Digerati TechnologiesDTGI Gross Margin % is 37.98% as of Oct. 2025, which is 31% below its 10-year median of 55.15. The stock has 6 warning signs investors should review. Among 341 Telecommunication Services companies, Digerati Technologies ranks better than 58.06% 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
Digerati Technologies had a gross margin of 37.98% for the quarter that ended in Oct. 2025 => Competition eroding margins
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.
Digerati Technologies Gross Margin % Related Terms
Digerati Technologies Gross Margin % Historical Data
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The historical data trend for Digerati 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.
DTGI vs IOTR, KTEL, SURG: Gross Margin % Comparison
For the Telecom Services subindustry, Digerati 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.
Digerati Technologies Gross Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Digerati Technologies's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Digerati 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.
Digerati Technologies (DTGI) has a Gross Margin % of 37.98% as of Oct. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Digerati Technologies and its competitors. This is 31% below median its historical median of 55.15. Over the past decade, Digerati Technologies' Gross Margin % has ranged from 30.57 to 64.31. According to the industry distribution chart, Digerati Technologies ranks #143 out of 341 companies in the Telecommunication Services industry, placing it in the top 41.9%.
Is Digerati Technologies' Gross Margin % too high?
Digerati Technologies' current Gross Margin % of 37.98% is 31% below median its 10-year median of 55.15. Over the past 10 years, this metric has ranged from a low of 30.57 to a high of 64.31. The Telecommunication Services industry median Gross Margin % is 51.50. Digerati Technologies' value of 37.98% is 26.3% below this industry median. Based on the distribution chart, Digerati Technologies ranks #143 out of 341 companies in the Telecommunication Services industry, which is above the industry midpoint.
How does Digerati Technologies' Gross Margin % compare to IOTR and KTEL?
According to the Telecommunication Services industry distribution chart, Digerati Technologies ranks #143 out of 341 companies for Gross Margin %. This puts Digerati Technologies in the upper half of its industry. The industry median Gross Margin % is 51.50. Digerati Technologies' value of 37.98% is 26.3% below this benchmark. Historically, Digerati Technologies' own Gross Margin % has ranged from 30.57 to 64.31 over the past decade. While the company's 10-year median is 55.15 vs. the industry median of 51.50, Digerati Technologies has consistently been below 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 Telecommunication Services company?
The median Gross Margin % among Telecommunication Services companies is 51.50, based on 341 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. Digerati Technologies's current Gross Margin % of 37.98% is 26.3% below 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 Digerati Technologies and its competitors. For the Telecommunication Services industry, the median Gross Margin % is 51.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Digerati Technologies's current Gross Margin % is 37.98%, which is 31% below median its own 10-year median of 55.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Digerati Technologies stock overvalued right now?
Based on GuruFocus' analysis, Digerati Technologies (DTGI) is currently considered Possible Value Trap. The stock's GF Value™ is $0.02, compared to a current price of $0.01 — trading 71.5% below its estimated fair value. The current Gross Margin % is 37.98%, which is 31% below median its 10-year median of 55.15 and 26.3% below the Telecommunication Services industry median of 51.50. 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 Digerati Technologies (DTGI), the current Gross Margin % is 37.98% as of Oct. 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.
Digerati Technologies Inc is a provider of cloud services specializing in Unified Communications as a Service (UCaaS) solutions. The company's product portfolio includes Internet-based telephony products and services delivered through its cloud application platform and session-based communication network and network services including internet broadband, fiber, mobile broadband and cloud WAN solutions (SD WAN). Its services provide enterprise-class, carrier-grade services to the small-to-medium-sized business at cost-effective monthly rates. Its UCaaS or cloud communication services include fully hosted IP/PBX, mobile applications, Voice over Internet Protocol transport, SIP trunking, and customized VoIP services all delivered Only in the Cloud.
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