Frontier DevelopmentsCHIX:FDEVL -0.68%49 Gross Margin % is 63.72% as of Nov. 2025, which is 8% below its 10-year median of 69.16. GuruFocus rates CHIX:FDEVL with a GF Score™ of 49/100 and a GF Value™ of £2.80 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 497 Interactive Media companies, Frontier Developments ranks better than 54.93% on this metric.
CHIX:FDEVl's Gross Margin % is ranked better than 54.93% of 497
companies
in the Interactive Media industry
Industry Median: 62.58
vs CHIX:FDEVl: 66.48
Frontier Developments had a gross margin of 63.72% for the quarter that ended in Nov. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Frontier Developments was 0.30% per year.
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
Frontier Developments had a gross margin of 63.72% for the quarter that ended in Nov. 2025 => 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.
Frontier Developments Gross Margin % Related Terms
Frontier Developments Gross Margin % Historical Data
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The historical data trend for Frontier Developments'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.
CHIX:FDEVL vs NTES, EA, TTWO: Gross Margin % Comparison
For the Electronic Gaming & Multimedia subindustry, Frontier Developments'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.
Frontier Developments Gross Margin % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Frontier Developments's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Frontier Developments'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.
Frontier Developments (CHIX:FDEVL) has a Gross Margin % of 63.72% as of Nov. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Frontier Developments and its competitors. This is near median its historical median of 69.16. Over the past decade, Frontier Developments' Gross Margin % has ranged from 60.94 to 76.14. According to the industry distribution chart, Frontier Developments ranks #224 out of 497 companies in the Interactive Media industry, placing it in the top 45.1%.
Is Frontier Developments' Gross Margin % too high?
Frontier Developments' current Gross Margin % of 63.72% is near median its 10-year median of 69.16. Over the past 10 years, this metric has ranged from a low of 60.94 to a high of 76.14. The Interactive Media industry median Gross Margin % is 62.58. Frontier Developments' value of 63.72% is 1.8% above this industry median. Based on the distribution chart, Frontier Developments ranks #224 out of 497 companies in the Interactive Media industry, which is above the industry midpoint. Overall, Frontier Developments has a GF Score™ of 49/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Frontier Developments' Gross Margin % compare to NTES and EA?
According to the Interactive Media industry distribution chart, Frontier Developments ranks #224 out of 497 companies for Gross Margin %. This puts Frontier Developments in the upper half of its industry. The industry median Gross Margin % is 62.58. Frontier Developments' value of 63.72% is 1.8% above this benchmark. Historically, Frontier Developments' own Gross Margin % has ranged from 60.94 to 76.14 over the past decade. While the company's 10-year median is 69.16 vs. the industry median of 62.58, Frontier Developments 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 an Interactive Media company?
The median Gross Margin % among Interactive Media companies is 62.58, based on 497 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. Frontier Developments's current Gross Margin % of 63.72% is 1.8% 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 Frontier Developments and its competitors. For the Interactive Media industry, the median Gross Margin % is 62.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Frontier Developments's current Gross Margin % is 63.72%, which is near median its own 10-year median of 69.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Frontier Developments stock overvalued right now?
Based on GuruFocus' analysis, Frontier Developments (CHIX:FDEVL) is currently considered Significantly Overvalued. The stock's GF Value™ is £2.80, compared to a current price of £4.02 — trading 43.4% above its estimated fair value. The current Gross Margin % is 63.72%, which is near median its 10-year median of 69.16 and 1.8% above the Interactive Media industry median of 62.58. Frontier Developments' overall GF Score™ is 49/100 with 3 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 Frontier Developments (CHIX:FDEVL), the current Gross Margin % is 63.72% as of Nov. 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 Frontier Developments (CHIX:FDEVL) Overvalued in 2026?
Based on GuruFocus' analysis, Frontier Developments stock appears to be overvalued.
The current stock price of £4.02 is trading 43.4% above its estimated GF Value™ of £2.80.
GuruFocus considers Frontier Developments to be Significantly Overvalued.
Key valuation signals for CHIX:FDEVL:
Gross Margin %: 63.72% (near median its 10-year median of 69.16)
GF Value™: £2.80 vs. price of £4.02 (43.4% above fair value)
Industry Position: 1.8% above the Interactive Media median (#224 of 497)
No single metric tells the full story. See the CHIX:FDEVL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Frontier Developments PLC is a United Kingdom-based company that develops and publishes video games for personal computers and consoles. The company is known for titles such as the Elite series, Planet Coaster, Planet Zoo, and Jurassic World Evolution. It operates through game development and publishing, using in-house technology to create and distribute interactive entertainment software. Frontier Developments has one operating segment, being revenue from publishing games and revenue from other streams such as royalties and licensing. The majority of revenue is generated from Publishing revenue.
49GF Score
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