UTStarcom HoldingsUTSI +2.17%51 Gross Margin % is 6.91% as of Dec. 2025, which is 75% below its 10-year median of 27.27. GuruFocus rates UTSI with a GF Score™ of 51/100 and a GF Value™ of $1.99 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 2,449 Hardware companies, UTStarcom Holdings ranks worse than 81.22% on this metric.
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
UTStarcom Holdings had a gross margin of 6.91% 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.
UTStarcom Holdings Gross Margin % Related Terms
UTStarcom Holdings Gross Margin % Historical Data
* Premium members only.
The historical data trend for UTStarcom Holdings'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.
UTSI vs BOSC, FKWL, CMBMF: Gross Margin % Comparison
For the Communication Equipment subindustry, UTStarcom 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.
UTStarcom Holdings Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, UTStarcom Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where UTStarcom 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.
UTStarcom Holdings (UTSI) has a Gross Margin % of 6.91% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on UTStarcom Holdings and its competitors. This is 75% below median its historical median of 27.27. According to the industry distribution chart, UTStarcom Holdings ranks #1989 out of 2449 companies in the Hardware industry, placing it in the top 81.2%.
Is UTStarcom Holdings' Gross Margin % too high?
UTStarcom Holdings' current Gross Margin % of 6.91% is 75% below median its 10-year median of 27.27. The Hardware industry median Gross Margin % is 24.52. UTStarcom Holdings' value of 6.91% is 71.8% below this industry median. Based on the distribution chart, UTStarcom Holdings ranks #1989 out of 2449 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, UTStarcom Holdings has a GF Score™ of 51/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does UTStarcom Holdings' Gross Margin % compare to BOSC and FKWL?
According to the Hardware industry distribution chart, UTStarcom Holdings ranks #1989 out of 2449 companies for Gross Margin %. This places UTStarcom Holdings in the lower half of its industry. The industry median Gross Margin % is 24.52. UTStarcom Holdings' value of 6.91% is 71.8% below this benchmark. While the company's 10-year median is 27.27 vs. the industry median of 24.52, UTStarcom Holdings 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 24.52, based on 2,449 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. UTStarcom Holdings's current Gross Margin % of 6.91% is 71.8% 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 UTStarcom Holdings and its competitors. For the Hardware industry, the median Gross Margin % is 24.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. UTStarcom Holdings's current Gross Margin % is 6.91%, which is 75% below median its own 10-year median of 27.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is UTStarcom Holdings stock overvalued right now?
Based on GuruFocus' analysis, UTStarcom Holdings (UTSI) is currently considered Modestly Overvalued. The stock's GF Value™ is $1.99, compared to a current price of $2.38 — trading 19.6% above its estimated fair value. The current Gross Margin % is 6.91%, which is 75% below median its 10-year median of 27.27 and 71.8% below the Hardware industry median of 24.52. UTStarcom Holdings' overall GF Score™ is 51/100 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 UTStarcom Holdings (UTSI), the current Gross Margin % is 6.91% 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 UTStarcom Holdings (UTSI) Overvalued in 2026?
Based on GuruFocus' analysis, UTStarcom Holdings stock appears to be overvalued.
The current stock price of $2.38 is trading 19.6% above its estimated GF Value™ of $1.99.
GuruFocus considers UTStarcom Holdings to be Modestly Overvalued.
Key valuation signals for UTSI:
Gross Margin %: 6.91% (75% below median its 10-year median of 27.27)
GF Value™: $1.99 vs. price of $2.38 (19.6% above fair value)
Industry Position: 71.8% below the Hardware median (#1989 of 2449)
No single metric tells the full story. See the UTSI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
UTStarcom Holdings Corp is engaged in providing telecommunication and networking products, solutions and services, focusing on optical networking, carrier-class packet optical, network synchronization, broadband products and a Software Defined Networking (SDN) platform optimized for AI networking infrastructure, mobile backhaul, metro aggregation, broadband access and value-added services. The Company operates through two segments: Equipment, which includes the sale of network infrastructure and application products such as broadband and wireless infrastructure technologies, and Services, which generates maximum revenue and provides support and operational services for equipment products. The Company generates maximum revenue from Japan.
51GF Score
Get the complete analysis for UTSI
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
UTSI has been successfully added to your 
