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Precision OpticsPOCI -3.60%73 Gross Margin % is 23.62% as of Mar. 2026, which is 25% below its 10-year median of 31.31. GuruFocus rates POCI with a GF Score™ of 73/100 and a GF Value™ of $6.34 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 806 Medical Devices & Instruments companies, Precision Optics ranks worse than 93.18% 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
Precision Optics had a gross margin of 23.62% for the quarter that ended in Mar. 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.
Precision Optics Gross Margin % Related Terms
Precision Optics Gross Margin % Historical Data
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The historical data trend for Precision Optics'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.
POCI vs DXR, NEPH, MLSS: Gross Margin % Comparison
For the Medical Instruments & Supplies subindustry, Precision Optics'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.
Precision Optics Gross Margin % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Precision Optics's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Precision Optics'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.
Precision Optics (POCI) has a Gross Margin % of 23.62% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Precision Optics and its competitors. This is 25% below median its historical median of 31.31. Over the past decade, Precision Optics' Gross Margin % has ranged from 13.85 to 36.75. According to the industry distribution chart, Precision Optics ranks #751 out of 806 companies in the Medical Devices & Instruments industry, placing it in the top 93.2%.
Is Precision Optics' Gross Margin % too high?
Precision Optics' current Gross Margin % of 23.62% is 25% below median its 10-year median of 31.31. Over the past 10 years, this metric has ranged from a low of 13.85 to a high of 36.75. The Medical Devices & Instruments industry median Gross Margin % is 52.05. Precision Optics' value of 23.62% is 54.6% below this industry median. Based on the distribution chart, Precision Optics ranks #751 out of 806 companies in the Medical Devices & Instruments industry, which is in the bottom quartile relative to peers. Overall, Precision Optics has a GF Score™ of 73/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Precision Optics' Gross Margin % compare to DXR and NEPH?
According to the Medical Devices & Instruments industry distribution chart, Precision Optics ranks #751 out of 806 companies for Gross Margin %. This places Precision Optics in the lower half of its industry. The industry median Gross Margin % is 52.05. Precision Optics' value of 23.62% is 54.6% below this benchmark. Historically, Precision Optics' own Gross Margin % has ranged from 13.85 to 36.75 over the past decade. While the company's 10-year median is 31.31 vs. the industry median of 52.05, Precision Optics 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 Medical Devices & Instruments company?
The median Gross Margin % among Medical Devices & Instruments companies is 52.05, based on 806 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. Precision Optics's current Gross Margin % of 23.62% is 54.6% 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 Precision Optics and its competitors. For the Medical Devices & Instruments industry, the median Gross Margin % is 52.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Precision Optics's current Gross Margin % is 23.62%, which is 25% below median its own 10-year median of 31.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Precision Optics stock overvalued right now?
Based on GuruFocus' analysis, Precision Optics (POCI) is currently considered Modestly Undervalued. The stock's GF Value™ is $6.34, compared to a current price of $4.55 — trading 28.2% below its estimated fair value. The current Gross Margin % is 23.62%, which is 25% below median its 10-year median of 31.31 and 54.6% below the Medical Devices & Instruments industry median of 52.05. Precision Optics' overall GF Score™ is 73/100 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 Precision Optics (POCI), the current Gross Margin % is 23.62% 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 Precision Optics (POCI) Overvalued in 2026?
Based on GuruFocus' analysis, Precision Optics stock appears to be undervalued.
The current stock price of $4.55 is trading 28.2% below its estimated GF Value™ of $6.34.
GuruFocus considers Precision Optics to be Modestly Undervalued.
Key valuation signals for POCI:
Gross Margin %: 23.62% (25% below median its 10-year median of 31.31)
GF Value™: $6.34 vs. price of $4.55 (28.2% below fair value)
Industry Position: 54.6% below the Medical Devices & Instruments median (#751 of 806)
No single metric tells the full story. See the POCI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Precision Optics Corp Inc is engaged in designing, developing, and manufacturing advanced optical instruments. It manufactures medical products such as endoscopes and endocouplers which incorporate various optical technologies for use in a variety of minimally invasive surgical and diagnostic procedures. The company also produces endoscopes for various applications as well as designs and manufactures custom optical medical devices to satisfy customers' specific requirements. In addition, the company manufactures and sells components and assemblies specially designed for industrial and military use. The company earns the majority of its revenue from the United States.
73GF Score
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