VTech HoldingsVTKLY +8.50%70 Gross Margin % is 33.54% as of Mar. 2026, which is 9% above its 10-year median of 30.64. GuruFocus rates VTKLY with a GF Score™ of 70/100 and a GF Value™ of $6.35 (Fairly Valued). The stock has 3 warning signs investors should review. Among 2,450 Hardware companies, VTech Holdings ranks better than 65.59% 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
VTech Holdings had a gross margin of 33.54% 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.
VTech Holdings Gross Margin % Related Terms
VTech Holdings Gross Margin % Historical Data
* Premium members only.
The historical data trend for VTech 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.
VTKLY vs CSCO, CIEN, MSI: Gross Margin % Comparison
For the Communication Equipment subindustry, VTech 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.
VTech Holdings Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, VTech Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where VTech 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.
VTech Holdings (VTKLY) has a Gross Margin % of 33.54% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on VTech Holdings and its competitors. This is near median its historical median of 30.64. Over the past decade, VTech Holdings' Gross Margin % has ranged from 28.23 to 33.16. According to the industry distribution chart, VTech Holdings ranks #843 out of 2450 companies in the Hardware industry, placing it in the top 34.4%.
Is VTech Holdings' Gross Margin % too high?
VTech Holdings' current Gross Margin % of 33.54% is near median its 10-year median of 30.64. Over the past 10 years, this metric has ranged from a low of 28.23 to a high of 33.16. The Hardware industry median Gross Margin % is 24.50. VTech Holdings' value of 33.54% is 36.9% above this industry median. Based on the distribution chart, VTech Holdings ranks #843 out of 2450 companies in the Hardware industry, which is above the industry midpoint. Overall, VTech Holdings has a GF Score™ of 70/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does VTech Holdings' Gross Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, VTech Holdings ranks #843 out of 2450 companies for Gross Margin %. This puts VTech Holdings in the upper half of its industry. The industry median Gross Margin % is 24.50. VTech Holdings' value of 33.54% is 36.9% above this benchmark. Historically, VTech Holdings' own Gross Margin % has ranged from 28.23 to 33.16 over the past decade. While the company's 10-year median is 30.64 vs. the industry median of 24.50, VTech Holdings 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 Hardware company?
The median Gross Margin % among Hardware companies is 24.50, based on 2,450 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. VTech Holdings's current Gross Margin % of 33.54% is 36.9% 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 VTech Holdings and its competitors. For the Hardware industry, the median Gross Margin % is 24.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. VTech Holdings's current Gross Margin % is 33.54%, which is near median its own 10-year median of 30.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is VTech Holdings stock overvalued right now?
Based on GuruFocus' analysis, VTech Holdings (VTKLY) is currently considered Fairly Valued. The stock's GF Value™ is $6.35, compared to a current price of $6.89 — trading 8.5% above its estimated fair value. The current Gross Margin % is 33.54%, which is near median its 10-year median of 30.64 and 36.9% above the Hardware industry median of 24.50. VTech Holdings' overall GF Score™ is 70/100 with 3 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 VTech Holdings (VTKLY), the current Gross Margin % is 33.54% 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 VTech Holdings (VTKLY) Overvalued in 2026?
Based on GuruFocus' analysis, VTech Holdings stock appears to be overvalued.
The current stock price of $6.89 is trading 8.5% above its estimated GF Value™ of $6.35.
GuruFocus considers VTech Holdings to be Fairly Valued.
Key valuation signals for VTKLY:
Gross Margin %: 33.54% (near median its 10-year median of 30.64)
GF Value™: $6.35 vs. price of $6.89 (8.5% above fair value)
Industry Position: 36.9% above the Hardware median (#843 of 2450)
No single metric tells the full story. See the VTKLY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
VTech Holdings Ltd is engaged in the designing, manufacturing, and distribution of consumer electronic products. It also provides contract manufacturing services. The company's diverse collection of products includes Telephone Products, Business Phones, Electronic Learning Toys, Baby Monitors, and Hospitality Products. In addition, it offers turnkey services to customers in several product categories. The company operates through four reportable segments: North America, (including the United States and Canada), Europe, Asia Pacific, and Others, which covers sales of electronic products to the rest of the world. It generates maximum revenue from Europe.
70GF Score
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