Constellation TechnologiesASX:CT1 Gross Margin % is 45.45% as of Dec. 2025, which is 9% above its 10-year median of 41.68. The stock has 1 warning sign investors should review. Among 2,685 Software companies, Constellation Technologies ranks better than 71.28% 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
Constellation Technologies had a gross margin of 45.45% for the quarter that ended in Dec. 2025 => 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.
Constellation Technologies Gross Margin % Related Terms
Constellation Technologies 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.
ASX:CT1 vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, Constellation Technologies'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.
Constellation Technologies Gross Margin % vs Software Industry
For the Software industry and Technology sector, Constellation Technologies's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Constellation Technologies'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.
Constellation Technologies (ASX:CT1) has a Gross Margin % of 45.45% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Constellation Technologies and its competitors. This is near median its historical median of 41.68. According to the industry distribution chart, Constellation Technologies ranks #771 out of 2685 companies in the Software industry, placing it in the top 28.7%.
Is Constellation Technologies' Gross Margin % too high?
Constellation Technologies' current Gross Margin % of 45.45% is near median its 10-year median of 41.68. The Software industry median Gross Margin % is 40.45. Constellation Technologies' value of 45.45% is 12.4% above this industry median. Based on the distribution chart, Constellation Technologies ranks #771 out of 2685 companies in the Software industry, which is above the industry midpoint.
How does Constellation Technologies' Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Constellation Technologies ranks #771 out of 2685 companies for Gross Margin %. This puts Constellation Technologies in the upper half of its industry. The industry median Gross Margin % is 40.45. Constellation Technologies' value of 45.45% is 12.4% above this benchmark. While the company's 10-year median is 41.68 vs. the industry median of 40.45, Constellation Technologies 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 Software company?
The median Gross Margin % among Software companies is 40.45, based on 2,685 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. Constellation Technologies's current Gross Margin % of 45.45% is 12.4% 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 Constellation Technologies and its competitors. For the Software industry, the median Gross Margin % is 40.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Constellation Technologies's current Gross Margin % is 45.45%, which is near median its own 10-year median of 41.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Constellation Technologies stock overvalued right now?
Constellation Technologies (ASX:CT1) has a current Gross Margin % of 45.45%. The current Gross Margin % is 45.45%, which is near median its 10-year median of 41.68 and 12.4% above the Software industry median of 40.45. 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 Constellation Technologies (ASX:CT1), the current Gross Margin % is 45.45% as of Dec. 2025. 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.
Constellation Technologies Ltd specializes in innovation solutions to market that leverage cloud, internet of things (IoT), edge computing sensors, big data, analytics, machine learning (ML), artificial intelligence (AI), and other technologies. The Group has identified one reportable segment, which is the sale and commercialisation of IoT Solutions within Australia. The company generates revenue from Monitor tag revenue, Monitoring revenue, Consulting revenue, and Labour-hire revenue. The company generates the majority of its revenue from monitoring revenue.
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