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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
OwletOWLT -2.31%59 Gross Margin % is 64.44% as of Jun. 2026, which is 37% above its 10-year median of 46.91. GuruFocus rates OWLT with a GF Score™ of 59/100 and a GF Value™ of $3.60 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 804 Medical Devices & Instruments companies, Owlet ranks better than 54.48% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Owlet's Gross Profit for the
three
months ended in Jun. 2026 was $21.8 Mil. Owlet's Revenue for the
three
months ended in Jun. 2026 was $33.9 Mil. Therefore, Owlet's Gross Margin % for the quarter that ended in Jun. 2026 was 64.44%.
The historical rank and industry rank for Owlet's Gross Margin % or its related term are showing as below:
OWLT'
s Gross Margin % Range Over the Past 10 Years
Min: 33.69 Med: 46.91 Max: 54.75
Current: 54.75
During the past 6 years, the highestGross Margin % of Owlet was 54.75%. The lowest was 33.69%. And the median was 46.91%.
OWLT's Gross Margin % is ranked better than 54.48% of 804
companies
in the Medical Devices & Instruments industry
Industry Median: 52.375
vs OWLT: 54.75
Owlet had a gross margin of 64.44% for the quarter that ended in Jun. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Owlet was 2.30% per year.
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
Owlet had a gross margin of 64.44% for the quarter that ended in Jun. 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.
Owlet Gross Margin % Related Terms
Owlet Gross Margin % Historical Data
* Premium members only.
The historical data trend for Owlet'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.
OWLT vs RCEL, APYX, INGN: Gross Margin % Comparison
For the Medical Devices subindustry, Owlet'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.
Owlet Gross Margin % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Owlet's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Owlet'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.
Owlet (OWLT) has a Gross Margin % of 64.44% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Owlet and its competitors. This is 37% above median its historical median of 46.91. Over the past decade, Owlet's Gross Margin % has ranged from 33.69 to 54.75. According to the industry distribution chart, Owlet ranks #366 out of 804 companies in the Medical Devices & Instruments industry, placing it in the top 45.5%.
Is Owlet's Gross Margin % too high?
Owlet's current Gross Margin % of 64.44% is 37% above median its 10-year median of 46.91. Over the past 10 years, this metric has ranged from a low of 33.69 to a high of 54.75. The Medical Devices & Instruments industry median Gross Margin % is 52.38. Owlet's value of 64.44% is 23% above this industry median. Based on the distribution chart, Owlet ranks #366 out of 804 companies in the Medical Devices & Instruments industry, which is above the industry midpoint. Overall, Owlet has a GF Score™ of 59/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Owlet's Gross Margin % compare to RCEL and APYX?
According to the Medical Devices & Instruments industry distribution chart, Owlet ranks #366 out of 804 companies for Gross Margin %. This puts Owlet in the upper half of its industry. The industry median Gross Margin % is 52.38. Owlet's value of 64.44% is 23% above this benchmark. Historically, Owlet's own Gross Margin % has ranged from 33.69 to 54.75 over the past decade. While the company's 10-year median is 46.91 vs. the industry median of 52.38, Owlet 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 Medical Devices & Instruments company?
The median Gross Margin % among Medical Devices & Instruments companies is 52.38, based on 804 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. Owlet's current Gross Margin % of 64.44% is 23% 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 Owlet and its competitors. For the Medical Devices & Instruments industry, the median Gross Margin % is 52.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Owlet's current Gross Margin % is 64.44%, which is 37% above median its own 10-year median of 46.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Owlet stock overvalued right now?
Based on GuruFocus' analysis, Owlet (OWLT) is currently considered Significantly Overvalued. The stock's GF Value™ is $3.60, compared to a current price of $5.08 — trading 41.1% above its estimated fair value. The current Gross Margin % is 64.44%, which is 37% above median its 10-year median of 46.91 and 23% above the Medical Devices & Instruments industry median of 52.38. Owlet's overall GF Score™ is 59/100 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 Owlet (OWLT), the current Gross Margin % is 64.44% as of Jun. 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 Owlet (OWLT) Overvalued in 2026?
Based on GuruFocus' analysis, Owlet stock appears to be overvalued.
The current stock price of $5.08 is trading 41.1% above its estimated GF Value™ of $3.60.
GuruFocus considers Owlet to be Significantly Overvalued.
Key valuation signals for OWLT:
Gross Margin %: 64.44% (37% above median its 10-year median of 46.91)
GF Value™: $3.60 vs. price of $5.08 (41.1% above fair value)
Industry Position: 23% above the Medical Devices & Instruments median (#366 of 804)
No single metric tells the full story. See the OWLT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Owlet Inc is engaged in providing a digital parenting platform that aims to give parents real-time data and insights to help parents feel more calm and confident. Its diversified portfolio of products includes Owlet Smart Sock, the first baby monitor to track an infant's oxygen levels, heart rate, and sleep trends; the Owlet Cam, which turns any smartphone into a baby monitor with high-definition clarity; the Owlet Monitor Duo, which offers the intelligence of the Owlet Smart Sock paired with the Owlet Cam; and Owlet Dream Lab, an interactive online program designed to be a parent's guide to building healthy sleep habits for their infants.
59GF Score
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