Observe Medical ASASTU:OM50 +0.23%30 Gross Margin % is 23.26% as of Dec. 2025, which is 22% below its 10-year median of 29.88. GuruFocus rates STU:OM50 with a GF Score™ of 30/100 and a GF Value™ of €0.02. The stock has 5 warning signs investors should review. Among 805 Medical Devices & Instruments companies, Observe Medical ASA ranks worse than 86.34% on this metric.
Observe Medical ASA gross margin has been in long-term decline. The average rate of decline per year is -13.7%.
The historical rank and industry rank for Observe Medical ASA's Gross Margin % or its related term are showing as below:
STU:OM50'
s Gross Margin % Range Over the Past 10 Years
Min: -594.44 Med: 29.88 Max: 548.11
Current: 24.99
During the past 10 years, the highestGross Margin % of Observe Medical ASA was 548.11%. The lowest was -594.44%. And the median was 29.88%.
STU:OM50's Gross Margin % is ranked worse than 86.34% of 805
companies
in the Medical Devices & Instruments industry
Industry Median: 52.03
vs STU:OM50: 24.99
Observe Medical ASA had a gross margin of 23.26% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Observe Medical ASA was -13.70% per year.
Observe Medical ASA (STU:OM50) 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
Observe Medical ASA had a gross margin of 23.26% for the quarter that ended in Dec. 2025 => 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.
Observe Medical ASA Gross Margin % Related Terms
Observe Medical ASA Gross Margin % Historical Data
* Premium members only.
The historical data trend for Observe Medical ASA'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:OM50 vs ABT, SYK, MDT: Gross Margin % Comparison
For the Medical Devices subindustry, Observe Medical ASA'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.
Observe Medical ASA Gross Margin % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Observe Medical ASA's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Observe Medical ASA'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.
Observe Medical ASA (STU:OM50) has a Gross Margin % of 23.26% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Observe Medical ASA and its competitors. This is 22% below median its historical median of 29.88. According to the industry distribution chart, Observe Medical ASA ranks #695 out of 805 companies in the Medical Devices & Instruments industry, placing it in the top 86.3%.
Is Observe Medical ASA's Gross Margin % too high?
Observe Medical ASA's current Gross Margin % of 23.26% is 22% below median its 10-year median of 29.88. The Medical Devices & Instruments industry median Gross Margin % is 52.03. Observe Medical ASA's value of 23.26% is 55.3% below this industry median. Based on the distribution chart, Observe Medical ASA ranks #695 out of 805 companies in the Medical Devices & Instruments industry, which is in the bottom quartile relative to peers. Overall, Observe Medical ASA has a GF Score™ of 30/100, reflecting its overall financial health beyond just this single metric.
How does Observe Medical ASA's Gross Margin % compare to ABT and SYK?
According to the Medical Devices & Instruments industry distribution chart, Observe Medical ASA ranks #695 out of 805 companies for Gross Margin %. This places Observe Medical ASA in the lower half of its industry. The industry median Gross Margin % is 52.03. Observe Medical ASA's value of 23.26% is 55.3% below this benchmark. While the company's 10-year median is 29.88 vs. the industry median of 52.03, Observe Medical ASA has consistently been below 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 Medical Devices & Instruments company?
The median Gross Margin % among Medical Devices & Instruments companies is 52.03, based on 805 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. Observe Medical ASA's current Gross Margin % of 23.26% is 55.3% 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 Observe Medical ASA and its competitors. For the Medical Devices & Instruments industry, the median Gross Margin % is 52.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Observe Medical ASA's current Gross Margin % is 23.26%, which is 22% below median its own 10-year median of 29.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Observe Medical ASA stock overvalued right now?
Observe Medical ASA (STU:OM50) has a current Gross Margin % of 23.26%. The stock's GF Value™ is €0.02, compared to a current price of €0.09 — trading 342% above its estimated fair value. The current Gross Margin % is 23.26%, which is 22% below median its 10-year median of 29.88 and 55.3% below the Medical Devices & Instruments industry median of 52.03. Observe Medical ASA's overall GF Score™ is 30/100 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 Observe Medical ASA (STU:OM50), the current Gross Margin % is 23.26% as of Dec. 2025. 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 Observe Medical ASA (STU:OM50) Overvalued in 2026?
Based on GuruFocus' analysis, Observe Medical ASA stock appears to be overvalued.
The current stock price of €0.09 is trading 342% above its estimated GF Value™ of €0.02.
Key valuation signals for STU:OM50:
Gross Margin %: 23.26% (22% below median its 10-year median of 29.88)
GF Value™: €0.02 vs. price of €0.09 (342% above fair value)
Industry Position: 55.3% below the Medical Devices & Instruments median (#695 of 805)
No single metric tells the full story. See the STU:OM50 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Observe Medical ASA is a Nordic medtech company focused on the development, commercialization, and scaling of medical technologies for the healthcare markets. The company's portfolio of proprietary products consists of: Sippi, a CE marked digitalized system for urine output measurement, the UnoMeter portfolio consisting of manual urine output measurement products and solutions for measuring intra-abdominal pressure. The company operates internationally through subsidiaries in Norway, Sweden and Denmark.
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