PROG HoldingsFRA:AZD +4.10%89 Gross Margin % is 91.58% as of Mar. 2026, which is 32% below its 10-year median of 134.25. GuruFocus rates FRA:AZD with a GF Score™ of 89/100 and a GF Value™ of €33.25 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 1,007 Business Services companies, PROG Holdings ranks better than 96.62% 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
PROG Holdings had a gross margin of 91.58% 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.
PROG Holdings Gross Margin % Related Terms
PROG Holdings Gross Margin % Historical Data
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The historical data trend for PROG 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.
FRA:AZD vs VSTS, WLFC, CTOS: Gross Margin % Comparison
For the Rental & Leasing Services subindustry, PROG 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.
PROG Holdings Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, PROG Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where PROG 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.
PROG Holdings (FRA:AZD) has a Gross Margin % of 91.58% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on PROG Holdings and its competitors. This is 32% below median its historical median of 134.25. Over the past decade, PROG Holdings' Gross Margin % has ranged from 90.80 to 178.51. According to the industry distribution chart, PROG Holdings ranks #34 out of 1007 companies in the Business Services industry, placing it in the top 3.4%.
Is PROG Holdings' Gross Margin % too high?
PROG Holdings' current Gross Margin % of 91.58% is 32% below median its 10-year median of 134.25. Over the past 10 years, this metric has ranged from a low of 90.80 to a high of 178.51. The Business Services industry median Gross Margin % is 34.50. PROG Holdings' value of 91.58% is 165.4% above this industry median. Based on the distribution chart, PROG Holdings ranks #34 out of 1007 companies in the Business Services industry, which is in the top quartile — a strong position relative to peers. Overall, PROG Holdings has a GF Score™ of 89/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does PROG Holdings' Gross Margin % compare to VSTS and WLFC?
According to the Business Services industry distribution chart, PROG Holdings ranks #34 out of 1007 companies for Gross Margin %. This places PROG Holdings in the top 3% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 34.50. PROG Holdings' value of 91.58% is 165.4% above this benchmark. Historically, PROG Holdings' own Gross Margin % has ranged from 90.80 to 178.51 over the past decade. While the company's 10-year median is 134.25 vs. the industry median of 34.50, PROG 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 Business Services company?
The median Gross Margin % among Business Services companies is 34.50, based on 1,007 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. PROG Holdings's current Gross Margin % of 91.58% is 165.4% 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 PROG Holdings and its competitors. For the Business Services industry, the median Gross Margin % is 34.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PROG Holdings's current Gross Margin % is 91.58%, which is 32% below median its own 10-year median of 134.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PROG Holdings stock overvalued right now?
Based on GuruFocus' analysis, PROG Holdings (FRA:AZD) is currently considered Modestly Overvalued. The stock's GF Value™ is €33.25, compared to a current price of €40.60 — trading 22.1% above its estimated fair value. The current Gross Margin % is 91.58%, which is 32% below median its 10-year median of 134.25 and 165.4% above the Business Services industry median of 34.50. PROG Holdings' overall GF Score™ is 89/100 with 8 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 PROG Holdings (FRA:AZD), the current Gross Margin % is 91.58% 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 PROG Holdings (FRA:AZD) Overvalued in 2026?
Based on GuruFocus' analysis, PROG Holdings stock appears to be overvalued.
The current stock price of €40.60 is trading 22.1% above its estimated GF Value™ of €33.25.
GuruFocus considers PROG Holdings to be Modestly Overvalued.
Key valuation signals for FRA:AZD:
Gross Margin %: 91.58% (32% below median its 10-year median of 134.25)
GF Value™: €33.25 vs. price of €40.60 (22.1% above fair value)
Industry Position: 165.4% above the Business Services median (#34 of 1007)
No single metric tells the full story. See the FRA:AZD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PROG Holdings Inc is a financial technology holding company that provides transparent and competitive payment options to consumers. The company has two reportable segments: Progressive Leasing, an in-store, app-based, and e-commerce point-of-sale lease-to-own solutions provider; and Vive Financial (Vive), an omnichannel provider of second-look revolving credit products. The majority of the revenue of the company is earned through the Progressive Leasing segment.
89GF Score
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