Calnex SolutionsSTU:CSO -0.68%53 Gross Margin % is 75.62% as of Mar. 2026, which is 1% above its 10-year median of 74.97. GuruFocus rates STU:CSO with a GF Score™ of 53/100 and a GF Value™ of €0.70 (Fairly Valued). The stock has 4 warning signs investors should review. Among 2,450 Hardware companies, Calnex Solutions ranks better than 98% 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
Calnex Solutions had a gross margin of 75.62% 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.
Calnex Solutions Gross Margin % Related Terms
Calnex Solutions Gross Margin % Historical Data
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The historical data trend for Calnex Solutions'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.
STU:CSO vs CSCO, CIEN, MSI: Gross Margin % Comparison
For the Communication Equipment subindustry, Calnex Solutions'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.
Calnex Solutions Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Calnex Solutions's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Calnex Solutions'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.
Calnex Solutions (STU:CSO) has a Gross Margin % of 75.62% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Calnex Solutions and its competitors. This is near median its historical median of 74.97. Over the past decade, Calnex Solutions' Gross Margin % has ranged from 72.40 to 78.29. According to the industry distribution chart, Calnex Solutions ranks #49 out of 2450 companies in the Hardware industry, placing it in the top 2%.
Is Calnex Solutions' Gross Margin % too high?
Calnex Solutions' current Gross Margin % of 75.62% is near median its 10-year median of 74.97. Over the past 10 years, this metric has ranged from a low of 72.40 to a high of 78.29. The Hardware industry median Gross Margin % is 24.53. Calnex Solutions' value of 75.62% is 208.3% above this industry median. Based on the distribution chart, Calnex Solutions ranks #49 out of 2450 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Calnex Solutions has a GF Score™ of 53/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Calnex Solutions' Gross Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Calnex Solutions ranks #49 out of 2450 companies for Gross Margin %. This places Calnex Solutions in the top 2% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 24.53. Calnex Solutions' value of 75.62% is 208.3% above this benchmark. Historically, Calnex Solutions' own Gross Margin % has ranged from 72.40 to 78.29 over the past decade. While the company's 10-year median is 74.97 vs. the industry median of 24.53, Calnex Solutions 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 24.53, based on 2,450 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. Calnex Solutions's current Gross Margin % of 75.62% is 208.3% 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 Calnex Solutions and its competitors. For the Hardware industry, the median Gross Margin % is 24.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Calnex Solutions's current Gross Margin % is 75.62%, which is near median its own 10-year median of 74.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Calnex Solutions stock overvalued right now?
Based on GuruFocus' analysis, Calnex Solutions (STU:CSO) is currently considered Fairly Valued. The stock's GF Value™ is €0.70, compared to a current price of €0.74 — trading 5% above its estimated fair value. The current Gross Margin % is 75.62%, which is near median its 10-year median of 74.97 and 208.3% above the Hardware industry median of 24.53. Calnex Solutions' overall GF Score™ is 53/100 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 Calnex Solutions (STU:CSO), the current Gross Margin % is 75.62% 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 Calnex Solutions (STU:CSO) Overvalued in 2026?
Based on GuruFocus' analysis, Calnex Solutions stock appears to be overvalued.
The current stock price of €0.74 is trading 5% above its estimated GF Value™ of €0.70.
GuruFocus considers Calnex Solutions to be Fairly Valued.
Key valuation signals for STU:CSO:
Gross Margin %: 75.62% (near median its 10-year median of 74.97)
GF Value™: €0.70 vs. price of €0.74 (5% above fair value)
Industry Position: 208.3% above the Hardware median (#49 of 2450)
No single metric tells the full story. See the STU:CSO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Calnex Solutions PLC is a provider of test and measurement solutions for the telecommunications sector. It designs, produces, and markets test instrumentation and solutions for network synchronization and network emulation. The company offers its equipment to network operators, network providers, systems suppliers, laboratories, and network infrastructures. The company operates in North Asia, Americas and Rest of the world, out of which it derives maximum revenue from Rest of the World.
53GF Score
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