Cogent Communications HoldingsFRA:OGM1 -7.19%62 Gross Margin % is 45.97% as of Mar. 2026, which is 20% below its 10-year median of 57.34. GuruFocus rates FRA:OGM1 with a GF Score™ of 62/100 and a GF Value™ of €51.93 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 342 Telecommunication Services companies, Cogent Communications Holdings ranks worse than 56.14% on this metric.
FRA:OGM1's Gross Margin % is ranked worse than 56.14% of 342
companies
in the Telecommunication Services industry
Industry Median: 51.415
vs FRA:OGM1: 45.58
Cogent Communications Holdings had a gross margin of 45.97% for the quarter that ended in Mar. 2026 => Durable competitive advantage
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
Cogent Communications Holdings had a gross margin of 45.97% 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.
Cogent Communications Holdings Gross Margin % Related Terms
Cogent Communications Holdings 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:OGM1 vs OPTU, GLIBA, SHEN: Gross Margin % Comparison
For the Telecom Services subindustry, Cogent Communications Holdings'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.
Cogent Communications Holdings Gross Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Cogent Communications Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Cogent Communications Holdings'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.
Cogent Communications Holdings (FRA:OGM1) has a Gross Margin % of 45.97% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Cogent Communications Holdings and its competitors. This is 20% below median its historical median of 57.34. Over the past decade, Cogent Communications Holdings' Gross Margin % has ranged from 38.05 to 61.95. According to the industry distribution chart, Cogent Communications Holdings ranks #192 out of 342 companies in the Telecommunication Services industry, placing it in the top 56.1%.
Is Cogent Communications Holdings' Gross Margin % too high?
Cogent Communications Holdings' current Gross Margin % of 45.97% is 20% below median its 10-year median of 57.34. Over the past 10 years, this metric has ranged from a low of 38.05 to a high of 61.95. The Telecommunication Services industry median Gross Margin % is 51.42. Cogent Communications Holdings' value of 45.97% is 10.6% below this industry median. Based on the distribution chart, Cogent Communications Holdings ranks #192 out of 342 companies in the Telecommunication Services industry, which is below the industry midpoint. Overall, Cogent Communications Holdings 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 Cogent Communications Holdings' Gross Margin % compare to OPTU and GLIBA?
According to the Telecommunication Services industry distribution chart, Cogent Communications Holdings ranks #192 out of 342 companies for Gross Margin %. This places Cogent Communications Holdings in the lower half of its industry. The industry median Gross Margin % is 51.42. Cogent Communications Holdings' value of 45.97% is 10.6% below this benchmark. Historically, Cogent Communications Holdings' own Gross Margin % has ranged from 38.05 to 61.95 over the past decade. While the company's 10-year median is 57.34 vs. the industry median of 51.42, Cogent Communications Holdings 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 Telecommunication Services company?
The median Gross Margin % among Telecommunication Services companies is 51.42, based on 342 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. Cogent Communications Holdings's current Gross Margin % of 45.97% is 10.6% 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 Cogent Communications Holdings and its competitors. For the Telecommunication Services industry, the median Gross Margin % is 51.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cogent Communications Holdings's current Gross Margin % is 45.97%, which is 20% below median its own 10-year median of 57.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cogent Communications Holdings stock overvalued right now?
Based on GuruFocus' analysis, Cogent Communications Holdings (FRA:OGM1) is currently considered Possible Value Trap. The stock's GF Value™ is €51.93, compared to a current price of €10.71 — trading 79.4% below its estimated fair value. The current Gross Margin % is 45.97%, which is 20% below median its 10-year median of 57.34 and 10.6% below the Telecommunication Services industry median of 51.42. Cogent Communications Holdings' 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 Cogent Communications Holdings (FRA:OGM1), the current Gross Margin % is 45.97% 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 Cogent Communications Holdings (FRA:OGM1) Overvalued in 2026?
Based on GuruFocus' analysis, Cogent Communications Holdings stock appears to be undervalued.
The current stock price of €10.71 is trading 79.4% below its estimated GF Value™ of €51.93.
GuruFocus considers Cogent Communications Holdings to be Possible Value Trap.
Key valuation signals for FRA:OGM1:
Gross Margin %: 45.97% (20% below median its 10-year median of 57.34)
GF Value™: €51.93 vs. price of €10.71 (79.4% below fair value)
Industry Position: 10.6% below the Telecommunication Services median (#192 of 342)
No single metric tells the full story. See the FRA:OGM1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cogent Communications Holdings Business Description
Cogent carries over one-fifth of the world's internet traffic on its network, providing high-capacity services to businesses. Cogent's corporate customers are in high-rise office buildings, where the firm provides two types of connections: dedicated internet access, which connects them to the internet, and virtual private networking, which offers an internal network for employees in different locations. Cogent's corporate customers are exclusively in North America and account for nearly half of the firm's revenue. Cogent's netcentric customers include internet service providers and content providers, to which Cogent provides internet transit. They hand traffic to Cogent in data centers and rely on Cogent to deliver it. About half of netcentric revenue is from outside the US.
62GF Score
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