Ztest ElectronicsZTSTF -12.00%47 Gross Margin % is 43.57% as of Mar. 2026, which is 42% above its 10-year median of 30.62. GuruFocus rates ZTSTF with a GF Score™ of 47/100 and a GF Value™ of $0.15 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 2,454 Hardware companies, Ztest Electronics ranks better than 80.07% 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
Ztest Electronics had a gross margin of 43.57% 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.
Ztest Electronics Gross Margin % Related Terms
Ztest Electronics Gross Margin % Historical Data
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The historical data trend for Ztest Electronics'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.
For the Electronic Components subindustry, Ztest Electronics'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.
Ztest Electronics Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Ztest Electronics's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ztest Electronics'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.
Ztest Electronics (ZTSTF) has a Gross Margin % of 43.57% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Ztest Electronics and its competitors. This is 42% above median its historical median of 30.62. Over the past decade, Ztest Electronics' Gross Margin % has ranged from 25.57 to 42.81. According to the industry distribution chart, Ztest Electronics ranks #489 out of 2454 companies in the Hardware industry, placing it in the top 19.9%.
Is Ztest Electronics' Gross Margin % too high?
Ztest Electronics' current Gross Margin % of 43.57% is 42% above median its 10-year median of 30.62. Over the past 10 years, this metric has ranged from a low of 25.57 to a high of 42.81. The Hardware industry median Gross Margin % is 24.57. Ztest Electronics' value of 43.57% is 77.4% above this industry median. Based on the distribution chart, Ztest Electronics ranks #489 out of 2454 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Ztest Electronics has a GF Score™ of 47/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ztest Electronics' Gross Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Ztest Electronics ranks #489 out of 2454 companies for Gross Margin %. This places Ztest Electronics in the top 20% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 24.57. Ztest Electronics' value of 43.57% is 77.4% above this benchmark. Historically, Ztest Electronics' own Gross Margin % has ranged from 25.57 to 42.81 over the past decade. While the company's 10-year median is 30.62 vs. the industry median of 24.57, Ztest Electronics 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 24.57, based on 2,454 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. Ztest Electronics's current Gross Margin % of 43.57% is 77.4% 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 Ztest Electronics and its competitors. For the Hardware industry, the median Gross Margin % is 24.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ztest Electronics's current Gross Margin % is 43.57%, which is 42% above median its own 10-year median of 30.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ztest Electronics stock overvalued right now?
Based on GuruFocus' analysis, Ztest Electronics (ZTSTF) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.15, compared to a current price of $0.22 — trading 46.7% above its estimated fair value. The current Gross Margin % is 43.57%, which is 42% above median its 10-year median of 30.62 and 77.4% above the Hardware industry median of 24.57. Ztest Electronics' overall GF Score™ is 47/100 with 7 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 Ztest Electronics (ZTSTF), the current Gross Margin % is 43.57% 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 Ztest Electronics (ZTSTF) Overvalued in 2026?
Based on GuruFocus' analysis, Ztest Electronics stock appears to be overvalued.
The current stock price of $0.22 is trading 46.7% above its estimated GF Value™ of $0.15.
GuruFocus considers Ztest Electronics to be Significantly Overvalued.
Key valuation signals for ZTSTF:
Gross Margin %: 43.57% (42% above median its 10-year median of 30.62)
GF Value™: $0.15 vs. price of $0.22 (46.7% above fair value)
Industry Position: 77.4% above the Hardware median (#489 of 2454)
No single metric tells the full story. See the ZTSTF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ztest Electronics Inc is a Canada-based company. It is involved in the designing, developing, and assembling printed circuit boards and other electronic equipment. Geographically, the company operates only in Canada.
47GF Score
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