Liberty Defense Holdings (TSXV:SCAN) 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
Liberty Defense Holdings had a gross margin of 2.30% for the quarter that ended in Mar. 2026 => 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.
Liberty Defense Holdings Gross Margin % Related Terms
Liberty Defense Holdings 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.
TSXV:SCAN vs ALLE, MSA, ADT: Gross Margin % Comparison
For the Security & Protection Services subindustry, Liberty Defense Holdings'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.
Liberty Defense Holdings Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Liberty Defense Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Liberty Defense Holdings'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.
Liberty Defense Holdings (TSXV:SCAN) has a Gross Margin % of 2.30% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Liberty Defense Holdings and its competitors. According to the industry distribution chart, Liberty Defense Holdings ranks #1003 out of 1007 companies in the Business Services industry, placing it in the top 99.6%.
Is Liberty Defense Holdings' Gross Margin % too high?
Liberty Defense Holdings' current Gross Margin % is 2.30%. The Business Services industry median Gross Margin % is 34.50. Liberty Defense Holdings' value of 2.30% is 93.3% below this industry median. Based on the distribution chart, Liberty Defense Holdings ranks #1003 out of 1007 companies in the Business Services industry, which is in the bottom quartile relative to peers. Overall, Liberty Defense Holdings has a GF Score™ of 33/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Liberty Defense Holdings' Gross Margin % compare to ALLE and MSA?
According to the Business Services industry distribution chart, Liberty Defense Holdings ranks #1003 out of 1007 companies for Gross Margin %. This places Liberty Defense Holdings in the lower half of its industry. The industry median Gross Margin % is 34.50. Liberty Defense Holdings' value of 2.30% is 93.3% below this benchmark. 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 Business Services company?
The median Gross Margin % among Business Services companies is 34.50, based on 1,007 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. Liberty Defense Holdings's current Gross Margin % of 2.30% is 93.3% 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 Liberty Defense Holdings and its competitors. For the Business Services industry, the median Gross Margin % is 34.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Liberty Defense Holdings's current Gross Margin % is 2.30%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Liberty Defense Holdings stock overvalued right now?
Based on GuruFocus' analysis, Liberty Defense Holdings (TSXV:SCAN) is currently considered Modestly Undervalued. The stock's GF Value™ is C$7.45, compared to a current price of C$5.67 — trading 23.9% below its estimated fair value. The current Gross Margin % is 2.30% and 93.3% below the Business Services industry median of 34.50. Liberty Defense Holdings' overall GF Score™ is 33/100 with 6 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 Liberty Defense Holdings (TSXV:SCAN), the current Gross Margin % is 2.30% 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 Liberty Defense Holdings (TSXV:SCAN) Overvalued in 2026?
Based on GuruFocus' analysis, Liberty Defense Holdings stock appears to be undervalued.
The current stock price of C$5.67 is trading 23.9% below its estimated GF Value™ of C$7.45.
GuruFocus considers Liberty Defense Holdings to be Modestly Undervalued.
Key valuation signals for TSXV:SCAN:
Gross Margin %: 2.30%
GF Value™: C$7.45 vs. price of C$5.67 (23.9% below fair value)
Industry Position: 93.3% below the Business Services median (#1003 of 1007)
No single metric tells the full story. See the TSXV:SCAN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Liberty Defense Holdings Ltd is engaged in the development and commercialization of security detection technologies such as airports, stadiums, schools, and more. The company's Hexwave product utilizes millimeter wave technology and Advanced 3D imaging to detect concealed threats. In addition to HEXWAVE, the company has licensed High-Definition Advanced Imaging Technology (HD-AIT) for body and shoe scanning. The Company operates through three distinct segments: Corporate, HEXWAVE, and Contract. The company generates the majority of its revenue from the Contract segment. Geographically, the company generates the majority of its revenue from the United States.
33GF Score
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