Score™ is 68/100 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 Ondas (ONDS), the current Gross Margin % is 49.20% 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 Ondas (ONDS) Overvalued in 2026?
Based on GuruFocus' analysis, Ondas stock appears to be overvalued.
The current stock price of $7.77 is trading 98.2% above its estimated GF Value™ of $3.92.
GuruFocus considers Ondas to be Significantly Overvalued.
Key valuation signals for ONDS:
Gross Margin %: 49.20% (22% above median its 10-year median of 40.20)
GF Value™: $3.92 vs. price of $7.77 (98.2% above fair value)
Industry Position: 100.6% above the Hardware median (#425 of 2450)
No single metric tells the full story. See the ONDS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ondas Inc designs, develops, manufactures, sells, and supports FullMAX Software Defined Radio (SDR) technology in the United States, Israel, and India. The company operates in two business segments namely Ondas Networks and Ondas Autonomous Systems. The company generates maximum revenue from Ondas Autonomous Systems through the sales of the Optimus system and separately priced support, maintenance, and ancillary services related to the sale of the Optimus system. Geographically, the company operates in Israel, Germany, United Arab Emirates, United States, and Other Countries. It derives maximum revenue from Israel.
68GF Score
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