XSWX:LHA's Gross Margin % is ranked worse than 68.63% of 985
companies
in the Transportation industry
Industry Median: 20.42
vs XSWX:LHA: 13.19
Deutsche Lufthansa AG had a gross margin of 3.65% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Deutsche Lufthansa AG was 0.00% per year.
Deutsche Lufthansa AG (XSWX:LHA) 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
Deutsche Lufthansa AG had a gross margin of 3.65% 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.
Deutsche Lufthansa AG Gross Margin % Related Terms
Deutsche Lufthansa AG Gross Margin % Historical Data
* Premium members only.
The historical data trend for Deutsche Lufthansa AG'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.
XSWX:LHA vs DAL, UAL, LUV: Gross Margin % Comparison
For the Airlines subindustry, Deutsche Lufthansa AG'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.
Deutsche Lufthansa AG Gross Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, Deutsche Lufthansa AG's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Deutsche Lufthansa AG'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.
Deutsche Lufthansa AG (XSWX:LHA) has a Gross Margin % of 3.65% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Deutsche Lufthansa AG and its competitors. This is 73% below median its historical median of 13.60. According to the industry distribution chart, Deutsche Lufthansa AG ranks #676 out of 985 companies in the Transportation industry, placing it in the top 68.6%.
Is Deutsche Lufthansa AG's Gross Margin % too high?
Deutsche Lufthansa AG's current Gross Margin % of 3.65% is 73% below median its 10-year median of 13.60. The Transportation industry median Gross Margin % is 20.42. Deutsche Lufthansa AG's value of 3.65% is 82.1% below this industry median. Based on the distribution chart, Deutsche Lufthansa AG ranks #676 out of 985 companies in the Transportation industry, which is below the industry midpoint. Overall, Deutsche Lufthansa AG has a GF Score™ of 74/100, reflecting its overall financial health beyond just this single metric.
How does Deutsche Lufthansa AG's Gross Margin % compare to DAL and UAL?
According to the Transportation industry distribution chart, Deutsche Lufthansa AG ranks #676 out of 985 companies for Gross Margin %. This places Deutsche Lufthansa AG in the lower half of its industry. The industry median Gross Margin % is 20.42. Deutsche Lufthansa AG's value of 3.65% is 82.1% below this benchmark. While the company's 10-year median is 13.60 vs. the industry median of 20.42, Deutsche Lufthansa AG 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 Transportation company?
The median Gross Margin % among Transportation companies is 20.42, based on 985 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. Deutsche Lufthansa AG's current Gross Margin % of 3.65% is 82.1% 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 Deutsche Lufthansa AG and its competitors. For the Transportation industry, the median Gross Margin % is 20.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Deutsche Lufthansa AG's current Gross Margin % is 3.65%, which is 73% below median its own 10-year median of 13.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Deutsche Lufthansa AG stock overvalued right now?
Deutsche Lufthansa AG (XSWX:LHA) has a current Gross Margin % of 3.65%. The stock's GF Value™ is CHF7.28, compared to a current price of CHF9.05 — trading 24.3% above its estimated fair value. The current Gross Margin % is 3.65%, which is 73% below median its 10-year median of 13.60 and 82.1% below the Transportation industry median of 20.42. Deutsche Lufthansa AG's overall GF Score™ is 74/100 with 8 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 Deutsche Lufthansa AG (XSWX:LHA), the current Gross Margin % is 3.65% 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 Deutsche Lufthansa AG (XSWX:LHA) Overvalued in 2026?
Based on GuruFocus' analysis, Deutsche Lufthansa AG stock appears to be overvalued.
The current stock price of CHF9.05 is trading 24.3% above its estimated GF Value™ of CHF7.28.
Key valuation signals for XSWX:LHA:
Gross Margin %: 3.65% (73% below median its 10-year median of 13.60)
GF Value™: CHF7.28 vs. price of CHF9.05 (24.3% above fair value)
Industry Position: 82.1% below the Transportation median (#676 of 985)
No single metric tells the full story. See the XSWX:LHA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lufthansa AG is a European airline group operating through three primary segments: passenger airlines, logistics (Lufthansa Cargo), and MRO (Lufthansa Technik). The passenger airlines segment includes Lufthansa German Airlines, SWISS, Austrian Airlines, Brussels Airlines, Eurowings, and the equity interest in SunExpress. As of 2025, Lufthansa also holds a 41% stake in ITA Airways, with strategic integration underway.
74GF Score
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