FDM Group (Holdings)FDDMF 62 Gross Margin % is 41.19% as of Dec. 2025, which is 12% below its 10-year median of 47.02. GuruFocus rates FDDMF with a GF Score™ of 62/100 and a GF Value™ of $2.35 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 2,685 Software companies, FDM Group (Holdings) ranks better than 53.41% on this metric.
FDM Group (Holdings) PLC gross margin has been in long-term decline. The average rate of decline per year is -1.9%.
The historical rank and industry rank for FDM Group (Holdings)'s Gross Margin % or its related term are showing as below:
FDDMF'
s Gross Margin % Range Over the Past 10 Years
Min: 43.59 Med: 47.02 Max: 48.6
Current: 43.6
During the past 13 years, the highestGross Margin % of FDM Group (Holdings) was 48.60%. The lowest was 43.59%. And the median was 47.02%.
FDDMF's Gross Margin % is ranked better than 53.41% of 2685
companies
in the Software industry
Industry Median: 40.45
vs FDDMF: 43.60
FDM Group (Holdings) had a gross margin of 41.19% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for FDM Group (Holdings) was -1.90% per year.
FDM Group (Holdings) (OTCPK:FDDMF) 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
FDM Group (Holdings) had a gross margin of 41.19% 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.
FDM Group (Holdings) Gross Margin % Related Terms
FDM Group (Holdings) Gross Margin % Historical Data
* Premium members only.
The historical data trend for FDM Group (Holdings)'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.
FDDMF vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, FDM Group (Holdings)'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.
FDM Group (Holdings) Gross Margin % vs Software Industry
For the Software industry and Technology sector, FDM Group (Holdings)'s Gross Margin % distribution charts can be found below:
* The bar in red indicates where FDM Group (Holdings)'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.
FDM Group (Holdings) (FDDMF) has a Gross Margin % of 41.19% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on FDM Group (Holdings) and its competitors. This is 12% below median its historical median of 47.02. Over the past decade, FDM Group (Holdings)'s Gross Margin % has ranged from 43.59 to 48.60. According to the industry distribution chart, FDM Group (Holdings) ranks #1251 out of 2685 companies in the Software industry, placing it in the top 46.6%.
Is FDM Group (Holdings)'s Gross Margin % too high?
FDM Group (Holdings)'s current Gross Margin % of 41.19% is 12% below median its 10-year median of 47.02. Over the past 10 years, this metric has ranged from a low of 43.59 to a high of 48.60. The Software industry median Gross Margin % is 40.45. FDM Group (Holdings)'s value of 41.19% is 1.8% above this industry median. Based on the distribution chart, FDM Group (Holdings) ranks #1251 out of 2685 companies in the Software industry, which is above the industry midpoint. Overall, FDM Group (Holdings) has a GF Score™ of 62/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does FDM Group (Holdings)'s Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, FDM Group (Holdings) ranks #1251 out of 2685 companies for Gross Margin %. This puts FDM Group (Holdings) in the upper half of its industry. The industry median Gross Margin % is 40.45. FDM Group (Holdings)'s value of 41.19% is 1.8% above this benchmark. Historically, FDM Group (Holdings)'s own Gross Margin % has ranged from 43.59 to 48.60 over the past decade. While the company's 10-year median is 47.02 vs. the industry median of 40.45, FDM Group (Holdings) 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. FDM Group (Holdings)'s current Gross Margin % of 41.19% is 1.8% 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 FDM Group (Holdings) 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. FDM Group (Holdings)'s current Gross Margin % is 41.19%, which is 12% below median its own 10-year median of 47.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is FDM Group (Holdings) stock overvalued right now?
Based on GuruFocus' analysis, FDM Group (Holdings) (FDDMF) is currently considered Possible Value Trap. The stock's GF Value™ is $2.35, compared to a current price of $1.43 — trading 39.1% below its estimated fair value. The current Gross Margin % is 41.19%, which is 12% below median its 10-year median of 47.02 and 1.8% above the Software industry median of 40.45. FDM Group (Holdings)'s overall GF Score™ is 62/100 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 FDM Group (Holdings) (FDDMF), the current Gross Margin % is 41.19% 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 FDM Group (Holdings) (FDDMF) Overvalued in 2026?
Based on GuruFocus' analysis, FDM Group (Holdings) stock appears to be undervalued.
The current stock price of $1.43 is trading 39.1% below its estimated GF Value™ of $2.35.
GuruFocus considers FDM Group (Holdings) to be Possible Value Trap.
Key valuation signals for FDDMF:
Gross Margin %: 41.19% (12% below median its 10-year median of 47.02)
GF Value™: $2.35 vs. price of $1.43 (39.1% below fair value)
Industry Position: 1.8% above the Software median (#1251 of 2685)
No single metric tells the full story. See the FDDMF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
FDM Group (Holdings) PLC is a holdings company that provides a variety of information technology, or IT, services through its subsidiaries. The company's primary services consist of IT and business consulting with a focus on application development and testing, support, project management, data services, business analysis, business intelligence, and cybersecurity. The company organizes itself into four segments based on geography: United Kingdom, North America, Europe, the Middle East and Africa, and Asia-Pacific. The United Kingdom segment generates the majority of revenue.
62GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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