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Ucloudlink GroupUCL -1.23%48 Gross Margin % is 50.24% as of Jun. 2026, which is 23% above its 10-year median of 40.99. GuruFocus rates UCL with a GF Score™ of 48/100 and a GF Value™ of $1.40 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 345 Telecommunication Services companies, Ucloudlink Group ranks better than 50.43% on this metric.
Ucloudlink Group (NAS:UCL) 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
Ucloudlink Group had a gross margin of 50.24% for the quarter that ended in Jun. 2026 => Durable 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.
Ucloudlink Group Gross Margin % Related Terms
Ucloudlink Group Gross Margin % Historical Data
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The historical data trend for Ucloudlink 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.
UCL vs ATGN, IOTR, IQST: Gross Margin % Comparison
For the Telecom Services subindustry, Ucloudlink 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.
Ucloudlink Group Gross Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Ucloudlink Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ucloudlink 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.
Ucloudlink Group (UCL) has a Gross Margin % of 50.24% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Ucloudlink Group and its competitors. This is 23% above median its historical median of 40.99. Over the past decade, Ucloudlink Group's Gross Margin % has ranged from 29.58 to 52.40. According to the industry distribution chart, Ucloudlink Group ranks #171 out of 345 companies in the Telecommunication Services industry, placing it in the top 49.6%.
Is Ucloudlink Group's Gross Margin % too high?
Ucloudlink Group's current Gross Margin % of 50.24% is 23% above median its 10-year median of 40.99. Over the past 10 years, this metric has ranged from a low of 29.58 to a high of 52.40. The Telecommunication Services industry median Gross Margin % is 51.15. Ucloudlink Group's value of 50.24% is 1.8% below this industry median. Based on the distribution chart, Ucloudlink Group ranks #171 out of 345 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Ucloudlink Group has a GF Score™ of 48/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Ucloudlink Group's Gross Margin % compare to ATGN and IOTR?
According to the Telecommunication Services industry distribution chart, Ucloudlink Group ranks #171 out of 345 companies for Gross Margin %. This puts Ucloudlink Group in the upper half of its industry. The industry median Gross Margin % is 51.15. Ucloudlink Group's value of 50.24% is 1.8% below this benchmark. Historically, Ucloudlink Group's own Gross Margin % has ranged from 29.58 to 52.40 over the past decade. While the company's 10-year median is 40.99 vs. the industry median of 51.15, Ucloudlink 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 Telecommunication Services company?
The median Gross Margin % among Telecommunication Services companies is 51.15, based on 345 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. Ucloudlink Group's current Gross Margin % of 50.24% is 1.8% 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 Ucloudlink Group and its competitors. For the Telecommunication Services industry, the median Gross Margin % is 51.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ucloudlink Group's current Gross Margin % is 50.24%, which is 23% above median its own 10-year median of 40.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ucloudlink Group stock overvalued right now?
Based on GuruFocus' analysis, Ucloudlink Group (UCL) is currently considered Possible Value Trap. The stock's GF Value™ is $1.40, compared to a current price of $0.40 — trading 71.2% below its estimated fair value. The current Gross Margin % is 50.24%, which is 23% above median its 10-year median of 40.99 and 1.8% below the Telecommunication Services industry median of 51.15. Ucloudlink Group's overall GF Score™ is 48/100 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 Ucloudlink Group (UCL), the current Gross Margin % is 50.24% as of Jun. 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 Ucloudlink Group (UCL) Overvalued in 2026?
Based on GuruFocus' analysis, Ucloudlink Group stock appears to be undervalued.
The current stock price of $0.40 is trading 71.2% below its estimated GF Value™ of $1.40.
GuruFocus considers Ucloudlink Group to be Possible Value Trap.
Key valuation signals for UCL:
Gross Margin %: 50.24% (23% above median its 10-year median of 40.99)
GF Value™: $1.40 vs. price of $0.40 (71.2% below fair value)
Industry Position: 1.8% below the Telecommunication Services median (#171 of 345)
No single metric tells the full story. See the UCL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ucloudlink Group Inc is engaged in the provision of data connectivity services and sales of Wi-Fi terminals and data-related products globally. Its uCloudlink cloud SIM platform is designed for shared mobile data connectivity services by allocating the SIM cards remotely and dynamically to users. Ucloudlink's core business is to provide mobile data connectivity services at competitive prices, which it delivers through a range of hardware products and service solutions to its business partners, retail, and enterprise customers. The main hardware terminals offered by the company include portable Wi-Fi terminals, smartphones, and smart-hardware products for international and local mobile data connectivity services. Geographically, it generates maximum revenue from Japan.
48GF Score
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