Advanced Energy IndustriesSTU:AVX -4.97%74 Gross Margin % is 39.31% as of Mar. 2026, which is 4% above its 10-year median of 37.97. GuruFocus rates STU:AVX with a GF Score™ of 74/100 and a GF Value™ of €120.10 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 2,997 Industrial Products companies, Advanced Energy Industries ranks better than 75.78% on this metric.
Advanced Energy Industries (STU:AVX) 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
Advanced Energy Industries had a gross margin of 39.31% 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.
Advanced Energy Industries Gross Margin % Related Terms
Advanced Energy Industries Gross Margin % Historical Data
* 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.
STU:AVX vs FPS, AYI, POWL: Gross Margin % Comparison
For the Electrical Equipment & Parts subindustry, Advanced Energy Industries'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.
Advanced Energy Industries Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Advanced Energy Industries's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Advanced Energy Industries'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.
Advanced Energy Industries (STU:AVX) has a Gross Margin % of 39.31% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Advanced Energy Industries and its competitors. This is near median its historical median of 37.97. Over the past decade, Advanced Energy Industries' Gross Margin % has ranged from 35.72 to 53.11. According to the industry distribution chart, Advanced Energy Industries ranks #726 out of 2997 companies in the Industrial Products industry, placing it in the top 24.2%.
Is Advanced Energy Industries' Gross Margin % too high?
Advanced Energy Industries' current Gross Margin % of 39.31% is near median its 10-year median of 37.97. Over the past 10 years, this metric has ranged from a low of 35.72 to a high of 53.11. The Industrial Products industry median Gross Margin % is 26.81. Advanced Energy Industries' value of 39.31% is 46.6% above this industry median. Based on the distribution chart, Advanced Energy Industries ranks #726 out of 2997 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Advanced Energy Industries has a GF Score™ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Advanced Energy Industries' Gross Margin % compare to FPS and AYI?
According to the Industrial Products industry distribution chart, Advanced Energy Industries ranks #726 out of 2997 companies for Gross Margin %. This places Advanced Energy Industries in the top 24% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 26.81. Advanced Energy Industries' value of 39.31% is 46.6% above this benchmark. Historically, Advanced Energy Industries' own Gross Margin % has ranged from 35.72 to 53.11 over the past decade. While the company's 10-year median is 37.97 vs. the industry median of 26.81, Advanced Energy Industries 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 26.81, based on 2,997 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. Advanced Energy Industries's current Gross Margin % of 39.31% is 46.6% 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 Advanced Energy Industries and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Advanced Energy Industries's current Gross Margin % is 39.31%, which is near median its own 10-year median of 37.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Advanced Energy Industries stock overvalued right now?
Based on GuruFocus' analysis, Advanced Energy Industries (STU:AVX) is currently considered Significantly Overvalued. The stock's GF Value™ is €120.10, compared to a current price of €311.60 — trading 159.5% above its estimated fair value. The current Gross Margin % is 39.31%, which is near median its 10-year median of 37.97 and 46.6% above the Industrial Products industry median of 26.81. Advanced Energy Industries' overall GF Score™ is 74/100 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 Advanced Energy Industries (STU:AVX), the current Gross Margin % is 39.31% 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 Advanced Energy Industries (STU:AVX) Overvalued in 2026?
Based on GuruFocus' analysis, Advanced Energy Industries stock appears to be overvalued.
The current stock price of €311.60 is trading 159.5% above its estimated GF Value™ of €120.10.
GuruFocus considers Advanced Energy Industries to be Significantly Overvalued.
Key valuation signals for STU:AVX:
Gross Margin %: 39.31% (near median its 10-year median of 37.97)
GF Value™: €120.10 vs. price of €311.60 (159.5% above fair value)
Industry Position: 46.6% above the Industrial Products median (#726 of 2997)
No single metric tells the full story. See the STU:AVX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Advanced Energy Industries Inc provides precision power conversion, measurement, and control solutions. The company designs, manufactures, sells, and services power electronics conversion products that transform raw electrical power into controllable, usable power for complex equipment. It operates in one reporting segment, Power Electronics Conversion Products, serving the Semiconductor Equipment, Data Center Computing, Industrial and Medical, and Telecom and Networking markets. Its products include Plasma Power Products, AC-DC Power Supply Units, DC-DC Converters, High Voltage solutions, SCR Power Controllers, and Sense and Measurement solutions. The company operates in the United States, Asia, Europe, and other regions.
74GF Score
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