Technology OneASX:TNE +2.45%100 Gross Margin % is 86.59% as of Mar. 2026, which is 0% below its 10-year median of 87.02. GuruFocus rates ASX:TNE with a GF Score™ of 100/100 and a GF Value™ of A$30.00 (Fairly Valued). The stock has 1 warning sign investors should review. Among 2,683 Software companies, Technology One ranks better than 93.18% on this metric.
The historical rank and industry rank for Technology One's Gross Margin % or its related term are showing as below:
ASX:TNE'
s Gross Margin % Range Over the Past 10 Years
Min: 86.31 Med: 87.02 Max: 87.93
Current: 86.7
During the past 13 years, the highestGross Margin % of Technology One was 87.93%. The lowest was 86.31%. And the median was 87.02%.
ASX:TNE's Gross Margin % is ranked better than 93.18% of 2683
companies
in the Software industry
Industry Median: 40.45
vs ASX:TNE: 86.70
Technology One had a gross margin of 86.59% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Technology One was 0.00% per year.
Technology One (ASX:TNE) 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
Technology One had a gross margin of 86.59% 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.
Technology One Gross Margin % Related Terms
Technology One Gross Margin % Historical Data
* Premium members only.
The historical data trend for Technology One'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.
ASX:TNE vs CRM, SHOP, UBER: Gross Margin % Comparison
For the Software - Application subindustry, Technology One'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.
Technology One Gross Margin % vs Software Industry
For the Software industry and Technology sector, Technology One's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Technology One'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.
Technology One (ASX:TNE) has a Gross Margin % of 86.59% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Technology One and its competitors. This is near median its historical median of 87.02. Over the past decade, Technology One's Gross Margin % has ranged from 86.31 to 87.93. According to the industry distribution chart, Technology One ranks #183 out of 2683 companies in the Software industry, placing it in the top 6.8%.
Is Technology One's Gross Margin % too high?
Technology One's current Gross Margin % of 86.59% is near median its 10-year median of 87.02. Over the past 10 years, this metric has ranged from a low of 86.31 to a high of 87.93. The Software industry median Gross Margin % is 40.45. Technology One's value of 86.59% is 114.1% above this industry median. Based on the distribution chart, Technology One ranks #183 out of 2683 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Technology One has a GF Score™ of 100/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Technology One's Gross Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, Technology One ranks #183 out of 2683 companies for Gross Margin %. This places Technology One in the top 7% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.45. Technology One's value of 86.59% is 114.1% above this benchmark. Historically, Technology One's own Gross Margin % has ranged from 86.31 to 87.93 over the past decade. While the company's 10-year median is 87.02 vs. the industry median of 40.45, Technology One 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 2,683 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. Technology One's current Gross Margin % of 86.59% is 114.1% 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 Technology One 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. Technology One's current Gross Margin % is 86.59%, which is near median its own 10-year median of 87.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Technology One stock overvalued right now?
Based on GuruFocus' analysis, Technology One (ASX:TNE) is currently considered Fairly Valued. The stock's GF Value™ is A$30.00, compared to a current price of A$28.41 — trading 5.3% below its estimated fair value. The current Gross Margin % is 86.59%, which is near median its 10-year median of 87.02 and 114.1% above the Software industry median of 40.45. Technology One's overall GF Score™ is 100/100 with 1 warning sign 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 Technology One (ASX:TNE), the current Gross Margin % is 86.59% 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 Technology One (ASX:TNE) Overvalued in 2026?
Based on GuruFocus' analysis, Technology One stock appears to be undervalued.
The current stock price of A$28.41 is trading 5.3% below its estimated GF Value™ of A$30.00.
GuruFocus considers Technology One to be Fairly Valued.
Key valuation signals for ASX:TNE:
Gross Margin %: 86.59% (near median its 10-year median of 87.02)
GF Value™: A$30.00 vs. price of A$28.41 (5.3% below fair value)
Industry Position: 114.1% above the Software median (#183 of 2683)
No single metric tells the full story. See the ASX:TNE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Technology One is a technology company providing enterprise resource planning software, primarily to governmental organizations, education institutions, and healthcare organizations in Australia, New Zealand, and the United Kingdom. Over the past three decades, Technology One has successfully carved out its niche, boasting dominant market shares in some of its key verticals, world-leading annual customer retention rates of over 99%, and a consistently growing number of products used per customer.
100GF Score
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