Capgemini SECAPMF -0.25%80 Gross Margin % is 27.64% as of Dec. 2025, which is 3% above its 10-year median of 26.94. GuruFocus rates CAPMF with a GF Score™ of 80/100 and a GF Value™ of $200.98 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 2,683 Software companies, Capgemini SE ranks worse than 67.57% on this metric.
The historical rank and industry rank for Capgemini SE's Gross Margin % or its related term are showing as below:
CAPMF'
s Gross Margin % Range Over the Past 10 Years
Min: 26.1 Med: 26.94 Max: 27.39
Current: 27.04
During the past 13 years, the highestGross Margin % of Capgemini SE was 27.39%. The lowest was 26.10%. And the median was 26.94%.
CAPMF's Gross Margin % is ranked worse than 67.57% of 2683
companies
in the Software industry
Industry Median: 40.45
vs CAPMF: 27.04
Capgemini SE had a gross margin of 27.64% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Capgemini SE was 0.90% per year.
Capgemini SE (OTCPK:CAPMF) 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
Capgemini SE had a gross margin of 27.64% for the quarter that ended in Dec. 2025 => Competition eroding margins
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.
Capgemini SE Gross Margin % Related Terms
Capgemini SE Gross Margin % Historical Data
* Premium members only.
The historical data trend for Capgemini SE'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.
CAPMF vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, Capgemini SE'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.
Capgemini SE Gross Margin % vs Software Industry
For the Software industry and Technology sector, Capgemini SE's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Capgemini SE'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.
Capgemini SE (CAPMF) has a Gross Margin % of 27.64% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Capgemini SE and its competitors. This is near median its historical median of 26.94. Over the past decade, Capgemini SE's Gross Margin % has ranged from 26.10 to 27.39. According to the industry distribution chart, Capgemini SE ranks #1813 out of 2683 companies in the Software industry, placing it in the top 67.6%.
Is Capgemini SE's Gross Margin % too high?
Capgemini SE's current Gross Margin % of 27.64% is near median its 10-year median of 26.94. Over the past 10 years, this metric has ranged from a low of 26.10 to a high of 27.39. The Software industry median Gross Margin % is 40.45. Capgemini SE's value of 27.64% is 31.7% below this industry median. Based on the distribution chart, Capgemini SE ranks #1813 out of 2683 companies in the Software industry, which is below the industry midpoint. Overall, Capgemini SE has a GF Score™ of 80/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Capgemini SE's Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Capgemini SE ranks #1813 out of 2683 companies for Gross Margin %. This places Capgemini SE in the lower half of its industry. The industry median Gross Margin % is 40.45. Capgemini SE's value of 27.64% is 31.7% below this benchmark. Historically, Capgemini SE's own Gross Margin % has ranged from 26.10 to 27.39 over the past decade. While the company's 10-year median is 26.94 vs. the industry median of 40.45, Capgemini SE 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 40.45, 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. Capgemini SE's current Gross Margin % of 27.64% is 31.7% 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 Capgemini SE 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. Capgemini SE's current Gross Margin % is 27.64%, which is near median its own 10-year median of 26.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Capgemini SE stock overvalued right now?
Based on GuruFocus' analysis, Capgemini SE (CAPMF) is currently considered Significantly Undervalued. The stock's GF Value™ is $200.98, compared to a current price of $102.00 — trading 49.2% below its estimated fair value. The current Gross Margin % is 27.64%, which is near median its 10-year median of 26.94 and 31.7% below the Software industry median of 40.45. Capgemini SE's overall GF Score™ is 80/100 with 4 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 Capgemini SE (CAPMF), the current Gross Margin % is 27.64% 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.
Is Capgemini SE (CAPMF) Overvalued in 2026?
Based on GuruFocus' analysis, Capgemini SE stock appears to be undervalued.
The current stock price of $102.00 is trading 49.2% below its estimated GF Value™ of $200.98.
GuruFocus considers Capgemini SE to be Significantly Undervalued.
Key valuation signals for CAPMF:
Gross Margin %: 27.64% (near median its 10-year median of 26.94)
GF Value™: $200.98 vs. price of $102.00 (49.2% below fair value)
Industry Position: 31.7% below the Software median (#1813 of 2683)
No single metric tells the full story. See the CAPMF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Capgemini is a French IT services company with a global presence. The firm has over 450 offices globally, with more than half of its employees based in India. Capgemini provides services related to IT consulting, software application and technology services, infrastructure management, engineering research and development, and business process outsourcing.
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