Pathos CommunicationsFRA:3Z2 25 Gross Margin % is 68.86% as of Dec. 2025, which is 11% below its 10-year median of 77.07. GuruFocus rates FRA:3Z2 with a GF Score™ of 25/100. Among 946 Media - Diversified companies, Pathos Communications ranks better than 84.46% 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
Pathos Communications had a gross margin of 68.86% 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.
Pathos Communications Gross Margin % Related Terms
Pathos Communications Gross Margin % Historical Data
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The historical data trend for Pathos Communications'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.
FRA:3Z2 vs APP, OMC, TTD: Gross Margin % Comparison
For the Advertising Agencies subindustry, Pathos Communications'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.
Pathos Communications Gross Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Pathos Communications's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Pathos Communications'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.
Pathos Communications (FRA:3Z2) has a Gross Margin % of 68.86% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Pathos Communications and its competitors. This is 11% below median its historical median of 77.07. Over the past decade, Pathos Communications' Gross Margin % has ranged from 74.74 to 84.84. According to the industry distribution chart, Pathos Communications ranks #147 out of 946 companies in the Media - Diversified industry, placing it in the top 15.5%.
Is Pathos Communications' Gross Margin % too high?
Pathos Communications' current Gross Margin % of 68.86% is 11% below median its 10-year median of 77.07. Over the past 10 years, this metric has ranged from a low of 74.74 to a high of 84.84. The Media - Diversified industry median Gross Margin % is 38.91. Pathos Communications' value of 68.86% is 77% above this industry median. Based on the distribution chart, Pathos Communications ranks #147 out of 946 companies in the Media - Diversified industry, which is in the top quartile — a strong position relative to peers. Overall, Pathos Communications has a GF Score™ of 25/100, reflecting its overall financial health beyond just this single metric.
How does Pathos Communications' Gross Margin % compare to APP and OMC?
According to the Media - Diversified industry distribution chart, Pathos Communications ranks #147 out of 946 companies for Gross Margin %. This places Pathos Communications in the top 16% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 38.91. Pathos Communications' value of 68.86% is 77% above this benchmark. Historically, Pathos Communications' own Gross Margin % has ranged from 74.74 to 84.84 over the past decade. While the company's 10-year median is 77.07 vs. the industry median of 38.91, Pathos Communications 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 Media - Diversified company?
The median Gross Margin % among Media - Diversified companies is 38.91, based on 946 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. Pathos Communications's current Gross Margin % of 68.86% is 77% 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 Pathos Communications and its competitors. For the Media - Diversified industry, the median Gross Margin % is 38.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pathos Communications's current Gross Margin % is 68.86%, which is 11% below median its own 10-year median of 77.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pathos Communications stock overvalued right now?
Pathos Communications (FRA:3Z2) has a current Gross Margin % of 68.86%. The current Gross Margin % is 68.86%, which is 11% below median its 10-year median of 77.07 and 77% above the Media - Diversified industry median of 38.91. Pathos Communications' overall GF Score™ is 25/100. 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 Pathos Communications (FRA:3Z2), the current Gross Margin % is 68.86% 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.
Pathos Communications PLC specializes in creative engagement, strategic communications, and brand reputation management while remaining rooted in a deep understanding of each client's goals, voice, and vision. It offers a comprehensive range of services designed to help clients minimize risk, boost audience interaction, and maximize their return on investment (ROI).
25GF Score
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