The historical rank and industry rank for Wirecard AG's Gross Margin % or its related term are showing as below:
HAM:WDI's Gross Margin % is not ranked *
in the Software industry.
Industry Median: 40.45 * Ranked among companies with meaningful Gross Margin % only.
Wirecard AG had a gross margin of 48.42% for the quarter that ended in Sep. 2019 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Wirecard AG was 0.00% per year.
Wirecard AG (HAM:WDI) 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
Wirecard AG had a gross margin of 48.42% for the quarter that ended in Sep. 2019 => 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.
Wirecard AG Gross Margin % Related Terms
Wirecard AG Gross Margin % Historical Data
* Premium members only.
The historical data trend for Wirecard 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.
HAM:WDI vs CRM, INTU, NOW: Gross Margin % Comparison
For the Software - Application subindustry, Wirecard 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.
Wirecard AG Gross Margin % vs Software Industry
For the Software industry and Technology sector, Wirecard AG's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Wirecard 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.
Wirecard AG (HAM:WDI) has a Gross Margin % of 48.42% as of Sep. 2019. Gross margin is the ratio of total gross profit to net sales. View historical data on Wirecard AG and its competitors.
Is Wirecard AG's Gross Margin % too high?
Wirecard AG's current Gross Margin % is 48.42%. The Software industry median Gross Margin % is 40.45. Wirecard AG's value of 48.42% is 19.7% above this industry median. Overall, Wirecard AG has a GF Score™ of 10/100, reflecting its overall financial health beyond just this single metric.
How does Wirecard AG's Gross Margin % compare to CRM and INTU?
Wirecard AG's Gross Margin % of 48.42% can be compared against companies in the Software industry. The industry median Gross Margin % is 40.45. Wirecard AG's value of 48.42% is 19.7% above 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 Software company?
The median Gross Margin % among Software companies is 40.45, based on 2,685 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. Wirecard AG's current Gross Margin % of 48.42% is 19.7% 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 Wirecard 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. Wirecard AG's current Gross Margin % is 48.42%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Wirecard AG stock overvalued right now?
Wirecard AG (HAM:WDI) has a current Gross Margin % of 48.42%. The current Gross Margin % is 48.42% and 19.7% above the Software industry median of 40.45. Wirecard AG's overall GF Score™ is 10/100. 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 Wirecard AG (HAM:WDI), the current Gross Margin % is 48.42% as of Sep. 2019. 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.
Wirecard AG is a Germany-based provider of software solutions to the financial services industry. The firm's operations are organized in three segments: Payment Processing and Risk Management, which offers electronic payment processing services; Acquiring and Issuing, which issues credit cards and statements for payments and transactions; and Call Center and Communication Services, which offers relationship management services to corporate customers. The firm has operations in Europe, the United States, and the Asia-Pacific region.
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