Skyworth GroupSWDHY -10.04%61 Gross Margin % is 13.34% as of Dec. 2025, which is 20% below its 10-year median of 16.73. GuruFocus rates SWDHY with a GF Score™ of 61/100 and a GF Value™ of $11.44 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 2,450 Hardware companies, Skyworth Group ranks worse than 78.69% on this metric.
Skyworth Group Ltd gross margin has been in long-term decline. The average rate of decline per year is -6.7%.
The historical rank and industry rank for Skyworth Group's Gross Margin % or its related term are showing as below:
SWDHY'
s Gross Margin % Range Over the Past 10 Years
Min: 12.82 Med: 16.73 Max: 21.93
Current: 12.82
During the past 13 years, the highestGross Margin % of Skyworth Group was 21.93%. The lowest was 12.82%. And the median was 16.73%.
SWDHY's Gross Margin % is ranked worse than 78.69% of 2450
companies
in the Hardware industry
Industry Median: 24.53
vs SWDHY: 12.82
Skyworth Group had a gross margin of 13.34% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Skyworth Group was -6.70% per year.
Skyworth Group (OTCPK:SWDHY) 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
Skyworth Group had a gross margin of 13.34% 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.
Skyworth Group Gross Margin % Related Terms
Skyworth Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for Skyworth Group'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.
For the Consumer Electronics subindustry, Skyworth Group'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.
Skyworth Group Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Skyworth Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Skyworth Group'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.
Skyworth Group (SWDHY) has a Gross Margin % of 13.34% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Skyworth Group and its competitors. This is 20% below median its historical median of 16.73. Over the past decade, Skyworth Group's Gross Margin % has ranged from 12.82 to 21.93. According to the industry distribution chart, Skyworth Group ranks #1928 out of 2450 companies in the Hardware industry, placing it in the top 78.7%.
Is Skyworth Group's Gross Margin % too high?
Skyworth Group's current Gross Margin % of 13.34% is 20% below median its 10-year median of 16.73. Over the past 10 years, this metric has ranged from a low of 12.82 to a high of 21.93. The Hardware industry median Gross Margin % is 24.53. Skyworth Group's value of 13.34% is 45.6% below this industry median. Based on the distribution chart, Skyworth Group ranks #1928 out of 2450 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Skyworth Group has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Skyworth Group's Gross Margin % compare to AAPL?
According to the Hardware industry distribution chart, Skyworth Group ranks #1928 out of 2450 companies for Gross Margin %. This places Skyworth Group in the lower half of its industry. The industry median Gross Margin % is 24.53. Skyworth Group's value of 13.34% is 45.6% below this benchmark. Historically, Skyworth Group's own Gross Margin % has ranged from 12.82 to 21.93 over the past decade. While the company's 10-year median is 16.73 vs. the industry median of 24.53, Skyworth Group 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. Skyworth Group's current Gross Margin % of 13.34% is 45.6% 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 Skyworth Group 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. Skyworth Group's current Gross Margin % is 13.34%, which is 20% below median its own 10-year median of 16.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Skyworth Group stock overvalued right now?
Based on GuruFocus' analysis, Skyworth Group (SWDHY) is currently considered Significantly Overvalued. The stock's GF Value™ is $11.44, compared to a current price of $20.87 — trading 82.4% above its estimated fair value. The current Gross Margin % is 13.34%, which is 20% below median its 10-year median of 16.73 and 45.6% below the Hardware industry median of 24.53. Skyworth Group's overall GF Score™ is 61/100 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 Skyworth Group (SWDHY), the current Gross Margin % is 13.34% 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 Skyworth Group (SWDHY) Overvalued in 2026?
Based on GuruFocus' analysis, Skyworth Group stock appears to be overvalued.
The current stock price of $20.87 is trading 82.4% above its estimated GF Value™ of $11.44.
GuruFocus considers Skyworth Group to be Significantly Overvalued.
Key valuation signals for SWDHY:
Gross Margin %: 13.34% (20% below median its 10-year median of 16.73)
GF Value™: $11.44 vs. price of $20.87 (82.4% above fair value)
Industry Position: 45.6% below the Hardware median (#1928 of 2450)
No single metric tells the full story. See the SWDHY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Skyworth Group Ltd is mainly engaged in the manufacture and sales of smart TV, home access systems, photovoltaic products, smart white appliances, intelligent manufacturing, internet value-added services, property development, property holding, modern services and trading of other products. Operating segments includes Smart Household Appliances Business which manufacture and sale of smart TV, smart white appliances and other smart appliances such as smart air conditioners, smart refrigerators; Smart Systems Technology Business which manufacture and sale of home access systems; New Energy Business which sale and installation of distributed photovoltaic power stations of which majority of revenue comes from Smart Household Appliances Business.
61GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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