Bytes Technology GroupBYITY -7.06%66 Gross Margin % is 75.49% as of Feb. 2026, which is 7% above its 10-year median of 70.26. GuruFocus rates BYITY with a GF Score™ of 66/100 and a GF Value™ of $14.56 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 2,683 Software companies, Bytes Technology Group ranks better than 85.2% on this metric.
BYITY's Gross Margin % is ranked better than 85.2% of 2683
companies
in the Software industry
Industry Median: 40.45
vs BYITY: 75.86
Bytes Technology Group had a gross margin of 75.49% for the quarter that ended in Feb. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Bytes Technology Group was 19.00% per year.
Bytes Technology Group (OTCPK:BYITY) 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
Bytes Technology Group had a gross margin of 75.49% for the quarter that ended in Feb. 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.
Bytes Technology Group Gross Margin % Related Terms
Bytes Technology Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for Bytes Technology Group'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.
BYITY vs MSFT, ORCL, PLTR: Gross Margin % Comparison
For the Software - Infrastructure subindustry, Bytes Technology Group'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.
Bytes Technology Group Gross Margin % vs Software Industry
For the Software industry and Technology sector, Bytes Technology Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Bytes Technology Group'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.
Bytes Technology Group (BYITY) has a Gross Margin % of 75.49% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Bytes Technology Group and its competitors. This is near median its historical median of 70.26. Over the past decade, Bytes Technology Group's Gross Margin % has ranged from 13.53 to 75.86. According to the industry distribution chart, Bytes Technology Group ranks #397 out of 2683 companies in the Software industry, placing it in the top 14.8%.
Is Bytes Technology Group's Gross Margin % too high?
Bytes Technology Group's current Gross Margin % of 75.49% is near median its 10-year median of 70.26. Over the past 10 years, this metric has ranged from a low of 13.53 to a high of 75.86. The Software industry median Gross Margin % is 40.45. Bytes Technology Group's value of 75.49% is 86.6% above this industry median. Based on the distribution chart, Bytes Technology Group ranks #397 out of 2683 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Bytes Technology Group has a GF Score™ of 66/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Bytes Technology Group's Gross Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, Bytes Technology Group ranks #397 out of 2683 companies for Gross Margin %. This places Bytes Technology Group in the top 15% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.45. Bytes Technology Group's value of 75.49% is 86.6% above this benchmark. Historically, Bytes Technology Group's own Gross Margin % has ranged from 13.53 to 75.86 over the past decade. While the company's 10-year median is 70.26 vs. the industry median of 40.45, Bytes Technology Group 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. Bytes Technology Group's current Gross Margin % of 75.49% is 86.6% 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 Bytes Technology Group 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. Bytes Technology Group's current Gross Margin % is 75.49%, which is near median its own 10-year median of 70.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bytes Technology Group stock overvalued right now?
Based on GuruFocus' analysis, Bytes Technology Group (BYITY) is currently considered Significantly Undervalued. The stock's GF Value™ is $14.56, compared to a current price of $9.88 — trading 32.1% below its estimated fair value. The current Gross Margin % is 75.49%, which is near median its 10-year median of 70.26 and 86.6% above the Software industry median of 40.45. Bytes Technology Group's overall GF Score™ is 66/100 with 2 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 Bytes Technology Group (BYITY), the current Gross Margin % is 75.49% as of Feb. 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 Bytes Technology Group (BYITY) Overvalued in 2026?
Based on GuruFocus' analysis, Bytes Technology Group stock appears to be undervalued.
The current stock price of $9.88 is trading 32.1% below its estimated GF Value™ of $14.56.
GuruFocus considers Bytes Technology Group to be Significantly Undervalued.
Key valuation signals for BYITY:
Gross Margin %: 75.49% (near median its 10-year median of 70.26)
GF Value™: $14.56 vs. price of $9.88 (32.1% below fair value)
Industry Position: 86.6% above the Software median (#397 of 2683)
No single metric tells the full story. See the BYITY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bytes Technology Group PLC is one of the UK's heading providers of IT software offerings and solutions, with a focus on cloud and security products. The Group enables effective and cost-efficient technology sourcing, adoption and management across software services, including in the areas of security and cloud. The company has only one reportable segment. The company's products are Software, Hardware, Services internal, and Services external. The company has presence in United Kingdom, Europe, Rest of world. The company generates majority of revenue from United Kingdom.
66GF Score
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