SPARQ SystemsSPRQF 35 Gross Margin % is 8.15% as of Mar. 2026. GuruFocus rates SPRQF with a GF Score™ of 35/100 and a GF Value™ of $0.81 (Fairly Valued). The stock has 4 warning signs investors should review. Among 3,003 Industrial Products companies, SPARQ Systems ranks worse than 96.77% on this metric.
The historical rank and industry rank for SPARQ Systems's Gross Margin % or its related term are showing as below:
SPRQF'
s Gross Margin % Range Over the Past 10 Years
Min: -9600 Med: -36.55 Max: 0.88
Current: 0.88
During the past 8 years, the highestGross Margin % of SPARQ Systems was 0.88%. The lowest was -9600.00%. And the median was -36.55%.
SPRQF's Gross Margin % is ranked worse than 96.77% of 3003
companies
in the Industrial Products industry
Industry Median: 26.79
vs SPRQF: 0.88
SPARQ Systems had a gross margin of 8.15% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for SPARQ Systems was 0.00% per year.
SPARQ Systems (OTCPK:SPRQF) 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
SPARQ Systems had a gross margin of 8.15% for the quarter that ended in Mar. 2026 => No sustainable 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.
SPARQ Systems Gross Margin % Related Terms
SPARQ Systems Gross Margin % Historical Data
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The historical data trend for SPARQ Systems'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.
For the Electrical Equipment & Parts subindustry, SPARQ Systems'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.
SPARQ Systems Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, SPARQ Systems's Gross Margin % distribution charts can be found below:
* The bar in red indicates where SPARQ Systems'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.
SPARQ Systems (SPRQF) has a Gross Margin % of 8.15% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on SPARQ Systems and its competitors. According to the industry distribution chart, SPARQ Systems ranks #2906 out of 3003 companies in the Industrial Products industry, placing it in the top 96.8%.
Is SPARQ Systems' Gross Margin % too high?
SPARQ Systems' current Gross Margin % is 8.15%. The Industrial Products industry median Gross Margin % is 26.79. SPARQ Systems' value of 8.15% is 69.6% below this industry median. Based on the distribution chart, SPARQ Systems ranks #2906 out of 3003 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, SPARQ Systems has a GF Score™ of 35/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does SPARQ Systems' Gross Margin % compare to VRT and BE?
According to the Industrial Products industry distribution chart, SPARQ Systems ranks #2906 out of 3003 companies for Gross Margin %. This places SPARQ Systems in the lower half of its industry. The industry median Gross Margin % is 26.79. SPARQ Systems' value of 8.15% is 69.6% below this benchmark. 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. SPARQ Systems's current Gross Margin % of 8.15% is 69.6% 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 SPARQ Systems 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. SPARQ Systems's current Gross Margin % is 8.15%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SPARQ Systems stock overvalued right now?
Based on GuruFocus' analysis, SPARQ Systems (SPRQF) is currently considered Fairly Valued. The stock's GF Value™ is $0.81, compared to a current price of $0.86 — trading 5.9% above its estimated fair value. The current Gross Margin % is 8.15% and 69.6% below the Industrial Products industry median of 26.79. SPARQ Systems' overall GF Score™ is 35/100 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 SPARQ Systems (SPRQF), the current Gross Margin % is 8.15% 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 SPARQ Systems (SPRQF) Overvalued in 2026?
Based on GuruFocus' analysis, SPARQ Systems stock appears to be overvalued.
The current stock price of $0.86 is trading 5.9% above its estimated GF Value™ of $0.81.
GuruFocus considers SPARQ Systems to be Fairly Valued.
Key valuation signals for SPRQF:
Gross Margin %: 8.15%
GF Value™: $0.81 vs. price of $0.86 (5.9% above fair value)
Industry Position: 69.6% below the Industrial Products median (#2906 of 3003)
No single metric tells the full story. See the SPRQF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SPARQ Systems Inc designs and manufactures next generation single-phase microinverters for residential and commercial solar electric applications. The company has developed a proprietary photovoltaic (PV) solution called the Quad; the Quad inverter optimizes four PV modules with a single microinverter, simplifying design and installation, and lowering cost for solar power installations when compared to existing market offerings. Its products include Quad2, Quad3, Q1200 Microinverter, SparqLinq, SparqVu, and SparqSync. The company derives revenue from the sale of hardware, including microinverters and their associated peripherals.
35GF Score
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