Rapac Communication & Infrastructure (XTAE:RPAC) 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
Rapac Communication & Infrastructure had a gross margin of 15.70% 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.
Rapac Communication & Infrastructure Gross Margin % Related Terms
Rapac Communication & Infrastructure 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.
Rapac Communication & Infrastructure Gross Margin % Chart
XTAE:RPAC vs CSCO, CIEN, MSI: Gross Margin % Comparison
For the Communication Equipment subindustry, Rapac Communication & Infrastructure'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.
Rapac Communication & Infrastructure Gross Margin % vs Hardware Industry
* 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.
Rapac Communication & Infrastructure (XTAE:RPAC) has a Gross Margin % of 15.70% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Rapac Communication & Infrastructure and its competitors. This is 19% below median its historical median of 19.45. Over the past decade, Rapac Communication & Infrastructure's Gross Margin % has ranged from 15.02 to 23.37. According to the industry distribution chart, Rapac Communication & Infrastructure ranks #1793 out of 2457 companies in the Hardware industry, placing it in the top 73%.
Is Rapac Communication & Infrastructure's Gross Margin % too high?
Rapac Communication & Infrastructure's current Gross Margin % of 15.70% is 19% below median its 10-year median of 19.45. Over the past 10 years, this metric has ranged from a low of 15.02 to a high of 23.37. The Hardware industry median Gross Margin % is 24.54. Rapac Communication & Infrastructure's value of 15.70% is 36% below this industry median. Based on the distribution chart, Rapac Communication & Infrastructure ranks #1793 out of 2457 companies in the Hardware industry, which is below the industry midpoint. Overall, Rapac Communication & Infrastructure has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rapac Communication & Infrastructure's Gross Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Rapac Communication & Infrastructure ranks #1793 out of 2457 companies for Gross Margin %. This places Rapac Communication & Infrastructure in the lower half of its industry. The industry median Gross Margin % is 24.54. Rapac Communication & Infrastructure's value of 15.70% is 36% below this benchmark. Historically, Rapac Communication & Infrastructure's own Gross Margin % has ranged from 15.02 to 23.37 over the past decade. While the company's 10-year median is 19.45 vs. the industry median of 24.54, Rapac Communication & Infrastructure 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 24.54, based on 2,457 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. Rapac Communication & Infrastructure's current Gross Margin % of 15.70% is 36% 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 Rapac Communication & Infrastructure and its competitors. For the Hardware industry, the median Gross Margin % is 24.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rapac Communication & Infrastructure's current Gross Margin % is 15.70%, which is 19% below median its own 10-year median of 19.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rapac Communication & Infrastructure stock overvalued right now?
Based on GuruFocus' analysis, Rapac Communication & Infrastructure (XTAE:RPAC) is currently considered Significantly Overvalued. The stock's GF Value™ is ₪42.31, compared to a current price of ₪95.41 — trading 125.5% above its estimated fair value. The current Gross Margin % is 15.70%, which is 19% below median its 10-year median of 19.45 and 36% below the Hardware industry median of 24.54. Rapac Communication & Infrastructure's overall GF Score™ is 62/100 with 9 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 Rapac Communication & Infrastructure (XTAE:RPAC), the current Gross Margin % is 15.70% 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 Rapac Communication & Infrastructure (XTAE:RPAC) Overvalued in 2026?
Based on GuruFocus' analysis, Rapac Communication & Infrastructure stock appears to be overvalued.
The current stock price of ₪95.41 is trading 125.5% above its estimated GF Value™ of ₪42.31.
GuruFocus considers Rapac Communication & Infrastructure to be Significantly Overvalued.
Key valuation signals for XTAE:RPAC:
Gross Margin %: 15.70% (19% below median its 10-year median of 19.45)
GF Value™: ₪42.31 vs. price of ₪95.41 (125.5% above fair value)
Industry Position: 36% below the Hardware median (#1793 of 2457)
No single metric tells the full story. See the XTAE:RPAC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rapac Communication & Infrastructure Business Description
Rapac Communication & Infrastructure Ltd manufactures telecommunication equipments. It provides equipments for broadcast applications. It also works in the domain of data communication, voice communication & multimedia through its subsidiaries. It focuses on telecom, government and energy and infrastructure in Israel.
62GF Score
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