Comtech TelecommunicationsSTU:CC6 -2.78%54 Gross Margin % is 34.02% as of Apr. 2026, which is 8% below its 10-year median of 36.81. GuruFocus rates STU:CC6 with a GF Score™ of 54/100 and a GF Value™ of €2.41 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 2,454 Hardware companies, Comtech Telecommunications ranks better than 66.01% 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
Comtech Telecommunications had a gross margin of 34.02% for the quarter that ended in Apr. 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.
Comtech Telecommunications Gross Margin % Related Terms
Comtech Telecommunications 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:CC6 vs WSTL, AIRG, FIEE: Gross Margin % Comparison
For the Communication Equipment subindustry, Comtech Telecommunications'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.
Comtech Telecommunications Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Comtech Telecommunications's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Comtech Telecommunications'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.
Comtech Telecommunications (STU:CC6) has a Gross Margin % of 34.02% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Comtech Telecommunications and its competitors. This is near median its historical median of 36.81. Over the past decade, Comtech Telecommunications' Gross Margin % has ranged from 25.60 to 41.66. According to the industry distribution chart, Comtech Telecommunications ranks #834 out of 2454 companies in the Hardware industry, placing it in the top 34%.
Is Comtech Telecommunications' Gross Margin % too high?
Comtech Telecommunications' current Gross Margin % of 34.02% is near median its 10-year median of 36.81. Over the past 10 years, this metric has ranged from a low of 25.60 to a high of 41.66. The Hardware industry median Gross Margin % is 24.57. Comtech Telecommunications' value of 34.02% is 38.5% above this industry median. Based on the distribution chart, Comtech Telecommunications ranks #834 out of 2454 companies in the Hardware industry, which is above the industry midpoint. Overall, Comtech Telecommunications has a GF Score™ of 54/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Comtech Telecommunications' Gross Margin % compare to WSTL and AIRG?
According to the Hardware industry distribution chart, Comtech Telecommunications ranks #834 out of 2454 companies for Gross Margin %. This puts Comtech Telecommunications in the upper half of its industry. The industry median Gross Margin % is 24.57. Comtech Telecommunications' value of 34.02% is 38.5% above this benchmark. Historically, Comtech Telecommunications' own Gross Margin % has ranged from 25.60 to 41.66 over the past decade. While the company's 10-year median is 36.81 vs. the industry median of 24.57, Comtech Telecommunications 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 Hardware company?
The median Gross Margin % among Hardware companies is 24.57, based on 2,454 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. Comtech Telecommunications's current Gross Margin % of 34.02% is 38.5% 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 Comtech Telecommunications and its competitors. For the Hardware industry, the median Gross Margin % is 24.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Comtech Telecommunications's current Gross Margin % is 34.02%, which is near median its own 10-year median of 36.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Comtech Telecommunications stock overvalued right now?
Based on GuruFocus' analysis, Comtech Telecommunications (STU:CC6) is currently considered Modestly Undervalued. The stock's GF Value™ is €2.41, compared to a current price of €1.75 — trading 27.4% below its estimated fair value. The current Gross Margin % is 34.02%, which is near median its 10-year median of 36.81 and 38.5% above the Hardware industry median of 24.57. Comtech Telecommunications' overall GF Score™ is 54/100 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 Comtech Telecommunications (STU:CC6), the current Gross Margin % is 34.02% as of Apr. 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 Comtech Telecommunications (STU:CC6) Overvalued in 2026?
Based on GuruFocus' analysis, Comtech Telecommunications stock appears to be undervalued.
The current stock price of €1.75 is trading 27.4% below its estimated GF Value™ of €2.41.
GuruFocus considers Comtech Telecommunications to be Modestly Undervalued.
Key valuation signals for STU:CC6:
Gross Margin %: 34.02% (near median its 10-year median of 36.81)
GF Value™: €2.41 vs. price of €1.75 (27.4% below fair value)
Industry Position: 38.5% above the Hardware median (#834 of 2454)
No single metric tells the full story. See the STU:CC6 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Comtech Telecommunications Corp is a provider of communications technology and solutions. It operates in two reportable business segments: Satellite and Space Communications and Allerium. The company's Satellite and Space Communications segment, which generates maximum revenue, is organized into four technology areas: satellite modem and amplifier technologies, troposcatter technologies, cybersecurity training, and space components. This segment designs and manufactures modems, amplifiers, traveling wave tube amplifiers, frequency converters, and offers other associated software and services. The Allerium segment provides next-generation 911 (NG-911) infrastructure and solutions for state and local governments and carriers. Geographically, the company derives its key revenue from the USA.
54GF Score
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