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
FRNT Financial had a gross margin of 36.25% for the quarter that ended in Mar. 2026 => Competition eroding margins
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.
FRNT Financial Gross Margin % Related Terms
FRNT Financial Gross Margin % Historical Data
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The historical data trend for FRNT Financial'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.
For the Capital Markets subindustry, FRNT Financial'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.
FRNT Financial Gross Margin % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, FRNT Financial's Gross Margin % distribution charts can be found below:
* The bar in red indicates where FRNT Financial'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.
FRNT Financial (FRFLF) has a Gross Margin % of 36.25% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on FRNT Financial and its competitors. According to the industry distribution chart, FRNT Financial ranks #478 out of 620 companies in the Capital Markets industry, placing it in the top 77.1%.
Is FRNT Financial's Gross Margin % too high?
FRNT Financial's current Gross Margin % is 36.25%. The Capital Markets industry median Gross Margin % is 49.63. FRNT Financial's value of 36.25% is 27% below this industry median. Based on the distribution chart, FRNT Financial ranks #478 out of 620 companies in the Capital Markets industry, which is in the bottom quartile relative to peers. Overall, FRNT Financial has a GF Score™ of 20/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does FRNT Financial's Gross Margin % compare to MS and GS?
According to the Capital Markets industry distribution chart, FRNT Financial ranks #478 out of 620 companies for Gross Margin %. This places FRNT Financial in the lower half of its industry. The industry median Gross Margin % is 49.63. FRNT Financial's value of 36.25% is 27% below this benchmark. 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 Capital Markets company?
The median Gross Margin % among Capital Markets companies is 49.63, based on 620 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. FRNT Financial's current Gross Margin % of 36.25% is 27% 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 FRNT Financial and its competitors. For the Capital Markets industry, the median Gross Margin % is 49.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. FRNT Financial's current Gross Margin % is 36.25%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is FRNT Financial stock overvalued right now?
Based on GuruFocus' analysis, FRNT Financial (FRFLF) is currently considered Possible Value Trap. The stock's GF Value™ is $0.31, compared to a current price of $0.08 — trading 74.2% below its estimated fair value. The current Gross Margin % is 36.25% and 27% below the Capital Markets industry median of 49.63. FRNT Financial's overall GF Score™ is 20/100 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 FRNT Financial (FRFLF), the current Gross Margin % is 36.25% 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 FRNT Financial (FRFLF) Overvalued in 2026?
Based on GuruFocus' analysis, FRNT Financial stock appears to be undervalued.
The current stock price of $0.08 is trading 74.2% below its estimated GF Value™ of $0.31.
GuruFocus considers FRNT Financial to be Possible Value Trap.
Key valuation signals for FRFLF:
Gross Margin %: 36.25%
GF Value™: $0.31 vs. price of $0.08 (74.2% below fair value)
Industry Position: 27% below the Capital Markets median (#478 of 620)
No single metric tells the full story. See the FRFLF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
FRNT Financial Inc is a next-generation institutional sales and trading platform. It has one segment focused around developing and offering its capital market trading platform to institutional investors. The Company is a financial technology company that provides a capital markets trading platform for institutional investors to access alternative trading opportunities.
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