Digital GarageDLGEF 54 Gross Margin % is 59.66% as of Mar. 2026, which is 16% below its 10-year median of 70.86. GuruFocus rates DLGEF with a GF Score™ of 54/100 and a GF Value™ of $41.54. The stock has 10 warning signs investors should review. Among 2,685 Software companies, Digital Garage ranks better than 77.5% on this metric.
Digital Garage Inc gross margin has been in long-term decline. The average rate of decline per year is -3.1%.
The historical rank and industry rank for Digital Garage's Gross Margin % or its related term are showing as below:
DLGEF'
s Gross Margin % Range Over the Past 10 Years
Min: 66.2 Med: 70.86 Max: 85.59
Current: 67.58
During the past 13 years, the highestGross Margin % of Digital Garage was 85.59%. The lowest was 66.20%. And the median was 70.86%.
DLGEF's Gross Margin % is ranked better than 77.5% of 2685
companies
in the Software industry
Industry Median: 40.45
vs DLGEF: 67.58
Digital Garage had a gross margin of 59.66% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Digital Garage was -3.10% per year.
Digital Garage (OTCPK:DLGEF) 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
Digital Garage had a gross margin of 59.66% 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.
Digital Garage Gross Margin % Related Terms
Digital Garage Gross Margin % Historical Data
* Premium members only.
The historical data trend for Digital Garage'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.
DLGEF vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, Digital Garage'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.
Digital Garage Gross Margin % vs Software Industry
For the Software industry and Technology sector, Digital Garage's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Digital Garage'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.
Digital Garage (DLGEF) has a Gross Margin % of 59.66% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Digital Garage and its competitors. This is 16% below median its historical median of 70.86. Over the past decade, Digital Garage's Gross Margin % has ranged from 66.20 to 85.59. According to the industry distribution chart, Digital Garage ranks #604 out of 2685 companies in the Software industry, placing it in the top 22.5%.
Is Digital Garage's Gross Margin % too high?
Digital Garage's current Gross Margin % of 59.66% is 16% below median its 10-year median of 70.86. Over the past 10 years, this metric has ranged from a low of 66.20 to a high of 85.59. The Software industry median Gross Margin % is 40.45. Digital Garage's value of 59.66% is 47.5% above this industry median. Based on the distribution chart, Digital Garage ranks #604 out of 2685 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Digital Garage has a GF Score™ of 54/100, reflecting its overall financial health beyond just this single metric.
How does Digital Garage's Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Digital Garage ranks #604 out of 2685 companies for Gross Margin %. This places Digital Garage in the top 23% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.45. Digital Garage's value of 59.66% is 47.5% above this benchmark. Historically, Digital Garage's own Gross Margin % has ranged from 66.20 to 85.59 over the past decade. While the company's 10-year median is 70.86 vs. the industry median of 40.45, Digital Garage 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 2,685 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. Digital Garage's current Gross Margin % of 59.66% is 47.5% 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 Digital Garage 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. Digital Garage's current Gross Margin % is 59.66%, which is 16% below median its own 10-year median of 70.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Digital Garage stock overvalued right now?
Digital Garage (DLGEF) has a current Gross Margin % of 59.66%. The stock's GF Value™ is $41.54, compared to a current price of $17.54 — trading 57.8% below its estimated fair value. The current Gross Margin % is 59.66%, which is 16% below median its 10-year median of 70.86 and 47.5% above the Software industry median of 40.45. Digital Garage's overall GF Score™ is 54/100 with 10 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 Digital Garage (DLGEF), the current Gross Margin % is 59.66% 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 Digital Garage (DLGEF) Overvalued in 2026?
Based on GuruFocus' analysis, Digital Garage stock appears to be undervalued.
The current stock price of $17.54 is trading 57.8% below its estimated GF Value™ of $41.54.
Key valuation signals for DLGEF:
Gross Margin %: 59.66% (16% below median its 10-year median of 70.86)
GF Value™: $41.54 vs. price of $17.54 (57.8% below fair value)
Industry Position: 47.5% above the Software median (#604 of 2685)
No single metric tells the full story. See the DLGEF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Digital Garage Inc integrates three technologies--information technology, marketing technology, and financial technology--into one solution that it provides to its business customers. The company operates three primary business segments. The incubation segment invests in and develops startups and new businesses. The marketing segment provides advertising and promotion solutions that reach consumers. The financial segment offers payment solutions to monetize Internet businesses. The marketing and financial segments provide most of the company's revenue. Digital Garage operates primarily in Japan.
54GF Score
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