NCC GroupFRA:NZB +6.67%65 Gross Margin % is 45.94% as of Mar. 2026, which is 15% above its 10-year median of 40.10. GuruFocus rates FRA:NZB with a GF Score™ of 65/100 and a GF Value™ of €1.39 (Fairly Valued). The stock has 3 warning signs investors should review. Among 2,681 Software companies, NCC Group ranks worse than 52.07% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. NCC Group's Gross Profit for the
six
months ended in Mar. 2026 was €80.2 Mil. NCC Group's Revenue for the
six
months ended in Mar. 2026 was €174.5 Mil. Therefore, NCC Group's Gross Margin % for the quarter that ended in Mar. 2026 was 45.94%.
Warning Sign:
NCC Group PLC gross margin has been in long-term decline. The average rate of decline per year is -1.1%.
The historical rank and industry rank for NCC Group's Gross Margin % or its related term are showing as below:
FRA:NZB'
s Gross Margin % Range Over the Past 10 Years
Min: 36.32 Med: 40.1 Max: 42.12
Current: 38.6
During the past 13 years, the highestGross Margin % of NCC Group was 42.12%. The lowest was 36.32%. And the median was 40.10%.
FRA:NZB's Gross Margin % is ranked worse than 52.07% of 2681
companies
in the Software industry
Industry Median: 40.41
vs FRA:NZB: 38.60
NCC Group had a gross margin of 45.94% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for NCC Group was -1.10% per year.
NCC Group (FRA:NZB) 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
NCC Group had a gross margin of 45.94% 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.
NCC Group Gross Margin % Related Terms
NCC Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for NCC 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:NZB vs MSFT, ORCL, PLTR: Gross Margin % Comparison
For the Software - Infrastructure subindustry, NCC 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.
NCC Group Gross Margin % vs Software Industry
For the Software industry and Technology sector, NCC Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where NCC 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.
NCC Group (FRA:NZB) has a Gross Margin % of 45.94% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on NCC Group and its competitors. This is 15% above median its historical median of 40.10. Over the past decade, NCC Group's Gross Margin % has ranged from 36.32 to 42.12. According to the industry distribution chart, NCC Group ranks #1396 out of 2681 companies in the Software industry, placing it in the top 52.1%.
Is NCC Group's Gross Margin % too high?
NCC Group's current Gross Margin % of 45.94% is 15% above median its 10-year median of 40.10. Over the past 10 years, this metric has ranged from a low of 36.32 to a high of 42.12. The Software industry median Gross Margin % is 40.41. NCC Group's value of 45.94% is 13.7% above this industry median. Based on the distribution chart, NCC Group ranks #1396 out of 2681 companies in the Software industry, which is below the industry midpoint. Overall, NCC Group has a GF Score™ of 65/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does NCC Group's Gross Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, NCC Group ranks #1396 out of 2681 companies for Gross Margin %. This places NCC Group in the lower half of its industry. The industry median Gross Margin % is 40.41. NCC Group's value of 45.94% is 13.7% above this benchmark. Historically, NCC Group's own Gross Margin % has ranged from 36.32 to 42.12 over the past decade. While the company's 10-year median is 40.10 vs. the industry median of 40.41, NCC 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 Software company?
The median Gross Margin % among Software companies is 40.41, based on 2,681 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. NCC Group's current Gross Margin % of 45.94% is 13.7% 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 NCC Group and its competitors. For the Software industry, the median Gross Margin % is 40.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NCC Group's current Gross Margin % is 45.94%, which is 15% above median its own 10-year median of 40.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NCC Group stock overvalued right now?
Based on GuruFocus' analysis, NCC Group (FRA:NZB) is currently considered Fairly Valued. The stock's GF Value™ is €1.39, compared to a current price of €1.44 — trading 3.6% above its estimated fair value. The current Gross Margin % is 45.94%, which is 15% above median its 10-year median of 40.10 and 13.7% above the Software industry median of 40.41. NCC Group's overall GF Score™ is 65/100 with 3 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 NCC Group (FRA:NZB), the current Gross Margin % is 45.94% 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 NCC Group (FRA:NZB) Overvalued in 2026?
Based on GuruFocus' analysis, NCC Group stock appears to be overvalued.
The current stock price of €1.44 is trading 3.6% above its estimated GF Value™ of €1.39.
GuruFocus considers NCC Group to be Fairly Valued.
Key valuation signals for FRA:NZB:
Gross Margin %: 45.94% (15% above median its 10-year median of 40.10)
GF Value™: €1.39 vs. price of €1.44 (3.6% above fair value)
Industry Position: 13.7% above the Software median (#1396 of 2681)
No single metric tells the full story. See the FRA:NZB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NCC Group PLC is a holding company. The provision of independent advice and services to customers through the provision of software resilience and Cyber Security services. The Group reports its business segment: the Cyber Security division. The reporting segments provide distinct types of service, and within the reporting segments, the operating segment provide a homogeneous group of services. The company operates in the UK, North America, APAC, and Europe, and the majority of revenue comes from the UK.
65GF 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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