Kps AGFRA:KSC +3.59%44 Gross Margin % is 11.66% as of Sep. 2025, which is 52% below its 10-year median of 24.15. GuruFocus rates FRA:KSC with a GF Score™ of 44/100 and a GF Value™ of €0.85 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 2,685 Software companies, Kps AG ranks worse than 86.74% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Kps AG's Gross Profit for the
six
months ended in Sep. 2025 was €6.6 Mil. Kps AG's Revenue for the
six
months ended in Sep. 2025 was €57.0 Mil. Therefore, Kps AG's Gross Margin % for the quarter that ended in Sep. 2025 was 11.66%.
Warning Sign:
Kps AG gross margin has been in long-term decline. The average rate of decline per year is -11.8%.
The historical rank and industry rank for Kps AG's Gross Margin % or its related term are showing as below:
FRA:KSC'
s Gross Margin % Range Over the Past 10 Years
Min: 14.45 Med: 24.15 Max: 29.9
Current: 14.45
During the past 13 years, the highestGross Margin % of Kps AG was 29.90%. The lowest was 14.45%. And the median was 24.15%.
FRA:KSC's Gross Margin % is ranked worse than 86.74% of 2685
companies
in the Software industry
Industry Median: 40.45
vs FRA:KSC: 14.45
Kps AG had a gross margin of 11.66% for the quarter that ended in Sep. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Kps AG was -11.80% per year.
Kps AG (FRA:KSC) 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
Kps AG had a gross margin of 11.66% for the quarter that ended in Sep. 2025 => No sustainable 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.
Kps AG Gross Margin % Related Terms
Kps AG Gross Margin % Historical Data
* Premium members only.
The historical data trend for Kps AG'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:KSC vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, Kps AG'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.
Kps AG Gross Margin % vs Software Industry
For the Software industry and Technology sector, Kps AG's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Kps AG'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.
Kps AG (FRA:KSC) has a Gross Margin % of 11.66% as of Sep. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Kps AG and its competitors. This is 52% below median its historical median of 24.15. Over the past decade, Kps AG's Gross Margin % has ranged from 14.45 to 29.90. According to the industry distribution chart, Kps AG ranks #2329 out of 2685 companies in the Software industry, placing it in the top 86.7%.
Is Kps AG's Gross Margin % too high?
Kps AG's current Gross Margin % of 11.66% is 52% below median its 10-year median of 24.15. Over the past 10 years, this metric has ranged from a low of 14.45 to a high of 29.90. The Software industry median Gross Margin % is 40.45. Kps AG's value of 11.66% is 71.2% below this industry median. Based on the distribution chart, Kps AG ranks #2329 out of 2685 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Kps AG has a GF Score™ of 44/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Kps AG's Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Kps AG ranks #2329 out of 2685 companies for Gross Margin %. This places Kps AG in the lower half of its industry. The industry median Gross Margin % is 40.45. Kps AG's value of 11.66% is 71.2% below this benchmark. Historically, Kps AG's own Gross Margin % has ranged from 14.45 to 29.90 over the past decade. While the company's 10-year median is 24.15 vs. the industry median of 40.45, Kps AG 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 40.45, 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. Kps AG's current Gross Margin % of 11.66% is 71.2% 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 Kps AG 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. Kps AG's current Gross Margin % is 11.66%, which is 52% below median its own 10-year median of 24.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kps AG stock overvalued right now?
Based on GuruFocus' analysis, Kps AG (FRA:KSC) is currently considered Possible Value Trap. The stock's GF Value™ is €0.85, compared to a current price of €0.26 — trading 69.4% below its estimated fair value. The current Gross Margin % is 11.66%, which is 52% below median its 10-year median of 24.15 and 71.2% below the Software industry median of 40.45. Kps AG's overall GF Score™ is 44/100 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 Kps AG (FRA:KSC), the current Gross Margin % is 11.66% as of Sep. 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 Kps AG (FRA:KSC) Overvalued in 2026?
Based on GuruFocus' analysis, Kps AG stock appears to be undervalued.
The current stock price of €0.26 is trading 69.4% below its estimated GF Value™ of €0.85.
GuruFocus considers Kps AG to be Possible Value Trap.
Key valuation signals for FRA:KSC:
Gross Margin %: 11.66% (52% below median its 10-year median of 24.15)
GF Value™: €0.85 vs. price of €0.26 (69.4% below fair value)
Industry Position: 71.2% below the Software median (#2329 of 2685)
No single metric tells the full story. See the FRA:KSC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kps AG is a German-based company that holds and consults information technology companies that provide business transformation and process optimization services. Its operating segments include Management Consulting / Transformation Consulting, System Integration, and Products /Licenses. The majority of its revenue comes from the Management consulting segment, which includes providing support for customers and developing concepts and solutions taking into account process, logistic, financial, and systems integration. The company's revenue includes the provision of services, revenue from maintenance contracts, and the sale of software. The company carries its operations in Germany, Switzerland, Scandinavia, the United Kingdom, Benelux, Spain, and others.
44GF Score
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