Volvo ABVOLAF -1.64%92 Gross Margin % is 25.93% as of Mar. 2026, which is 8% above its 10-year median of 24.01. GuruFocus rates VOLAF with a GF Score™ of 92/100 and a GF Value™ of $28.60 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 210 Farm & Heavy Construction Machinery companies, Volvo AB ranks worse than 56.19% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Volvo AB's Gross Profit for the
three
months ended in Mar. 2026 was $3,083 Mil. Volvo AB's Revenue for the
three
months ended in Mar. 2026 was $11,888 Mil. Therefore, Volvo AB's Gross Margin % for the quarter that ended in Mar. 2026 was 25.93%.
The historical rank and industry rank for Volvo AB's Gross Margin % or its related term are showing as below:
VOLAF'
s Gross Margin % Range Over the Past 10 Years
Min: 22.35 Med: 24.01 Max: 27.34
Current: 24.49
During the past 13 years, the highestGross Margin % of Volvo AB was 27.34%. The lowest was 22.35%. And the median was 24.01%.
VOLAF's Gross Margin % is ranked worse than 56.19% of 210
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 25.595
vs VOLAF: 24.49
Volvo AB had a gross margin of 25.93% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Volvo AB was 2.10% per year.
Volvo AB (OTCPK:VOLAF) 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
Volvo AB had a gross margin of 25.93% for the quarter that ended in Mar. 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.
Volvo AB Gross Margin % Related Terms
Volvo AB Gross Margin % Historical Data
* Premium members only.
The historical data trend for Volvo AB'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 Farm & Heavy Construction Machinery subindustry, Volvo AB'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.
Volvo AB Gross Margin % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Volvo AB's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Volvo AB'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.
Volvo AB (VOLAF) has a Gross Margin % of 25.93% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Volvo AB and its competitors. This is near median its historical median of 24.01. Over the past decade, Volvo AB's Gross Margin % has ranged from 22.35 to 27.34. According to the industry distribution chart, Volvo AB ranks #118 out of 210 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 56.2%.
Is Volvo AB's Gross Margin % too high?
Volvo AB's current Gross Margin % of 25.93% is near median its 10-year median of 24.01. Over the past 10 years, this metric has ranged from a low of 22.35 to a high of 27.34. The Farm & Heavy Construction Machinery industry median Gross Margin % is 25.60. Volvo AB's value of 25.93% is 1.3% above this industry median. Based on the distribution chart, Volvo AB ranks #118 out of 210 companies in the Farm & Heavy Construction Machinery industry, which is below the industry midpoint. Overall, Volvo AB has a GF Score™ of 92/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Volvo AB's Gross Margin % compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Volvo AB ranks #118 out of 210 companies for Gross Margin %. This places Volvo AB in the lower half of its industry. The industry median Gross Margin % is 25.60. Volvo AB's value of 25.93% is 1.3% above this benchmark. Historically, Volvo AB's own Gross Margin % has ranged from 22.35 to 27.34 over the past decade. While the company's 10-year median is 24.01 vs. the industry median of 25.60, Volvo AB 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 a Farm & Heavy Construction Machinery company?
The median Gross Margin % among Farm & Heavy Construction Machinery companies is 25.60, based on 210 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. Volvo AB's current Gross Margin % of 25.93% is 1.3% 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 Volvo AB and its competitors. For the Farm & Heavy Construction Machinery industry, the median Gross Margin % is 25.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Volvo AB's current Gross Margin % is 25.93%, which is near median its own 10-year median of 24.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Volvo AB stock overvalued right now?
Based on GuruFocus' analysis, Volvo AB (VOLAF) is currently considered Modestly Overvalued. The stock's GF Value™ is $28.60, compared to a current price of $34.15 — trading 19.4% above its estimated fair value. The current Gross Margin % is 25.93%, which is near median its 10-year median of 24.01 and 1.3% above the Farm & Heavy Construction Machinery industry median of 25.60. Volvo AB's overall GF Score™ is 92/100 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 Volvo AB (VOLAF), the current Gross Margin % is 25.93% 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 Volvo AB (VOLAF) Overvalued in 2026?
Based on GuruFocus' analysis, Volvo AB stock appears to be overvalued.
The current stock price of $34.15 is trading 19.4% above its estimated GF Value™ of $28.60.
GuruFocus considers Volvo AB to be Modestly Overvalued.
Key valuation signals for VOLAF:
Gross Margin %: 25.93% (near median its 10-year median of 24.01)
GF Value™: $28.60 vs. price of $34.15 (19.4% above fair value)
Industry Position: 1.3% above the Farm & Heavy Construction Machinery median (#118 of 210)
No single metric tells the full story. See the VOLAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Volvo Group is one of the largest global truck, bus, construction equipment, and engine and power system original equipment manufacturers, operating with the Volvo, Renault Truck, Mack Trucks, Volvo Penta, and Nova Bus brands. Among the four largest Western global brands—Volvo, Daimler, Paccar, and Traton—Volvo ranks third in terms of annual deliveries. Its truck, construction equipment, bus, and engines and power system segments contributed 71%, 18%, 5%, and 5%, respectively, to industrial operations' revenue in 2025. An in-house financial services division supports these businesses. In its key regions of Europe, North America, Brazil, and Australia, the truck business holds large market shares of 29%, 17%, 24%, and 22%, respectively.
92GF Score
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