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Litigation Capital ManagementCHIX:LITL Gross Margin % is 54.20% as of Dec. 2025, which is 12% above its 10-year median of 48.20. The stock has 5 warning signs investors should review. Among 387 Credit Services companies, Litigation Capital Management ranks better than 79.59% on this metric.
Litigation Capital Management (CHIX:LITl) 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
Litigation Capital Management had a gross margin of 54.20% for the quarter that ended in Dec. 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.
Litigation Capital Management Gross Margin % Related Terms
Litigation Capital Management 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.
Litigation Capital Management Gross Margin % Chart
CHIX:LITL vs V, MA, AXP: Gross Margin % Comparison
For the Credit Services subindustry, Litigation Capital Management'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.
Litigation Capital Management Gross Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Litigation Capital Management's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Litigation Capital Management'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.
Litigation Capital Management (CHIX:LITL) has a Gross Margin % of 54.20% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Litigation Capital Management and its competitors. This is 12% above median its historical median of 48.20. According to the industry distribution chart, Litigation Capital Management ranks #79 out of 387 companies in the Credit Services industry, placing it in the top 20.4%.
Is Litigation Capital Management's Gross Margin % too high?
Litigation Capital Management's current Gross Margin % of 54.20% is 12% above median its 10-year median of 48.20. The Credit Services industry median Gross Margin % is 51.81. Litigation Capital Management's value of 54.20% is 4.6% above this industry median. Based on the distribution chart, Litigation Capital Management ranks #79 out of 387 companies in the Credit Services industry, which is in the top quartile — a strong position relative to peers.
How does Litigation Capital Management's Gross Margin % compare to V and MA?
According to the Credit Services industry distribution chart, Litigation Capital Management ranks #79 out of 387 companies for Gross Margin %. This places Litigation Capital Management in the top 20% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 51.81. Litigation Capital Management's value of 54.20% is 4.6% above this benchmark. While the company's 10-year median is 48.20 vs. the industry median of 51.81, Litigation Capital Management 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 Credit Services company?
The median Gross Margin % among Credit Services companies is 51.81, based on 387 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. Litigation Capital Management's current Gross Margin % of 54.20% is 4.6% 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 Litigation Capital Management and its competitors. For the Credit Services industry, the median Gross Margin % is 51.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Litigation Capital Management's current Gross Margin % is 54.20%, which is 12% above median its own 10-year median of 48.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Litigation Capital Management stock overvalued right now?
Based on GuruFocus' analysis, Litigation Capital Management (CHIX:LITL) is currently considered Possible Value Trap. The stock's GF Value™ is £0.48, compared to a current price of £0.04 — trading 92.6% below its estimated fair value. The current Gross Margin % is 54.20%, which is 12% above median its 10-year median of 48.20 and 4.6% above the Credit Services industry median of 51.81. 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 Litigation Capital Management (CHIX:LITL), the current Gross Margin % is 54.20% 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.
Litigation Capital Management Business Description
Litigation Capital Management Ltd is an alternative asset manager specialising in dispute financing solutions internationally, which operates two business models. The first is direct investments made from LCM's permanent balance sheet capital, and the second is third-party fund management. Under those two business models, LCM currently pursues three investment strategies: Single-case funding, Portfolio funding, and Acquisitions of claims. LCM generates its income from both its direct investments and performance fees through asset management. The group's operating segments are Fund, which generates maximum income, and LCM.
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