Valdor Technology International (STU:VZA) 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
Valdor Technology International had a gross margin of 7.69% for the quarter that ended in Dec. 2025 => 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.
Valdor Technology International Gross Margin % Related Terms
Valdor Technology International 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.
Valdor Technology International Gross Margin % Chart
STU:VZA vs CSCO, CIEN, MSI: Gross Margin % Comparison
For the Communication Equipment subindustry, Valdor Technology International'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.
Valdor Technology International Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Valdor Technology International's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Valdor Technology International'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.
Valdor Technology International (STU:VZA) has a Gross Margin % of 7.69% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Valdor Technology International and its competitors. This is 10% below median its historical median of 8.56. According to the industry distribution chart, Valdor Technology International ranks #2382 out of 2450 companies in the Hardware industry, placing it in the top 97.2%.
Is Valdor Technology International's Gross Margin % too high?
Valdor Technology International's current Gross Margin % of 7.69% is 10% below median its 10-year median of 8.56. The Hardware industry median Gross Margin % is 24.53. Valdor Technology International's value of 7.69% is 68.7% below this industry median. Based on the distribution chart, Valdor Technology International ranks #2382 out of 2450 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Valdor Technology International has a GF Score™ of 44/100, reflecting its overall financial health beyond just this single metric.
How does Valdor Technology International's Gross Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Valdor Technology International ranks #2382 out of 2450 companies for Gross Margin %. This places Valdor Technology International in the lower half of its industry. The industry median Gross Margin % is 24.53. Valdor Technology International's value of 7.69% is 68.7% below this benchmark. While the company's 10-year median is 8.56 vs. the industry median of 24.53, Valdor Technology International 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 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. Valdor Technology International's current Gross Margin % of 7.69% is 68.7% 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 Valdor Technology International 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. Valdor Technology International's current Gross Margin % is 7.69%, which is 10% below median its own 10-year median of 8.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Valdor Technology International stock overvalued right now?
Valdor Technology International (STU:VZA) has a current Gross Margin % of 7.69%. The stock's GF Value™ is €2.15, compared to a current price of €0.21 — trading 90.3% below its estimated fair value. The current Gross Margin % is 7.69%, which is 10% below median its 10-year median of 8.56 and 68.7% below the Hardware industry median of 24.53. Valdor Technology International's overall GF Score™ is 44/100 with 3 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 Valdor Technology International (STU:VZA), the current Gross Margin % is 7.69% 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 Valdor Technology International (STU:VZA) Overvalued in 2026?
Based on GuruFocus' analysis, Valdor Technology International stock appears to be undervalued.
The current stock price of €0.21 is trading 90.3% below its estimated GF Value™ of €2.15.
Key valuation signals for STU:VZA:
Gross Margin %: 7.69% (10% below median its 10-year median of 8.56)
GF Value™: €2.15 vs. price of €0.21 (90.3% below fair value)
Industry Position: 68.7% below the Hardware median (#2382 of 2450)
No single metric tells the full story. See the STU:VZA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Valdor Technology International Business Description
Valdor Technology International Inc is engaged in the development, manufacturing, and marketing of fiber optic products. The majority of its revenue comes from the United States of America, while it also has a presence in Canadian markets. It serves Mining/Oil Exploration, Military/Aerospace, Medical/Industrial, and FTTx/ Data/Telecom/Security markets. The company's products include Niagara Streaming Media, NEW Core Products, Impact Mount Line, and Legacy Products.
44GF Score
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