Digital Workforce ServicesFRA:DQ4 +6.78%62 Gross Margin % is 25.94% as of Dec. 2025, which is 49% below its 10-year median of 50.53. GuruFocus rates FRA:DQ4 with a GF Score™ of 62/100 and a GF Value™ of €4.07 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 2,678 Software companies, Digital Workforce Services ranks worse than 50.37% on this metric.
Digital Workforce Services (FRA:DQ4) 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
Digital Workforce Services had a gross margin of 25.94% for the quarter that ended in Dec. 2025 => Competition eroding margins
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.
Digital Workforce Services Gross Margin % Related Terms
Digital Workforce Services Gross Margin % Historical Data
* 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:DQ4 vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, Digital Workforce Services'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.
Digital Workforce Services Gross Margin % vs Software Industry
For the Software industry and Technology sector, Digital Workforce Services's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Digital Workforce Services'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.
Digital Workforce Services (FRA:DQ4) has a Gross Margin % of 25.94% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Digital Workforce Services and its competitors. This is 49% below median its historical median of 50.53. Over the past decade, Digital Workforce Services' Gross Margin % has ranged from 24.47 to 58.46. According to the industry distribution chart, Digital Workforce Services ranks #1349 out of 2678 companies in the Software industry, placing it in the top 50.4%.
Is Digital Workforce Services' Gross Margin % too high?
Digital Workforce Services' current Gross Margin % of 25.94% is 49% below median its 10-year median of 50.53. Over the past 10 years, this metric has ranged from a low of 24.47 to a high of 58.46. The Software industry median Gross Margin % is 40.46. Digital Workforce Services' value of 25.94% is 35.9% below this industry median. Based on the distribution chart, Digital Workforce Services ranks #1349 out of 2678 companies in the Software industry, which is below the industry midpoint. Overall, Digital Workforce Services 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 Digital Workforce Services' Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Digital Workforce Services ranks #1349 out of 2678 companies for Gross Margin %. This places Digital Workforce Services in the lower half of its industry. The industry median Gross Margin % is 40.46. Digital Workforce Services' value of 25.94% is 35.9% below this benchmark. Historically, Digital Workforce Services' own Gross Margin % has ranged from 24.47 to 58.46 over the past decade. While the company's 10-year median is 50.53 vs. the industry median of 40.46, Digital Workforce Services has consistently been below 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 40.46, based on 2,678 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. Digital Workforce Services's current Gross Margin % of 25.94% is 35.9% below 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 Digital Workforce Services and its competitors. For the Software industry, the median Gross Margin % is 40.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Digital Workforce Services's current Gross Margin % is 25.94%, which is 49% below median its own 10-year median of 50.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Digital Workforce Services stock overvalued right now?
Based on GuruFocus' analysis, Digital Workforce Services (FRA:DQ4) is currently considered Possible Value Trap. The stock's GF Value™ is €4.07, compared to a current price of €2.52 — trading 38.1% below its estimated fair value. The current Gross Margin % is 25.94%, which is 49% below median its 10-year median of 50.53 and 35.9% below the Software industry median of 40.46. Digital Workforce Services' overall GF Score™ is 62/100 with 7 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 Digital Workforce Services (FRA:DQ4), the current Gross Margin % is 25.94% 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 Digital Workforce Services (FRA:DQ4) Overvalued in 2026?
Based on GuruFocus' analysis, Digital Workforce Services stock appears to be undervalued.
The current stock price of €2.52 is trading 38.1% below its estimated GF Value™ of €4.07.
GuruFocus considers Digital Workforce Services to be Possible Value Trap.
Key valuation signals for FRA:DQ4:
Gross Margin %: 25.94% (49% below median its 10-year median of 50.53)
GF Value™: €4.07 vs. price of €2.52 (38.1% below fair value)
Industry Position: 35.9% below the Software median (#1349 of 2678)
No single metric tells the full story. See the FRA:DQ4 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Digital Workforce Services PLC provides business automation and technology solutions. With the Digital Workforce Outsmart platform and services including Enterprise AI agents organizations transform knowledge work, reduce costs, accelerate digitization, grow revenue, and improve customer experience. Its Design Services include Business Process Study, Process Redesign for Automation, and Advisory Se; and its Automation Delivery Services include IA Talent Augmentation, Implementation Projects, and Training and Mentoring. Geographically it operates in Finland, Sweden, Other Nordics, UK, Other EU, and Outside EU; deriving majority of the revenue from Finland.
62GF Score
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