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Capricorn Systems Global Solutions (BOM:512169) 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
Capricorn Systems Global Solutions had a gross margin of 1.69% 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.
Capricorn Systems Global Solutions Gross Margin % Related Terms
Capricorn Systems Global Solutions 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.
Capricorn Systems Global Solutions Gross Margin % Chart
BOM:512169 vs UBER, SHOP, CRM: Gross Margin % Comparison
For the Software - Application subindustry, Capricorn Systems Global Solutions'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.
Capricorn Systems Global Solutions Gross Margin % vs Software Industry
For the Software industry and Technology sector, Capricorn Systems Global Solutions's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Capricorn Systems Global Solutions'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.
Capricorn Systems Global Solutions (BOM:512169) has a Gross Margin % of 1.69% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Capricorn Systems Global Solutions and its competitors. This is 91% below median its historical median of 19.79. Over the past decade, Capricorn Systems Global Solutions' Gross Margin % has ranged from 1.80 to 32.08. According to the industry distribution chart, Capricorn Systems Global Solutions ranks #2581 out of 2685 companies in the Software industry, placing it in the top 96.1%.
Is Capricorn Systems Global Solutions' Gross Margin % too high?
Capricorn Systems Global Solutions' current Gross Margin % of 1.69% is 91% below median its 10-year median of 19.79. Over the past 10 years, this metric has ranged from a low of 1.80 to a high of 32.08. The Software industry median Gross Margin % is 40.49. Capricorn Systems Global Solutions' value of 1.69% is 95.8% below this industry median. Based on the distribution chart, Capricorn Systems Global Solutions ranks #2581 out of 2685 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Capricorn Systems Global Solutions has a GF Score™ of 61/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Capricorn Systems Global Solutions' Gross Margin % compare to UBER and SHOP?
According to the Software industry distribution chart, Capricorn Systems Global Solutions ranks #2581 out of 2685 companies for Gross Margin %. This places Capricorn Systems Global Solutions in the lower half of its industry. The industry median Gross Margin % is 40.49. Capricorn Systems Global Solutions' value of 1.69% is 95.8% below this benchmark. Historically, Capricorn Systems Global Solutions' own Gross Margin % has ranged from 1.80 to 32.08 over the past decade. While the company's 10-year median is 19.79 vs. the industry median of 40.49, Capricorn Systems Global Solutions 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 Software company?
The median Gross Margin % among Software companies is 40.49, 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. Capricorn Systems Global Solutions's current Gross Margin % of 1.69% is 95.8% 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 Capricorn Systems Global Solutions and its competitors. For the Software industry, the median Gross Margin % is 40.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Capricorn Systems Global Solutions's current Gross Margin % is 1.69%, which is 91% below median its own 10-year median of 19.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Capricorn Systems Global Solutions stock overvalued right now?
Based on GuruFocus' analysis, Capricorn Systems Global Solutions (BOM:512169) is currently considered Possible Value Trap. The stock's GF Value™ is ₹67.06, compared to a current price of ₹17.45 — trading 74% below its estimated fair value. The current Gross Margin % is 1.69%, which is 91% below median its 10-year median of 19.79 and 95.8% below the Software industry median of 40.49. Capricorn Systems Global Solutions' overall GF Score™ is 61/100 with 5 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 Capricorn Systems Global Solutions (BOM:512169), the current Gross Margin % is 1.69% 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 Capricorn Systems Global Solutions (BOM:512169) Overvalued in 2026?
Based on GuruFocus' analysis, Capricorn Systems Global Solutions stock appears to be undervalued.
The current stock price of ₹17.45 is trading 74% below its estimated GF Value™ of ₹67.06.
GuruFocus considers Capricorn Systems Global Solutions to be Possible Value Trap.
Key valuation signals for BOM:512169:
Gross Margin %: 1.69% (91% below median its 10-year median of 19.79)
GF Value™: ₹67.06 vs. price of ₹17.45 (74% below fair value)
Industry Position: 95.8% below the Software median (#2581 of 2685)
No single metric tells the full story. See the BOM:512169 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Capricorn Systems Global Solutions Business Description
Capricorn Systems Global Solutions Ltd is engaged in software development and provides software development and consultancy services in the fields of software and allied services. The Company operates through the software development and other IT-enabled services segment. Its services include offshore and on-site development and consulting, professional IT staffing, and training, supporting clients in managing technological growth, bridging skill gaps, and meeting productivity, quality, and budget requirements.
61GF Score
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