Coveo SolutionsCVOSF 54 Gross Margin % is 77.52% as of Mar. 2026, which is 1% above its 10-year median of 77.00. GuruFocus rates CVOSF with a GF Score™ of 54/100 and a GF Value™ of $6.46 (Possible Value Trap). The stock has 2 warning signs investors should review. Among 2,683 Software companies, Coveo Solutions ranks better than 86.92% on this metric.
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
Coveo Solutions had a gross margin of 77.52% 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.
Coveo Solutions Gross Margin % Related Terms
Coveo Solutions Gross Margin % Historical Data
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The historical data trend for Coveo Solutions'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.
CVOSF vs MSFT, ORCL, PLTR: Gross Margin % Comparison
For the Software - Infrastructure subindustry, Coveo Solutions'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.
Coveo Solutions Gross Margin % vs Software Industry
For the Software industry and Technology sector, Coveo Solutions's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Coveo Solutions'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.
Coveo Solutions (CVOSF) has a Gross Margin % of 77.52% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Coveo Solutions and its competitors. This is near median its historical median of 77.00. Over the past decade, Coveo Solutions' Gross Margin % has ranged from 74.71 to 78.70. According to the industry distribution chart, Coveo Solutions ranks #351 out of 2683 companies in the Software industry, placing it in the top 13.1%.
Is Coveo Solutions' Gross Margin % too high?
Coveo Solutions' current Gross Margin % of 77.52% is near median its 10-year median of 77.00. Over the past 10 years, this metric has ranged from a low of 74.71 to a high of 78.70. The Software industry median Gross Margin % is 40.45. Coveo Solutions' value of 77.52% is 91.6% above this industry median. Based on the distribution chart, Coveo Solutions ranks #351 out of 2683 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Coveo Solutions has a GF Score™ of 54/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Coveo Solutions' Gross Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, Coveo Solutions ranks #351 out of 2683 companies for Gross Margin %. This places Coveo Solutions in the top 13% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.45. Coveo Solutions' value of 77.52% is 91.6% above this benchmark. Historically, Coveo Solutions' own Gross Margin % has ranged from 74.71 to 78.70 over the past decade. While the company's 10-year median is 77.00 vs. the industry median of 40.45, Coveo Solutions 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. Coveo Solutions's current Gross Margin % of 77.52% is 91.6% 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 Coveo Solutions 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. Coveo Solutions's current Gross Margin % is 77.52%, which is near median its own 10-year median of 77.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Coveo Solutions stock overvalued right now?
Based on GuruFocus' analysis, Coveo Solutions (CVOSF) is currently considered Possible Value Trap. The stock's GF Value™ is $6.46, compared to a current price of $2.93 — trading 54.7% below its estimated fair value. The current Gross Margin % is 77.52%, which is near median its 10-year median of 77.00 and 91.6% above the Software industry median of 40.45. Coveo Solutions' overall GF Score™ is 54/100 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 Coveo Solutions (CVOSF), the current Gross Margin % is 77.52% 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 Coveo Solutions (CVOSF) Overvalued in 2026?
Based on GuruFocus' analysis, Coveo Solutions stock appears to be undervalued.
The current stock price of $2.93 is trading 54.7% below its estimated GF Value™ of $6.46.
GuruFocus considers Coveo Solutions to be Possible Value Trap.
Key valuation signals for CVOSF:
Gross Margin %: 77.52% (near median its 10-year median of 77.00)
GF Value™: $6.46 vs. price of $2.93 (54.7% below fair value)
Industry Position: 91.6% above the Software median (#351 of 2683)
No single metric tells the full story. See the CVOSF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Coveo Solutions Inc is an AI-powered platform. It provides applied AI solutions enabling enterprises to deliver relevant digital experiences at scale. The Company's Software as a Service ("SaaS") AI platform and suite of AI models and products are designed to bring AI-Relevance across commerce, service, website, and workplace applications. Geographically, the company generates maximum revenue from the United States, followed by Canada, and other regions.
54GF Score
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