NetlistSTU:XAB -1.12%53 Gross Margin % is 21.34% as of Mar. 2026, which is 200% above its 10-year median of 7.11. GuruFocus rates STU:XAB with a GF Score™ of 53/100 and a GF Value™ of €0.39. The stock has 9 warning signs investors should review. Among 2,454 Hardware companies, Netlist ranks worse than 79.91% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Netlist's Gross Profit for the
three
months ended in Mar. 2026 was €19.4 Mil. Netlist's Revenue for the
three
months ended in Mar. 2026 was €90.7 Mil. Therefore, Netlist's Gross Margin % for the quarter that ended in Mar. 2026 was 21.34%.
Warning Sign:
Netlist Inc gross margin has been in long-term decline. The average rate of decline per year is -32.2%.
The historical rank and industry rank for Netlist's Gross Margin % or its related term are showing as below:
STU:XAB'
s Gross Margin % Range Over the Past 10 Years
Min: 1.96 Med: 7.11 Max: 37.63
Current: 12.3
During the past 13 years, the highestGross Margin % of Netlist was 37.63%. The lowest was 1.96%. And the median was 7.11%.
STU:XAB's Gross Margin % is ranked worse than 79.91% of 2454
companies
in the Hardware industry
Industry Median: 24.53
vs STU:XAB: 12.30
Netlist had a gross margin of 21.34% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Netlist was -32.20% per year.
Netlist (STU:XAB) 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
Netlist had a gross margin of 21.34% 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.
Netlist Gross Margin % Related Terms
Netlist Gross Margin % Historical Data
* Premium members only.
The historical data trend for Netlist'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:XAB vs SCSC, CLMB, EACO: Gross Margin % Comparison
For the Electronics & Computer Distribution subindustry, Netlist'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.
Netlist Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Netlist's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Netlist'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.
Netlist (STU:XAB) has a Gross Margin % of 21.34% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Netlist and its competitors. This is 200% above median its historical median of 7.11. Over the past decade, Netlist's Gross Margin % has ranged from 1.96 to 37.63. According to the industry distribution chart, Netlist ranks #1961 out of 2454 companies in the Hardware industry, placing it in the top 79.9%.
Is Netlist's Gross Margin % too high?
Netlist's current Gross Margin % of 21.34% is 200% above median its 10-year median of 7.11. Over the past 10 years, this metric has ranged from a low of 1.96 to a high of 37.63. The Hardware industry median Gross Margin % is 24.53. Netlist's value of 21.34% is 13% below this industry median. Based on the distribution chart, Netlist ranks #1961 out of 2454 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Netlist has a GF Score™ of 53/100, reflecting its overall financial health beyond just this single metric.
How does Netlist's Gross Margin % compare to SCSC and CLMB?
According to the Hardware industry distribution chart, Netlist ranks #1961 out of 2454 companies for Gross Margin %. This places Netlist in the lower half of its industry. The industry median Gross Margin % is 24.53. Netlist's value of 21.34% is 13% below this benchmark. Historically, Netlist's own Gross Margin % has ranged from 1.96 to 37.63 over the past decade. While the company's 10-year median is 7.11 vs. the industry median of 24.53, Netlist 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 2,454 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. Netlist's current Gross Margin % of 21.34% is 13% 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 Netlist 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. Netlist's current Gross Margin % is 21.34%, which is 200% above median its own 10-year median of 7.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Netlist stock overvalued right now?
Netlist (STU:XAB) has a current Gross Margin % of 21.34%. The stock's GF Value™ is €0.39, compared to a current price of €0.53 — trading 35.9% above its estimated fair value. The current Gross Margin % is 21.34%, which is 200% above median its 10-year median of 7.11 and 13% below the Hardware industry median of 24.53. Netlist's overall GF Score™ is 53/100 with 9 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 Netlist (STU:XAB), the current Gross Margin % is 21.34% 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 Netlist (STU:XAB) Overvalued in 2026?
Based on GuruFocus' analysis, Netlist stock appears to be overvalued.
The current stock price of €0.53 is trading 35.9% above its estimated GF Value™ of €0.39.
Key valuation signals for STU:XAB:
Gross Margin %: 21.34% (200% above median its 10-year median of 7.11)
GF Value™: €0.39 vs. price of €0.53 (35.9% above fair value)
Industry Position: 13% below the Hardware median (#1961 of 2454)
No single metric tells the full story. See the STU:XAB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Netlist Inc is involved in the business of designing and manufacturing modular memory subsystems and also cloud service providers. Its products include Storage class memory, nonvolatile memory, enterprise SSD and embedded flash. The company's products are based on its proprietary technologies such as Presight technology, Distributed buffer architecture, IC design, PCB designs, Thermal management designs. Company has consistently driven innovation in the field of cutting-edge enterprise memory and storage, empowering businesses and industries to thrive in the digital age.
53GF Score
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