Rolling Optics Holding AB (OSTO:RO) 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
Rolling Optics Holding AB had a gross margin of 88.54% for the quarter that ended in Dec. 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.
Rolling Optics Holding AB Gross Margin % Related Terms
Rolling Optics Holding AB 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.
OSTO:RO vs GRMN, COHR, KEYS: Gross Margin % Comparison
For the Scientific & Technical Instruments subindustry, Rolling Optics Holding AB'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.
Rolling Optics Holding AB Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Rolling Optics Holding AB's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Rolling Optics Holding AB'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.
Rolling Optics Holding AB (OSTO:RO) has a Gross Margin % of 88.54% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Rolling Optics Holding AB and its competitors. This is 22% above median its historical median of 72.76. Over the past decade, Rolling Optics Holding AB's Gross Margin % has ranged from 68.10 to 92.95.
Is Rolling Optics Holding AB's Gross Margin % too high?
Rolling Optics Holding AB's current Gross Margin % of 88.54% is 22% above median its 10-year median of 72.76. Over the past 10 years, this metric has ranged from a low of 68.10 to a high of 92.95. The Hardware industry median Gross Margin % is 24.53. Rolling Optics Holding AB's value of 88.54% is 260.9% above this industry median. Overall, Rolling Optics Holding AB has a GF Score™ of 30/100, reflecting its overall financial health beyond just this single metric.
How does Rolling Optics Holding AB's Gross Margin % compare to GRMN and COHR?
Rolling Optics Holding AB's Gross Margin % of 88.54% can be compared against companies in the Hardware industry. The industry median Gross Margin % is 24.53. Rolling Optics Holding AB's value of 88.54% is 260.9% above this benchmark. Historically, Rolling Optics Holding AB's own Gross Margin % has ranged from 68.10 to 92.95 over the past decade. While the company's 10-year median is 72.76 vs. the industry median of 24.53, Rolling Optics Holding AB 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. Rolling Optics Holding AB's current Gross Margin % of 88.54% is 260.9% 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 Rolling Optics Holding AB 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. Rolling Optics Holding AB's current Gross Margin % is 88.54%, which is 22% above median its own 10-year median of 72.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rolling Optics Holding AB stock overvalued right now?
Rolling Optics Holding AB (OSTO:RO) has a current Gross Margin % of 88.54%. The stock's GF Value™ is kr0.78, compared to a current price of kr0.23 — trading 71.2% below its estimated fair value. The current Gross Margin % is 88.54%, which is 22% above median its 10-year median of 72.76 and 260.9% above the Hardware industry median of 24.53. Rolling Optics Holding AB's overall GF Score™ is 30/100 with 4 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 Rolling Optics Holding AB (OSTO:RO), the current Gross Margin % is 88.54% as of Dec. 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 Rolling Optics Holding AB (OSTO:RO) Overvalued in 2026?
Based on GuruFocus' analysis, Rolling Optics Holding AB stock appears to be undervalued.
The current stock price of kr0.23 is trading 71.2% below its estimated GF Value™ of kr0.78.
Key valuation signals for OSTO:RO:
Gross Margin %: 88.54% (22% above median its 10-year median of 72.76)
GF Value™: kr0.78 vs. price of kr0.23 (71.2% below fair value)
Industry Position: 260.9% above the Hardware median
No single metric tells the full story. See the OSTO:RO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rolling Optics Holding AB is engaged in the business of supplying micro optical security materials and anti-counterfeit solutions for brand protection. The company operates in two areas - Brand Security, which protects companies and brands from counterfeits and High Security, which includes bank notes, ID cards and passports.
30GF Score
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