Information Services GroupFRA:ZZG -1.10%69 Gross Margin % is 43.12% as of Mar. 2026, which is 7% above its 10-year median of 40.29. GuruFocus rates FRA:ZZG with a GF Score™ of 69/100 and a GF Value™ of €3.31 (Fairly Valued). The stock has 4 warning signs investors should review. Among 2,677 Software companies, Information Services Group ranks better than 52.93% on this metric.
Information Services Group (FRA:ZZG) 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
Information Services Group had a gross margin of 43.12% 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.
Information Services Group Gross Margin % Related Terms
Information Services Group 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:ZZG vs CNDT, WYY, UIS: Gross Margin % Comparison
For the Information Technology Services subindustry, Information Services 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.
Information Services Group Gross Margin % vs Software Industry
For the Software industry and Technology sector, Information Services Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Information Services 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.
Information Services Group (FRA:ZZG) has a Gross Margin % of 43.12% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Information Services Group and its competitors. This is near median its historical median of 40.29. Over the past decade, Information Services Group's Gross Margin % has ranged from 38.53 to 43.09. According to the industry distribution chart, Information Services Group ranks #1260 out of 2677 companies in the Software industry, placing it in the top 47.1%.
Is Information Services Group's Gross Margin % too high?
Information Services Group's current Gross Margin % of 43.12% is near median its 10-year median of 40.29. Over the past 10 years, this metric has ranged from a low of 38.53 to a high of 43.09. The Software industry median Gross Margin % is 40.49. Information Services Group's value of 43.12% is 6.5% above this industry median. Based on the distribution chart, Information Services Group ranks #1260 out of 2677 companies in the Software industry, which is above the industry midpoint. Overall, Information Services Group has a GF Score™ of 69/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Information Services Group's Gross Margin % compare to CNDT and WYY?
According to the Software industry distribution chart, Information Services Group ranks #1260 out of 2677 companies for Gross Margin %. This puts Information Services Group in the upper half of its industry. The industry median Gross Margin % is 40.49. Information Services Group's value of 43.12% is 6.5% above this benchmark. Historically, Information Services Group's own Gross Margin % has ranged from 38.53 to 43.09 over the past decade. While the company's 10-year median is 40.29 vs. the industry median of 40.49, Information Services 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 40.49, based on 2,677 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. Information Services Group's current Gross Margin % of 43.12% is 6.5% 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 Information Services Group and its competitors. For the Software industry, the median Gross Margin % is 40.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Information Services Group's current Gross Margin % is 43.12%, which is near median its own 10-year median of 40.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Information Services Group stock overvalued right now?
Based on GuruFocus' analysis, Information Services Group (FRA:ZZG) is currently considered Fairly Valued. The stock's GF Value™ is €3.31, compared to a current price of €3.60 — trading 8.8% above its estimated fair value. The current Gross Margin % is 43.12%, which is near median its 10-year median of 40.29 and 6.5% above the Software industry median of 40.49. Information Services Group's overall GF Score™ is 69/100 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 Information Services Group (FRA:ZZG), the current Gross Margin % is 43.12% 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 Information Services Group (FRA:ZZG) Overvalued in 2026?
Based on GuruFocus' analysis, Information Services Group stock appears to be overvalued.
The current stock price of €3.60 is trading 8.8% above its estimated GF Value™ of €3.31.
GuruFocus considers Information Services Group to be Fairly Valued.
Key valuation signals for FRA:ZZG:
Gross Margin %: 43.12% (near median its 10-year median of 40.29)
GF Value™: €3.31 vs. price of €3.60 (8.8% above fair value)
Industry Position: 6.5% above the Software median (#1260 of 2677)
No single metric tells the full story. See the FRA:ZZG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Information Services Group Inc is an AI-centered technology research and advisory firm providing digital transformation and technology advisory services that help organizations optimize performance, reduce costs, and accelerate innovation. The Company's expertise includes sourcing advisory, cloud and data analytics, managed governance and risk services, network and software advisory, technology strategy and operations design, change management, and market intelligence, serving both private- and public-sector clients globally. It operates in one segment, fact-based sourcing advisory services, and operates principally in the Americas, with generate maximum revenue in Europe and the Asia Pacific.
69GF Score
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