Data StorageDTST +8.21%50 Gross Margin % is 53.60% as of Mar. 2026, which is 30% above its 10-year median of 41.17. GuruFocus rates DTST with a GF Score™ of 50/100 and a GF Value™ of $1.53 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 2,683 Software companies, Data Storage ranks better than 59.97% on this metric.
The historical rank and industry rank for Data Storage's Gross Margin % or its related term are showing as below:
DTST'
s Gross Margin % Range Over the Past 10 Years
Min: 29.21 Med: 41.17 Max: 49.04
Current: 49.04
During the past 13 years, the highestGross Margin % of Data Storage was 49.04%. The lowest was 29.21%. And the median was 41.17%.
DTST's Gross Margin % is ranked better than 59.97% of 2683
companies
in the Software industry
Industry Median: 40.45
vs DTST: 49.04
Data Storage had a gross margin of 53.60% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Data Storage was 1.20% per year.
Data Storage (NAS:DTST) 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
Data Storage had a gross margin of 53.60% 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.
Data Storage Gross Margin % Related Terms
Data Storage Gross Margin % Historical Data
* Premium members only.
The historical data trend for Data Storage'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.
DTST vs GLE, SEAV, SUIC: Gross Margin % Comparison
For the Information Technology Services subindustry, Data Storage'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.
Data Storage Gross Margin % vs Software Industry
For the Software industry and Technology sector, Data Storage's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Data Storage'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.
Data Storage (DTST) has a Gross Margin % of 53.60% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Data Storage and its competitors. This is 30% above median its historical median of 41.17. Over the past decade, Data Storage's Gross Margin % has ranged from 29.21 to 49.04. According to the industry distribution chart, Data Storage ranks #1074 out of 2683 companies in the Software industry, placing it in the top 40%.
Is Data Storage's Gross Margin % too high?
Data Storage's current Gross Margin % of 53.60% is 30% above median its 10-year median of 41.17. Over the past 10 years, this metric has ranged from a low of 29.21 to a high of 49.04. The Software industry median Gross Margin % is 40.45. Data Storage's value of 53.60% is 32.5% above this industry median. Based on the distribution chart, Data Storage ranks #1074 out of 2683 companies in the Software industry, which is above the industry midpoint. Overall, Data Storage has a GF Score™ of 50/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Data Storage's Gross Margin % compare to GLE and SEAV?
According to the Software industry distribution chart, Data Storage ranks #1074 out of 2683 companies for Gross Margin %. This puts Data Storage in the upper half of its industry. The industry median Gross Margin % is 40.45. Data Storage's value of 53.60% is 32.5% above this benchmark. Historically, Data Storage's own Gross Margin % has ranged from 29.21 to 49.04 over the past decade. While the company's 10-year median is 41.17 vs. the industry median of 40.45, Data Storage 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. Data Storage's current Gross Margin % of 53.60% is 32.5% 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 Data Storage 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. Data Storage's current Gross Margin % is 53.60%, which is 30% above median its own 10-year median of 41.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Data Storage stock overvalued right now?
Based on GuruFocus' analysis, Data Storage (DTST) is currently considered Significantly Overvalued. The stock's GF Value™ is $1.53, compared to a current price of $3.69 — trading 141.2% above its estimated fair value. The current Gross Margin % is 53.60%, which is 30% above median its 10-year median of 41.17 and 32.5% above the Software industry median of 40.45. Data Storage's overall GF Score™ is 50/100 with 6 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 Data Storage (DTST), the current Gross Margin % is 53.60% 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 Data Storage (DTST) Overvalued in 2026?
Based on GuruFocus' analysis, Data Storage stock appears to be overvalued.
The current stock price of $3.69 is trading 141.2% above its estimated GF Value™ of $1.53.
GuruFocus considers Data Storage to be Significantly Overvalued.
Key valuation signals for DTST:
Gross Margin %: 53.60% (30% above median its 10-year median of 41.17)
GF Value™: $1.53 vs. price of $3.69 (141.2% above fair value)
Industry Position: 32.5% above the Software median (#1074 of 2683)
No single metric tells the full story. See the DTST stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Data Storage Corporation engages in providing cybersecurity, compliance and cloud computing solutions. The company's segment includes Nexxis Inc and corporate segment. It generates maximum revenue from the Nexxis Corporation segment. The company's solutions include infrastructure, disaster recovery, email archival, compliance, electronic vaulting, virtualized recovery, telecom recovery services, and continuous data protection.
50GF Score
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