United Airlines HoldingsXSWX:UAL 79 Gross Margin % is 25.14% as of Mar. 2026, which is 12% below its 10-year median of 28.41. GuruFocus rates XSWX:UAL with a GF Score™ of 79/100 and a GF Value™ of CHF62.50. The stock has 8 warning signs investors should review. Among 985 Transportation companies, United Airlines Holdings ranks better than 66.8% on this metric.
United Airlines Holdings (XSWX:UAL) 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
United Airlines Holdings had a gross margin of 25.14% 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.
United Airlines Holdings Gross Margin % Related Terms
United Airlines Holdings Gross Margin % Historical Data
* 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:UAL vs LUV, DAL, AAL: Gross Margin % Comparison
For the Airlines subindustry, United Airlines 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.
United Airlines Holdings Gross Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, United Airlines Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where United Airlines 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.
United Airlines Holdings (XSWX:UAL) has a Gross Margin % of 25.14% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on United Airlines Holdings and its competitors. This is 12% below median its historical median of 28.41. According to the industry distribution chart, United Airlines Holdings ranks #327 out of 985 companies in the Transportation industry, placing it in the top 33.2%.
Is United Airlines Holdings' Gross Margin % too high?
United Airlines Holdings' current Gross Margin % of 25.14% is 12% below median its 10-year median of 28.41. The Transportation industry median Gross Margin % is 20.42. United Airlines Holdings' value of 25.14% is 23.1% above this industry median. Based on the distribution chart, United Airlines Holdings ranks #327 out of 985 companies in the Transportation industry, which is above the industry midpoint. Overall, United Airlines Holdings has a GF Score™ of 79/100, reflecting its overall financial health beyond just this single metric.
How does United Airlines Holdings' Gross Margin % compare to LUV and DAL?
According to the Transportation industry distribution chart, United Airlines Holdings ranks #327 out of 985 companies for Gross Margin %. This puts United Airlines Holdings in the upper half of its industry. The industry median Gross Margin % is 20.42. United Airlines Holdings' value of 25.14% is 23.1% above this benchmark. While the company's 10-year median is 28.41 vs. the industry median of 20.42, United Airlines 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 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. United Airlines Holdings's current Gross Margin % of 25.14% is 23.1% 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 United Airlines Holdings 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. United Airlines Holdings's current Gross Margin % is 25.14%, which is 12% below median its own 10-year median of 28.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is United Airlines Holdings stock overvalued right now?
United Airlines Holdings (XSWX:UAL) has a current Gross Margin % of 25.14%. The stock's GF Value™ is CHF62.50, compared to a current price of CHF97.03 — trading 55.2% above its estimated fair value. The current Gross Margin % is 25.14%, which is 12% below median its 10-year median of 28.41 and 23.1% above the Transportation industry median of 20.42. United Airlines Holdings' overall GF Score™ is 79/100 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 United Airlines Holdings (XSWX:UAL), the current Gross Margin % is 25.14% 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 United Airlines Holdings (XSWX:UAL) Overvalued in 2026?
Based on GuruFocus' analysis, United Airlines Holdings stock appears to be overvalued.
The current stock price of CHF97.03 is trading 55.2% above its estimated GF Value™ of CHF62.50.
Key valuation signals for XSWX:UAL:
Gross Margin %: 25.14% (12% below median its 10-year median of 28.41)
GF Value™: CHF62.50 vs. price of CHF97.03 (55.2% above fair value)
Industry Position: 23.1% above the Transportation median (#327 of 985)
No single metric tells the full story. See the XSWX:UAL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chicago-based United Airlines is a major US network carrier with hubs in San Francisco, Chicago, Houston, Denver, Los Angeles, Newark, and Washington, D.C. United operates a hub-and-spoke system that is more focused on international and long-haul travel, especially across the Pacific, than its large US peers.
79GF Score
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