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System1 GroupFRA:BBA 83 Gross Margin % is 87.61% as of Mar. 2026, which is 4% above its 10-year median of 84.23. GuruFocus rates FRA:BBA with a GF Score™ of 83/100 and a GF Value™ of €4.56 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 941 Media - Diversified companies, System1 Group ranks better than 91.18% on this metric.
The historical rank and industry rank for System1 Group's Gross Margin % or its related term are showing as below:
FRA:BBA'
s Gross Margin % Range Over the Past 10 Years
Min: 81.97 Med: 84.23 Max: 87.8
Current: 87.32
During the past 13 years, the highestGross Margin % of System1 Group was 87.80%. The lowest was 81.97%. And the median was 84.23%.
FRA:BBA's Gross Margin % is ranked better than 91.18% of 941
companies
in the Media - Diversified industry
Industry Median: 38.99
vs FRA:BBA: 87.32
System1 Group had a gross margin of 87.61% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for System1 Group was 1.10% per year.
System1 Group (FRA:BBA) 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
System1 Group had a gross margin of 87.61% 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.
System1 Group Gross Margin % Related Terms
System1 Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for System1 Group'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:BBA vs APP, OMC, TTD: Gross Margin % Comparison
For the Advertising Agencies subindustry, System1 Group'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.
System1 Group Gross Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, System1 Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where System1 Group'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.
System1 Group (FRA:BBA) has a Gross Margin % of 87.61% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on System1 Group and its competitors. This is near median its historical median of 84.23. Over the past decade, System1 Group's Gross Margin % has ranged from 81.97 to 87.80. According to the industry distribution chart, System1 Group ranks #83 out of 941 companies in the Media - Diversified industry, placing it in the top 8.8%.
Is System1 Group's Gross Margin % too high?
System1 Group's current Gross Margin % of 87.61% is near median its 10-year median of 84.23. Over the past 10 years, this metric has ranged from a low of 81.97 to a high of 87.80. The Media - Diversified industry median Gross Margin % is 38.99. System1 Group's value of 87.61% is 124.7% above this industry median. Based on the distribution chart, System1 Group ranks #83 out of 941 companies in the Media - Diversified industry, which is in the top quartile — a strong position relative to peers. Overall, System1 Group has a GF Score™ of 83/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does System1 Group's Gross Margin % compare to APP and OMC?
According to the Media - Diversified industry distribution chart, System1 Group ranks #83 out of 941 companies for Gross Margin %. This places System1 Group in the top 9% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 38.99. System1 Group's value of 87.61% is 124.7% above this benchmark. Historically, System1 Group's own Gross Margin % has ranged from 81.97 to 87.80 over the past decade. While the company's 10-year median is 84.23 vs. the industry median of 38.99, System1 Group 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 38.99, based on 941 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. System1 Group's current Gross Margin % of 87.61% is 124.7% 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 System1 Group and its competitors. For the Media - Diversified industry, the median Gross Margin % is 38.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. System1 Group's current Gross Margin % is 87.61%, which is near median its own 10-year median of 84.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is System1 Group stock overvalued right now?
Based on GuruFocus' analysis, System1 Group (FRA:BBA) is currently considered Modestly Undervalued. The stock's GF Value™ is €4.56, compared to a current price of €3.76 — trading 17.5% below its estimated fair value. The current Gross Margin % is 87.61%, which is near median its 10-year median of 84.23 and 124.7% above the Media - Diversified industry median of 38.99. System1 Group's overall GF Score™ is 83/100 with 2 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 System1 Group (FRA:BBA), the current Gross Margin % is 87.61% 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 System1 Group (FRA:BBA) Overvalued in 2026?
Based on GuruFocus' analysis, System1 Group stock appears to be undervalued.
The current stock price of €3.76 is trading 17.5% below its estimated GF Value™ of €4.56.
GuruFocus considers System1 Group to be Modestly Undervalued.
Key valuation signals for FRA:BBA:
Gross Margin %: 87.61% (near median its 10-year median of 84.23)
GF Value™: €4.56 vs. price of €3.76 (17.5% below fair value)
Industry Position: 124.7% above the Media - Diversified median (#83 of 941)
No single metric tells the full story. See the FRA:BBA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
System1 Group PLC is engaged in providing market research data and insight services. The company's geographical segments include the United States of America, Latin America (LatAm), the United Kingdom, the Rest Of Europe, and the Asia Pacific (APAC) region. A majority of its revenue is generated from its business in the United Kingdom.
83GF 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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