Thermal Energy InternationalTMGEF +7.44%65 Gross Margin % is 37.13% as of Feb. 2026, which is 17% below its 10-year median of 44.68. GuruFocus rates TMGEF with a GF Score™ of 65/100 and a GF Value™ of $0.18 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 2,998 Industrial Products companies, Thermal Energy International ranks better than 82.39% on this metric.
Thermal Energy International (OTCPK:TMGEF) 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
Thermal Energy International had a gross margin of 37.13% for the quarter that ended in Feb. 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.
Thermal Energy International Gross Margin % Related Terms
Thermal Energy 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.
TMGEF vs VLTO, ZWS, CECO: Gross Margin % Comparison
For the Pollution & Treatment Controls subindustry, Thermal Energy 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.
Thermal Energy International Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Thermal Energy International's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Thermal Energy 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.
Thermal Energy International (TMGEF) has a Gross Margin % of 37.13% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Thermal Energy International and its competitors. This is 17% below median its historical median of 44.68. Over the past decade, Thermal Energy International's Gross Margin % has ranged from 38.14 to 56.39. According to the industry distribution chart, Thermal Energy International ranks #528 out of 2998 companies in the Industrial Products industry, placing it in the top 17.6%.
Is Thermal Energy International's Gross Margin % too high?
Thermal Energy International's current Gross Margin % of 37.13% is 17% below median its 10-year median of 44.68. Over the past 10 years, this metric has ranged from a low of 38.14 to a high of 56.39. The Industrial Products industry median Gross Margin % is 26.82. Thermal Energy International's value of 37.13% is 38.4% above this industry median. Based on the distribution chart, Thermal Energy International ranks #528 out of 2998 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Thermal Energy International has a GF Score™ of 65/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Thermal Energy International's Gross Margin % compare to VLTO and ZWS?
According to the Industrial Products industry distribution chart, Thermal Energy International ranks #528 out of 2998 companies for Gross Margin %. This places Thermal Energy International in the top 18% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 26.82. Thermal Energy International's value of 37.13% is 38.4% above this benchmark. Historically, Thermal Energy International's own Gross Margin % has ranged from 38.14 to 56.39 over the past decade. While the company's 10-year median is 44.68 vs. the industry median of 26.82, Thermal Energy International 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.82, based on 2,998 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. Thermal Energy International's current Gross Margin % of 37.13% is 38.4% 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 Thermal Energy International and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Thermal Energy International's current Gross Margin % is 37.13%, which is 17% below median its own 10-year median of 44.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Thermal Energy International stock overvalued right now?
Based on GuruFocus' analysis, Thermal Energy International (TMGEF) is currently considered Possible Value Trap. The stock's GF Value™ is $0.18, compared to a current price of $0.12 — trading 35.1% below its estimated fair value. The current Gross Margin % is 37.13%, which is 17% below median its 10-year median of 44.68 and 38.4% above the Industrial Products industry median of 26.82. Thermal Energy International's overall GF Score™ is 65/100 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 Thermal Energy International (TMGEF), the current Gross Margin % is 37.13% as of Feb. 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 Thermal Energy International (TMGEF) Overvalued in 2026?
Based on GuruFocus' analysis, Thermal Energy International stock appears to be undervalued.
The current stock price of $0.12 is trading 35.1% below its estimated GF Value™ of $0.18.
GuruFocus considers Thermal Energy International to be Possible Value Trap.
Key valuation signals for TMGEF:
Gross Margin %: 37.13% (17% below median its 10-year median of 44.68)
GF Value™: $0.18 vs. price of $0.12 (35.1% below fair value)
Industry Position: 38.4% above the Industrial Products median (#528 of 2998)
No single metric tells the full story. See the TMGEF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Thermal Energy International Inc is a supplier of proprietary, energy efficiency and emissions reduction solutions to the industrial and institutional sectors. It markets, sells, engineers, fabricates, constructs, installs and supports technology lines - heat recovery solutions and condensate return system solutions. The product portfolio consists of GEM steam traps, FLU-ACE - direct contact condensing heat recovery, and Dry Rex - low-temperature biomass drying systems. The operating segment includes geographical areas that reflect the core business which has units located in Ottawa, Canada and Bristol, UK. The firm derives revenue from Canada, the UK, Germany, France, Poland, India, etc and the rest of the world. Substantial sales revenue comes from the USA.
65GF Score
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