NetgemFRA:NGP +0.49%44 Gross Margin % is 72.53% as of Dec. 2025, which is 35% above its 10-year median of 53.84. GuruFocus rates FRA:NGP with a GF Score™ of 44/100 and a GF Value™ of €0.84 (Fairly Valued). The stock has 5 warning signs investors should review. Among 2,454 Hardware companies, Netgem ranks better than 97.35% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Netgem's Gross Profit for the
six
months ended in Dec. 2025 was €11.87 Mil. Netgem's Revenue for the
six
months ended in Dec. 2025 was €16.36 Mil. Therefore, Netgem's Gross Margin % for the quarter that ended in Dec. 2025 was 72.53%.
The historical rank and industry rank for Netgem's Gross Margin % or its related term are showing as below:
FRA:NGP'
s Gross Margin % Range Over the Past 10 Years
Min: 37 Med: 53.84 Max: 71.93
Current: 71.93
During the past 13 years, the highestGross Margin % of Netgem was 71.93%. The lowest was 37.00%. And the median was 53.84%.
FRA:NGP's Gross Margin % is ranked better than 97.35% of 2454
companies
in the Hardware industry
Industry Median: 24.565
vs FRA:NGP: 71.93
Netgem had a gross margin of 72.53% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Netgem was 6.00% per year.
Netgem (FRA:NGP) 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
Netgem had a gross margin of 72.53% 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.
Netgem Gross Margin % Related Terms
Netgem Gross Margin % Historical Data
* Premium members only.
The historical data trend for Netgem'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:NGP vs CSCO, CIEN, MSI: Gross Margin % Comparison
For the Communication Equipment subindustry, Netgem'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.
Netgem Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Netgem's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Netgem'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.
Netgem (FRA:NGP) has a Gross Margin % of 72.53% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Netgem and its competitors. This is 35% above median its historical median of 53.84. Over the past decade, Netgem's Gross Margin % has ranged from 37.00 to 71.93. According to the industry distribution chart, Netgem ranks #65 out of 2454 companies in the Hardware industry, placing it in the top 2.6%.
Is Netgem's Gross Margin % too high?
Netgem's current Gross Margin % of 72.53% is 35% above median its 10-year median of 53.84. Over the past 10 years, this metric has ranged from a low of 37.00 to a high of 71.93. The Hardware industry median Gross Margin % is 24.57. Netgem's value of 72.53% is 195.3% above this industry median. Based on the distribution chart, Netgem ranks #65 out of 2454 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Netgem has a GF Score™ of 44/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Netgem's Gross Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Netgem ranks #65 out of 2454 companies for Gross Margin %. This places Netgem in the top 3% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 24.57. Netgem's value of 72.53% is 195.3% above this benchmark. Historically, Netgem's own Gross Margin % has ranged from 37.00 to 71.93 over the past decade. While the company's 10-year median is 53.84 vs. the industry median of 24.57, Netgem 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 Hardware company?
The median Gross Margin % among Hardware companies is 24.57, based on 2,454 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. Netgem's current Gross Margin % of 72.53% is 195.3% 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 Netgem and its competitors. For the Hardware industry, the median Gross Margin % is 24.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Netgem's current Gross Margin % is 72.53%, which is 35% above median its own 10-year median of 53.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Netgem stock overvalued right now?
Based on GuruFocus' analysis, Netgem (FRA:NGP) is currently considered Fairly Valued. The stock's GF Value™ is €0.84, compared to a current price of €0.82 — trading 2.1% below its estimated fair value. The current Gross Margin % is 72.53%, which is 35% above median its 10-year median of 53.84 and 195.3% above the Hardware industry median of 24.57. Netgem's overall GF Score™ is 44/100 with 5 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 Netgem (FRA:NGP), the current Gross Margin % is 72.53% 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 Netgem (FRA:NGP) Overvalued in 2026?
Based on GuruFocus' analysis, Netgem stock appears to be undervalued.
The current stock price of €0.82 is trading 2.1% below its estimated GF Value™ of €0.84.
GuruFocus considers Netgem to be Fairly Valued.
Key valuation signals for FRA:NGP:
Gross Margin %: 72.53% (35% above median its 10-year median of 53.84)
GF Value™: €0.84 vs. price of €0.82 (2.1% below fair value)
Industry Position: 195.3% above the Hardware median (#65 of 2454)
No single metric tells the full story. See the FRA:NGP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Netgem SA provides a complete Entertainment software. The Group offers hardware and software technologies to telecommunication operators worldwide. It also provides hardware services including the end-to-end design, development and production of set-top boxes.
44GF Score
Get the complete analysis for FRA:NGP
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:NGP has been successfully added to your 
