Locaweb Servicos de InternetBSP:LWSA3 -3.41%82 Gross Margin % is 48.38% as of Mar. 2026, which is 8% above its 10-year median of 44.81. GuruFocus rates BSP:LWSA3 with a GF Score™ of 82/100 and a GF Value™ of R$5.02 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 2,680 Software companies, Locaweb Servicos de Internet ranks better than 59.7% on this metric.
Locaweb Servicos de Internet (BSP:LWSA3) 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
Locaweb Servicos de Internet had a gross margin of 48.38% 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.
Locaweb Servicos de Internet Gross Margin % Related Terms
Locaweb Servicos de Internet 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.
BSP:LWSA3 vs MSFT, ORCL, PLTR: Gross Margin % Comparison
For the Software - Infrastructure subindustry, Locaweb Servicos de Internet'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.
Locaweb Servicos de Internet Gross Margin % vs Software Industry
For the Software industry and Technology sector, Locaweb Servicos de Internet's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Locaweb Servicos de Internet'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.
Locaweb Servicos de Internet (BSP:LWSA3) has a Gross Margin % of 48.38% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Locaweb Servicos de Internet and its competitors. This is near median its historical median of 44.81. Over the past decade, Locaweb Servicos de Internet's Gross Margin % has ranged from 41.64 to 48.73. According to the industry distribution chart, Locaweb Servicos de Internet ranks #1080 out of 2680 companies in the Software industry, placing it in the top 40.3%.
Is Locaweb Servicos de Internet's Gross Margin % too high?
Locaweb Servicos de Internet's current Gross Margin % of 48.38% is near median its 10-year median of 44.81. Over the past 10 years, this metric has ranged from a low of 41.64 to a high of 48.73. The Software industry median Gross Margin % is 40.45. Locaweb Servicos de Internet's value of 48.38% is 19.6% above this industry median. Based on the distribution chart, Locaweb Servicos de Internet ranks #1080 out of 2680 companies in the Software industry, which is above the industry midpoint. Overall, Locaweb Servicos de Internet has a GF Score™ of 82/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Locaweb Servicos de Internet's Gross Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, Locaweb Servicos de Internet ranks #1080 out of 2680 companies for Gross Margin %. This puts Locaweb Servicos de Internet in the upper half of its industry. The industry median Gross Margin % is 40.45. Locaweb Servicos de Internet's value of 48.38% is 19.6% above this benchmark. Historically, Locaweb Servicos de Internet's own Gross Margin % has ranged from 41.64 to 48.73 over the past decade. While the company's 10-year median is 44.81 vs. the industry median of 40.45, Locaweb Servicos de Internet 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 2,680 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. Locaweb Servicos de Internet's current Gross Margin % of 48.38% is 19.6% 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 Locaweb Servicos de Internet 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. Locaweb Servicos de Internet's current Gross Margin % is 48.38%, which is near median its own 10-year median of 44.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Locaweb Servicos de Internet stock overvalued right now?
Based on GuruFocus' analysis, Locaweb Servicos de Internet (BSP:LWSA3) is currently considered Modestly Undervalued. The stock's GF Value™ is R$5.02, compared to a current price of R$3.97 — trading 20.9% below its estimated fair value. The current Gross Margin % is 48.38%, which is near median its 10-year median of 44.81 and 19.6% above the Software industry median of 40.45. Locaweb Servicos de Internet's overall GF Score™ is 82/100 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 Locaweb Servicos de Internet (BSP:LWSA3), the current Gross Margin % is 48.38% 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 Locaweb Servicos de Internet (BSP:LWSA3) Overvalued in 2026?
Based on GuruFocus' analysis, Locaweb Servicos de Internet stock appears to be undervalued.
The current stock price of R$3.97 is trading 20.9% below its estimated GF Value™ of R$5.02.
GuruFocus considers Locaweb Servicos de Internet to be Modestly Undervalued.
Key valuation signals for BSP:LWSA3:
Gross Margin %: 48.38% (near median its 10-year median of 44.81)
GF Value™: R$5.02 vs. price of R$3.97 (20.9% below fair value)
Industry Position: 19.6% above the Software median (#1080 of 2680)
No single metric tells the full story. See the BSP:LWSA3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Locaweb Servicos de Internet SA is a Brazil-based software company. It offers digital marketing, cloud, and accommodation services such as website hosting, WordPress hosting, domain registration, and email services. The operations of the Company and its subsidiaries are divided into two operating segments: Be Online and SaaS, and Commerce. The Be Online and SaaS segment includes hosting and cloud services, as well as those called SaaS (email, marketing intelligence software, and site builder). The Commerce segment includes e-commerce solutions, platforms, marketplace integration, and sub-acquiring business services. It generates the majority of its revenue from the Commerce segment.
82GF Score
Get the complete analysis for BSP:LWSA3
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
BSP:LWSA3 has been successfully added to your 
