Net digital AGFRA:VRL -2.74%7 Gross Margin % is 15.68% as of Jun. 2025, which is 67% below its 10-year median of 47.66. GuruFocus rates FRA:VRL with a GF Score™ of 7/100 and a GF Value™ of €5.10 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 2,681 Software companies, Net digital AG ranks worse than 60.09% on this metric.
The historical rank and industry rank for Net digital AG's Gross Margin % or its related term are showing as below:
FRA:VRL'
s Gross Margin % Range Over the Past 10 Years
Min: -642.86 Med: 47.66 Max: 80
Current: 32.65
During the past 9 years, the highestGross Margin % of Net digital AG was 80.00%. The lowest was -642.86%. And the median was 47.66%.
FRA:VRL's Gross Margin % is ranked worse than 60.09% of 2681
companies
in the Software industry
Industry Median: 40.45
vs FRA:VRL: 32.65
Net digital AG had a gross margin of 15.68% for the quarter that ended in Jun. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Net digital AG was 0.00% per year.
Net digital AG (FRA:VRL) 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
Net digital AG had a gross margin of 15.68% for the quarter that ended in Jun. 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.
Net digital AG Gross Margin % Related Terms
Net digital AG Gross Margin % Historical Data
* Premium members only.
The historical data trend for Net digital 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:VRL vs CRM, SHOP, UBER: Gross Margin % Comparison
For the Software - Application subindustry, Net digital 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.
Net digital AG Gross Margin % vs Software Industry
For the Software industry and Technology sector, Net digital AG's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Net digital 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.
Net digital AG (FRA:VRL) has a Gross Margin % of 15.68% as of Jun. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Net digital AG and its competitors. This is 67% below median its historical median of 47.66. According to the industry distribution chart, Net digital AG ranks #1611 out of 2681 companies in the Software industry, placing it in the top 60.1%.
Is Net digital AG's Gross Margin % too high?
Net digital AG's current Gross Margin % of 15.68% is 67% below median its 10-year median of 47.66. The Software industry median Gross Margin % is 40.45. Net digital AG's value of 15.68% is 61.2% below this industry median. Based on the distribution chart, Net digital AG ranks #1611 out of 2681 companies in the Software industry, which is below the industry midpoint. Overall, Net digital AG has a GF Score™ of 7/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Net digital AG's Gross Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, Net digital AG ranks #1611 out of 2681 companies for Gross Margin %. This places Net digital AG in the lower half of its industry. The industry median Gross Margin % is 40.45. Net digital AG's value of 15.68% is 61.2% below this benchmark. While the company's 10-year median is 47.66 vs. the industry median of 40.45, Net digital 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 2,681 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. Net digital AG's current Gross Margin % of 15.68% is 61.2% 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 Net digital 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. Net digital AG's current Gross Margin % is 15.68%, which is 67% below median its own 10-year median of 47.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Net digital AG stock overvalued right now?
Based on GuruFocus' analysis, Net digital AG (FRA:VRL) is currently considered Significantly Overvalued. The stock's GF Value™ is €5.10, compared to a current price of €14.20 — trading 178.4% above its estimated fair value. The current Gross Margin % is 15.68%, which is 67% below median its 10-year median of 47.66 and 61.2% below the Software industry median of 40.45. Net digital AG's overall GF Score™ is 7/100 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 Net digital AG (FRA:VRL), the current Gross Margin % is 15.68% as of Jun. 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 Net digital AG (FRA:VRL) Overvalued in 2026?
Based on GuruFocus' analysis, Net digital AG stock appears to be overvalued.
The current stock price of €14.20 is trading 178.4% above its estimated GF Value™ of €5.10.
GuruFocus considers Net digital AG to be Significantly Overvalued.
Key valuation signals for FRA:VRL:
Gross Margin %: 15.68% (67% below median its 10-year median of 47.66)
GF Value™: €5.10 vs. price of €14.20 (178.4% above fair value)
Industry Position: 61.2% below the Software median (#1611 of 2681)
No single metric tells the full story. See the FRA:VRL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Net digital AG is a group of companies that partners with numerous medium-sized and large companies in the telecommunications, media, and entertainment sectors, as well as public transport companies. The group develops technology platforms for Global and customized digital payment solutions with a focus on digital content distribution. Its services include Global Payment Services, Mobile Payment Services, Content Distribution Services, Artificial Intelligence Solutions, Communication Services, and TV Enabling Services.
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