Softing AGFRA:SYT -2.32%65 Gross Margin % is 19.33% as of Mar. 2026, which is 18% below its 10-year median of 23.70. GuruFocus rates FRA:SYT with a GF Score™ of 65/100 and a GF Value™ of €3.73 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 2,680 Software companies, Softing AG ranks worse than 72.95% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Softing AG's Gross Profit for the
three
months ended in Mar. 2026 was €4.16 Mil. Softing AG's Revenue for the
three
months ended in Mar. 2026 was €21.52 Mil. Therefore, Softing AG's Gross Margin % for the quarter that ended in Mar. 2026 was 19.33%.
The historical rank and industry rank for Softing AG's Gross Margin % or its related term are showing as below:
FRA:SYT'
s Gross Margin % Range Over the Past 10 Years
Min: 22.52 Med: 23.7 Max: 28.54
Current: 24
During the past 13 years, the highestGross Margin % of Softing AG was 28.54%. The lowest was 22.52%. And the median was 23.70%.
FRA:SYT's Gross Margin % is ranked worse than 72.95% of 2680
companies
in the Software industry
Industry Median: 40.45
vs FRA:SYT: 24.00
Softing AG had a gross margin of 19.33% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Softing AG was 2.00% per year.
Softing AG (FRA:SYT) 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
Softing AG had a gross margin of 19.33% for the quarter that ended in Mar. 2026 => 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.
Softing AG Gross Margin % Related Terms
Softing AG Gross Margin % Historical Data
* Premium members only.
The historical data trend for Softing 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:SYT vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, Softing 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.
Softing AG Gross Margin % vs Software Industry
For the Software industry and Technology sector, Softing AG's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Softing 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.
Softing AG (FRA:SYT) has a Gross Margin % of 19.33% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Softing AG and its competitors. This is 18% below median its historical median of 23.70. Over the past decade, Softing AG's Gross Margin % has ranged from 22.52 to 28.54. According to the industry distribution chart, Softing AG ranks #1955 out of 2680 companies in the Software industry, placing it in the top 72.9%.
Is Softing AG's Gross Margin % too high?
Softing AG's current Gross Margin % of 19.33% is 18% below median its 10-year median of 23.70. Over the past 10 years, this metric has ranged from a low of 22.52 to a high of 28.54. The Software industry median Gross Margin % is 40.45. Softing AG's value of 19.33% is 52.2% below this industry median. Based on the distribution chart, Softing AG ranks #1955 out of 2680 companies in the Software industry, which is below the industry midpoint. Overall, Softing AG has a GF Score™ of 65/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Softing AG's Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Softing AG ranks #1955 out of 2680 companies for Gross Margin %. This places Softing AG in the lower half of its industry. The industry median Gross Margin % is 40.45. Softing AG's value of 19.33% is 52.2% below this benchmark. Historically, Softing AG's own Gross Margin % has ranged from 22.52 to 28.54 over the past decade. While the company's 10-year median is 23.70 vs. the industry median of 40.45, Softing 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 2,680 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. Softing AG's current Gross Margin % of 19.33% is 52.2% 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 Softing 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. Softing AG's current Gross Margin % is 19.33%, which is 18% below median its own 10-year median of 23.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Softing AG stock overvalued right now?
Based on GuruFocus' analysis, Softing AG (FRA:SYT) is currently considered Possible Value Trap. The stock's GF Value™ is €3.73, compared to a current price of €2.53 — trading 32.2% below its estimated fair value. The current Gross Margin % is 19.33%, which is 18% below median its 10-year median of 23.70 and 52.2% below the Software industry median of 40.45. Softing AG's overall GF Score™ is 65/100 with 4 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 Softing AG (FRA:SYT), the current Gross Margin % is 19.33% 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 Softing AG (FRA:SYT) Overvalued in 2026?
Based on GuruFocus' analysis, Softing AG stock appears to be undervalued.
The current stock price of €2.53 is trading 32.2% below its estimated GF Value™ of €3.73.
GuruFocus considers Softing AG to be Possible Value Trap.
Key valuation signals for FRA:SYT:
Gross Margin %: 19.33% (18% below median its 10-year median of 23.70)
GF Value™: €3.73 vs. price of €2.53 (32.2% below fair value)
Industry Position: 52.2% below the Software median (#1955 of 2680)
No single metric tells the full story. See the FRA:SYT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Softing AG is engaged in developing software, hardware, and system solutions. The business operates in segments namely, Industrial, Automotive, and IT Networks. The Industrial segment which derives the majority of revenue engages in the provision of industrial communications solutions and products for the manufacturing and process industry. The Automotive segment stands for key technologies in automotive electronics as well as such closely related areas in electronics as the commercial vehicle or agricultural machinery industry. The IT Networks segment is engaged in testing, qualifying, and certifying cabling in IT systems. Geographically, it derives the majority of its revenue from the USA.
65GF Score
Get the complete analysis for FRA:SYT
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:SYT has been successfully added to your 
