Zeo EnergyZEO -1.43%19 Gross Margin % is 42.51% as of Mar. 2026, which is 7% below its 10-year median of 45.81. GuruFocus rates ZEO with a GF Score™ of 19/100. The stock has 4 warning signs investors should review. Among 1,009 Semiconductors companies, Zeo Energy ranks better than 87.51% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Zeo Energy's Gross Profit for the
three
months ended in Mar. 2026 was $5.61 Mil. Zeo Energy's Revenue for the
three
months ended in Mar. 2026 was $13.19 Mil. Therefore, Zeo Energy's Gross Margin % for the quarter that ended in Mar. 2026 was 42.51%.
The historical rank and industry rank for Zeo Energy's Gross Margin % or its related term are showing as below:
ZEO'
s Gross Margin % Range Over the Past 10 Years
Min: 19.96 Med: 45.81 Max: 55.2
Current: 54.09
During the past 5 years, the highestGross Margin % of Zeo Energy was 55.20%. The lowest was 19.96%. And the median was 45.81%.
ZEO's Gross Margin % is ranked better than 87.51% of 1009
companies
in the Semiconductors industry
Industry Median: 29.61
vs ZEO: 54.09
Zeo Energy had a gross margin of 42.51% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Zeo Energy was 0.00% per year.
Zeo Energy (NAS:ZEO) 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
Zeo Energy had a gross margin of 42.51% for the quarter that ended in Mar. 2026 => Durable 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.
Zeo Energy Gross Margin % Related Terms
Zeo Energy Gross Margin % Historical Data
* Premium members only.
The historical data trend for Zeo Energy'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.
ZEO vs BEEM, SMXT, SUNE: Gross Margin % Comparison
For the Solar subindustry, Zeo Energy'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.
Zeo Energy Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Zeo Energy's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Zeo Energy'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.
Zeo Energy (ZEO) has a Gross Margin % of 42.51% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Zeo Energy and its competitors. This is near median its historical median of 45.81. Over the past decade, Zeo Energy's Gross Margin % has ranged from 19.96 to 55.20. According to the industry distribution chart, Zeo Energy ranks #126 out of 1009 companies in the Semiconductors industry, placing it in the top 12.5%.
Is Zeo Energy's Gross Margin % too high?
Zeo Energy's current Gross Margin % of 42.51% is near median its 10-year median of 45.81. Over the past 10 years, this metric has ranged from a low of 19.96 to a high of 55.20. The Semiconductors industry median Gross Margin % is 29.61. Zeo Energy's value of 42.51% is 43.6% above this industry median. Based on the distribution chart, Zeo Energy ranks #126 out of 1009 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Zeo Energy has a GF Score™ of 19/100, reflecting its overall financial health beyond just this single metric.
How does Zeo Energy's Gross Margin % compare to BEEM and SMXT?
According to the Semiconductors industry distribution chart, Zeo Energy ranks #126 out of 1009 companies for Gross Margin %. This places Zeo Energy in the top 13% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 29.61. Zeo Energy's value of 42.51% is 43.6% above this benchmark. Historically, Zeo Energy's own Gross Margin % has ranged from 19.96 to 55.20 over the past decade. While the company's 10-year median is 45.81 vs. the industry median of 29.61, Zeo Energy 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 Semiconductors company?
The median Gross Margin % among Semiconductors companies is 29.61, based on 1,009 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. Zeo Energy's current Gross Margin % of 42.51% is 43.6% 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 Zeo Energy and its competitors. For the Semiconductors industry, the median Gross Margin % is 29.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zeo Energy's current Gross Margin % is 42.51%, which is near median its own 10-year median of 45.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zeo Energy stock overvalued right now?
Zeo Energy (ZEO) has a current Gross Margin % of 42.51%. The current Gross Margin % is 42.51%, which is near median its 10-year median of 45.81 and 43.6% above the Semiconductors industry median of 29.61. Zeo Energy's overall GF Score™ is 19/100 with 4 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 Zeo Energy (ZEO), the current Gross Margin % is 42.51% 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.
Zeo Energy Corp is a vertically integrated company offering energy solutions and services that include sales, design, procurement, installation, and maintenance of residential solar energy systems. Many of its solar energy system customers also purchase other energy efficiency-related equipment or services, or roofing services from the company. Zeo Energy's majority customers are located in Florida, Texas, Arkansas, Missouri, Ohio, and Illinois. The company has two operating and reportable segments: Sunergy and Heliogen. Maximum revenue is generated from the Sunergy segment, which includes the design, procurement, installation, and servicing of residential solar photovoltaic systems and related roofing services.
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