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
DeFi Technologies had a gross margin of -215.33% for the quarter that ended in Mar. 2026 => No sustainable 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.
DeFi Technologies Gross Margin % Related Terms
DeFi Technologies Gross Margin % Historical Data
* Premium members only.
The historical data trend for DeFi Technologies'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.
For the Capital Markets subindustry, DeFi Technologies'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.
DeFi Technologies Gross Margin % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, DeFi Technologies's Gross Margin % distribution charts can be found below:
* The bar in red indicates where DeFi Technologies'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.
DeFi Technologies (DEFT) has a Gross Margin % of -215.33% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on DeFi Technologies and its competitors. Over the past decade, DeFi Technologies' Gross Margin % has ranged from 37.02 to 94.74. According to the industry distribution chart, DeFi Technologies ranks #359 out of 620 companies in the Capital Markets industry, placing it in the top 57.9%.
Is DeFi Technologies' Gross Margin % too high?
DeFi Technologies' current Gross Margin % is -215.33%. Over the past 10 years, this metric has ranged from a low of 37.02 to a high of 94.74. Based on the distribution chart, DeFi Technologies ranks #359 out of 620 companies in the Capital Markets industry, which is below the industry midpoint. Overall, DeFi Technologies has a GF Score™ of 47/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does DeFi Technologies' Gross Margin % compare to MS and GS?
According to the Capital Markets industry distribution chart, DeFi Technologies ranks #359 out of 620 companies for Gross Margin %. This places DeFi Technologies in the lower half of its industry. The industry median Gross Margin % is 49.63. Historically, DeFi Technologies' own Gross Margin % has ranged from 37.02 to 94.74 over the past decade. 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 Capital Markets company?
The median Gross Margin % among Capital Markets companies is 49.63, based on 620 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. 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 DeFi Technologies and its competitors. For the Capital Markets industry, the median Gross Margin % is 49.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. DeFi Technologies's current Gross Margin % is -215.33%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is DeFi Technologies stock overvalued right now?
Based on GuruFocus' analysis, DeFi Technologies (DEFT) is currently considered Fairly Valued. The stock's GF Value™ is $0.46, compared to a current price of $0.49 — trading 5.4% above its estimated fair value. The current Gross Margin % is -215.33%. DeFi Technologies' overall GF Score™ is 47/100 with 9 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 DeFi Technologies (DEFT), the current Gross Margin % is -215.33% 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 DeFi Technologies (DEFT) Overvalued in 2026?
Based on GuruFocus' analysis, DeFi Technologies stock appears to be overvalued.
The current stock price of $0.49 is trading 5.4% above its estimated GF Value™ of $0.46.
GuruFocus considers DeFi Technologies to be Fairly Valued.
Key valuation signals for DEFT:
Gross Margin %: -215.33%
GF Value™: $0.46 vs. price of $0.49 (5.4% above fair value)
No single metric tells the full story. See the DEFT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
DeFi Technologies Inc is a Canadian technology company bridging the gap between traditional capital markets and decentralized finance. The Company generates revenues through the issuance of exchange-traded products that synthetically track the value of a single DeFi protocol, investments in various companies and protocols across the decentralized finance ecosystem to build a diversified portfolio of decentralized finance assets, providing premium membership for research reports to investors and offering node management of decentralized protocols to support governance, security and transaction validation.
47GF Score
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