dotDigital GroupDOTDF 84 Gross Margin % is 79.74% as of Dec. 2025, which is 5% below its 10-year median of 84.12. GuruFocus rates DOTDF with a GF Score™ of 84/100 and a GF Value™ of $1.41 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 2,683 Software companies, dotDigital Group ranks better than 88.78% on this metric.
dotDigital Group PLC gross margin has been in long-term decline. The average rate of decline per year is -2.4%.
The historical rank and industry rank for dotDigital Group's Gross Margin % or its related term are showing as below:
DOTDF'
s Gross Margin % Range Over the Past 10 Years
Min: 79.27 Med: 84.12 Max: 91.77
Current: 80.1
During the past 13 years, the highestGross Margin % of dotDigital Group was 91.77%. The lowest was 79.27%. And the median was 84.12%.
DOTDF's Gross Margin % is ranked better than 88.78% of 2683
companies
in the Software industry
Industry Median: 40.45
vs DOTDF: 80.10
dotDigital Group had a gross margin of 79.74% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for dotDigital Group was -2.40% per year.
dotDigital Group (OTCPK:DOTDF) 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
dotDigital Group had a gross margin of 79.74% 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.
dotDigital Group Gross Margin % Related Terms
dotDigital Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for dotDigital Group'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.
DOTDF vs CRM, SHOP, UBER: Gross Margin % Comparison
For the Software - Application subindustry, dotDigital Group'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.
dotDigital Group Gross Margin % vs Software Industry
For the Software industry and Technology sector, dotDigital Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where dotDigital Group'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.
dotDigital Group (DOTDF) has a Gross Margin % of 79.74% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on dotDigital Group and its competitors. This is near median its historical median of 84.12. Over the past decade, dotDigital Group's Gross Margin % has ranged from 79.27 to 91.77. According to the industry distribution chart, dotDigital Group ranks #301 out of 2683 companies in the Software industry, placing it in the top 11.2%.
Is dotDigital Group's Gross Margin % too high?
dotDigital Group's current Gross Margin % of 79.74% is near median its 10-year median of 84.12. Over the past 10 years, this metric has ranged from a low of 79.27 to a high of 91.77. The Software industry median Gross Margin % is 40.45. dotDigital Group's value of 79.74% is 97.1% above this industry median. Based on the distribution chart, dotDigital Group ranks #301 out of 2683 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, dotDigital Group has a GF Score™ of 84/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does dotDigital Group's Gross Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, dotDigital Group ranks #301 out of 2683 companies for Gross Margin %. This places dotDigital Group in the top 11% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.45. dotDigital Group's value of 79.74% is 97.1% above this benchmark. Historically, dotDigital Group's own Gross Margin % has ranged from 79.27 to 91.77 over the past decade. While the company's 10-year median is 84.12 vs. the industry median of 40.45, dotDigital Group 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. dotDigital Group's current Gross Margin % of 79.74% is 97.1% 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 dotDigital Group 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. dotDigital Group's current Gross Margin % is 79.74%, which is near median its own 10-year median of 84.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is dotDigital Group stock overvalued right now?
Based on GuruFocus' analysis, dotDigital Group (DOTDF) is currently considered Significantly Undervalued. The stock's GF Value™ is $1.41, compared to a current price of $0.65 — trading 53.9% below its estimated fair value. The current Gross Margin % is 79.74%, which is near median its 10-year median of 84.12 and 97.1% above the Software industry median of 40.45. dotDigital Group's overall GF Score™ is 84/100 with 4 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 dotDigital Group (DOTDF), the current Gross Margin % is 79.74% 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.
Is dotDigital Group (DOTDF) Overvalued in 2026?
Based on GuruFocus' analysis, dotDigital Group stock appears to be undervalued.
The current stock price of $0.65 is trading 53.9% below its estimated GF Value™ of $1.41.
GuruFocus considers dotDigital Group to be Significantly Undervalued.
Key valuation signals for DOTDF:
Gross Margin %: 79.74% (near median its 10-year median of 84.12)
GF Value™: $1.41 vs. price of $0.65 (53.9% below fair value)
Industry Position: 97.1% above the Software median (#301 of 2683)
No single metric tells the full story. See the DOTDF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
dotDigital Group PLC is a software-as-a-service technology company, offering cross-channel marketing automation technology to marketing professionals. Its customer experience and data platform (CXDP) combines automation and AI to help businesses deliver hyper-relevant customer experiences at scale. The platform also allows Dotdigital's customers to automate personalised marketing experiences across web, email, SMS, WhatsApp, chat, push, social, ads, and other media. The group's operating segments are EMEA (its key revenue-generating market), the U.S., and the Asia Pacific (APAC) region.
84GF Score
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