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Solitron DevicesSODI +1.85%66 Gross Margin % is 45.35% as of May. 2026, which is 67% above its 10-year median of 27.18. GuruFocus rates SODI with a GF Score™ of 66/100 and a GF Value™ of $28.20 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,011 Semiconductors companies, Solitron Devices ranks better than 62.91% 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
Solitron Devices had a gross margin of 45.35% for the quarter that ended in May. 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.
Solitron Devices Gross Margin % Related Terms
Solitron Devices Gross Margin % Historical Data
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The historical data trend for Solitron Devices'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.
SODI vs RBCN, GSTX, SCIA: Gross Margin % Comparison
For the Semiconductor Equipment & Materials subindustry, Solitron Devices'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.
Solitron Devices Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Solitron Devices's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Solitron Devices'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.
Solitron Devices (SODI) has a Gross Margin % of 45.35% as of May. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Solitron Devices and its competitors. This is 67% above median its historical median of 27.18. Over the past decade, Solitron Devices' Gross Margin % has ranged from 14.83 to 39.07. According to the industry distribution chart, Solitron Devices ranks #375 out of 1011 companies in the Semiconductors industry, placing it in the top 37.1%.
Is Solitron Devices' Gross Margin % too high?
Solitron Devices' current Gross Margin % of 45.35% is 67% above median its 10-year median of 27.18. Over the past 10 years, this metric has ranged from a low of 14.83 to a high of 39.07. The Semiconductors industry median Gross Margin % is 29.61. Solitron Devices' value of 45.35% is 53.2% above this industry median. Based on the distribution chart, Solitron Devices ranks #375 out of 1011 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Solitron Devices has a GF Score™ of 66/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Solitron Devices' Gross Margin % compare to RBCN and GSTX?
According to the Semiconductors industry distribution chart, Solitron Devices ranks #375 out of 1011 companies for Gross Margin %. This puts Solitron Devices in the upper half of its industry. The industry median Gross Margin % is 29.61. Solitron Devices' value of 45.35% is 53.2% above this benchmark. Historically, Solitron Devices' own Gross Margin % has ranged from 14.83 to 39.07 over the past decade. While the company's 10-year median is 27.18 vs. the industry median of 29.61, Solitron Devices 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 Semiconductors company?
The median Gross Margin % among Semiconductors companies is 29.61, based on 1,011 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. Solitron Devices's current Gross Margin % of 45.35% is 53.2% 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 Solitron Devices and its competitors. For the Semiconductors industry, the median Gross Margin % is 29.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Solitron Devices's current Gross Margin % is 45.35%, which is 67% above median its own 10-year median of 27.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Solitron Devices stock overvalued right now?
Based on GuruFocus' analysis, Solitron Devices (SODI) is currently considered Fairly Valued. The stock's GF Value™ is $28.20, compared to a current price of $30.35 — trading 7.6% above its estimated fair value. The current Gross Margin % is 45.35%, which is 67% above median its 10-year median of 27.18 and 53.2% above the Semiconductors industry median of 29.61. Solitron Devices' overall GF Score™ is 66/100 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 Solitron Devices (SODI), the current Gross Margin % is 45.35% as of May. 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 Solitron Devices (SODI) Overvalued in 2026?
Based on GuruFocus' analysis, Solitron Devices stock appears to be overvalued.
The current stock price of $30.35 is trading 7.6% above its estimated GF Value™ of $28.20.
GuruFocus considers Solitron Devices to be Fairly Valued.
Key valuation signals for SODI:
Gross Margin %: 45.35% (67% above median its 10-year median of 27.18)
GF Value™: $28.20 vs. price of $30.35 (7.6% above fair value)
Industry Position: 53.2% above the Semiconductors median (#375 of 1011)
No single metric tells the full story. See the SODI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Solitron Devices Inc designs, develops, manufactures, and markets solid-state semiconductor components and related devices mainly for the military and aerospace markets. The company also manufactures a large variety of bipolar and metal oxide semiconductor (MOS) power transistors, power and control hybrids, junction and power MOS field-effect transistors (Power MOSFETS), field-effect transistors, and other related products. The company derives the majority of its revenues from its business operations in the United States, while it also holds a presence in Canada, Latin America, Europe and Australia.
66GF Score
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