Polar PowerPOLA -7.78%45 Gross Margin % is 65.68% as of Mar. 2026, which is 297% above its 10-year median of 16.53. GuruFocus rates POLA with a GF Score™ of 45/100 and a GF Value™ of $1.14 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 3,003 Industrial Products companies, Polar Power ranks worse than 98.9% on this metric.
The historical rank and industry rank for Polar Power's Gross Margin % or its related term are showing as below:
POLA'
s Gross Margin % Range Over the Past 10 Years
Min: -62.26 Med: 16.53 Max: 44.66
Current: -37.09
During the past 12 years, the highestGross Margin % of Polar Power was 44.66%. The lowest was -62.26%. And the median was 16.53%.
POLA's Gross Margin % is ranked worse than 98.9% of 3003
companies
in the Industrial Products industry
Industry Median: 26.79
vs POLA: -37.09
Polar Power had a gross margin of 65.68% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Polar Power was 0.00% per year.
Polar Power (NAS:POLA) 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
Polar Power had a gross margin of 65.68% 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.
Polar Power Gross Margin % Related Terms
Polar Power Gross Margin % Historical Data
* Premium members only.
The historical data trend for Polar Power'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.
POLA vs XPON, PWDY, TOGI: Gross Margin % Comparison
For the Electrical Equipment & Parts subindustry, Polar Power'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.
Polar Power Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Polar Power's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Polar Power'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.
Polar Power (POLA) has a Gross Margin % of 65.68% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Polar Power and its competitors. This is 297% above median its historical median of 16.53. According to the industry distribution chart, Polar Power ranks #2970 out of 3003 companies in the Industrial Products industry, placing it in the top 98.9%.
Is Polar Power's Gross Margin % too high?
Polar Power's current Gross Margin % of 65.68% is 297% above median its 10-year median of 16.53. The Industrial Products industry median Gross Margin % is 26.79. Polar Power's value of 65.68% is 145.2% above this industry median. Based on the distribution chart, Polar Power ranks #2970 out of 3003 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, Polar Power has a GF Score™ of 45/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Polar Power's Gross Margin % compare to XPON and PWDY?
According to the Industrial Products industry distribution chart, Polar Power ranks #2970 out of 3003 companies for Gross Margin %. This places Polar Power in the lower half of its industry. The industry median Gross Margin % is 26.79. Polar Power's value of 65.68% is 145.2% above this benchmark. While the company's 10-year median is 16.53 vs. the industry median of 26.79, Polar Power 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.79, based on 3,003 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. Polar Power's current Gross Margin % of 65.68% is 145.2% 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 Polar Power and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Polar Power's current Gross Margin % is 65.68%, which is 297% above median its own 10-year median of 16.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Polar Power stock overvalued right now?
Based on GuruFocus' analysis, Polar Power (POLA) is currently considered Significantly Overvalued. The stock's GF Value™ is $1.14, compared to a current price of $1.66 — trading 45.6% above its estimated fair value. The current Gross Margin % is 65.68%, which is 297% above median its 10-year median of 16.53 and 145.2% above the Industrial Products industry median of 26.79. Polar Power's overall GF Score™ is 45/100 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 Polar Power (POLA), the current Gross Margin % is 65.68% 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 Polar Power (POLA) Overvalued in 2026?
Based on GuruFocus' analysis, Polar Power stock appears to be overvalued.
The current stock price of $1.66 is trading 45.6% above its estimated GF Value™ of $1.14.
GuruFocus considers Polar Power to be Significantly Overvalued.
Key valuation signals for POLA:
Gross Margin %: 65.68% (297% above median its 10-year median of 16.53)
GF Value™: $1.14 vs. price of $1.66 (45.6% above fair value)
Industry Position: 145.2% above the Industrial Products median (#2970 of 3003)
No single metric tells the full story. See the POLA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Polar Power Inc is engaged in designing, manufacturing, and selling DC power generators, renewable energy, and cooling systems for applications in the telecommunications market and, to a lesser extent, in other markets, including military, electric vehicle, marine, and industrial. The company's products include DC generators, backup DC generators, hybrid power systems, Li-Ion battery systems, Marine DC generators, and others. The company's geographical presence is in the United States, Canada, Australia and South Pacific Islands, Other Asia Pacific, Europe and Middle East, United Kingdom, and South Africa.
45GF Score
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