Ostin Technology Group Co (NAS:OST) 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
Ostin Technology Group Co had a gross margin of 8.32% 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.
Ostin Technology Group Co Gross Margin % Related Terms
Ostin Technology Group Co Gross Margin % Historical Data
* 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.
OST vs MTEK, IEHC, DAIO: Gross Margin % Comparison
For the Electronic Components subindustry, Ostin Technology Group Co'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.
Ostin Technology Group Co Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Ostin Technology Group Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ostin Technology Group Co'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.
Ostin Technology Group Co (OST) has a Gross Margin % of 8.32% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Ostin Technology Group Co and its competitors. This is near median its historical median of 8.27. Over the past decade, Ostin Technology Group Co's Gross Margin % has ranged from 3.57 to 11.96.
Is Ostin Technology Group Co's Gross Margin % too high?
Ostin Technology Group Co's current Gross Margin % of 8.32% is near median its 10-year median of 8.27. Over the past 10 years, this metric has ranged from a low of 3.57 to a high of 11.96. The Hardware industry median Gross Margin % is 24.53. Ostin Technology Group Co's value of 8.32% is 66.1% below this industry median. Overall, Ostin Technology Group Co has a GF Score™ of 20/100, reflecting its overall financial health beyond just this single metric.
How does Ostin Technology Group Co's Gross Margin % compare to MTEK and IEHC?
Ostin Technology Group Co's Gross Margin % of 8.32% can be compared against companies in the Hardware industry. The industry median Gross Margin % is 24.53. Ostin Technology Group Co's value of 8.32% is 66.1% below this benchmark. Historically, Ostin Technology Group Co's own Gross Margin % has ranged from 3.57 to 11.96 over the past decade. While the company's 10-year median is 8.27 vs. the industry median of 24.53, Ostin Technology Group Co 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 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. Ostin Technology Group Co's current Gross Margin % of 8.32% is 66.1% 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 Ostin Technology Group Co 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. Ostin Technology Group Co's current Gross Margin % is 8.32%, which is near median its own 10-year median of 8.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ostin Technology Group Co stock overvalued right now?
Ostin Technology Group Co (OST) has a current Gross Margin % of 8.32%. The stock's GF Value™ is $1.94, compared to a current price of $1.70 — trading 12.6% below its estimated fair value. The current Gross Margin % is 8.32%, which is near median its 10-year median of 8.27 and 66.1% below the Hardware industry median of 24.53. Ostin Technology Group Co's overall GF Score™ is 20/100 with 7 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 Ostin Technology Group Co (OST), the current Gross Margin % is 8.32% 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 Ostin Technology Group Co (OST) Overvalued in 2026?
Based on GuruFocus' analysis, Ostin Technology Group Co stock appears to be undervalued.
The current stock price of $1.70 is trading 12.6% below its estimated GF Value™ of $1.94.
Key valuation signals for OST:
Gross Margin %: 8.32% (near median its 10-year median of 8.27)
GF Value™: $1.94 vs. price of $1.70 (12.6% below fair value)
Industry Position: 66.1% below the Hardware median
No single metric tells the full story. See the OST stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ostin Technology Group Co Ltd is a holding company. The company, along with its subsidiaries, is engaged in the business of designing, developing and manufacturing TFT-LCD modules and polarizers in a wide range of sizes and customized sizes. Its display modules are mainly used in consumer electronics, commercial LCD displays and automotive displays. The company also manufactures polarizers used in the TFT-LCD display modules and protective films for the OLED display panel. It manufactures two categories of products: display modules and polarizers. Geographically, it generates the majority of revenue from Mainland China and the rest from Hong Kong, Taiwan and other countries.
20GF Score
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