WAG Payment SolutionsLSE:EWG +3.31%58 Gross Margin % is 14.65% as of Dec. 2025, which is 50% above its 10-year median of 9.78. GuruFocus rates LSE:EWG with a GF Score™ of 58/100 and a GF Value™ of £0.51 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 2,680 Software companies, WAG Payment Solutions ranks worse than 86.98% on this metric.
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
WAG Payment Solutions had a gross margin of 14.65% for the quarter that ended in Dec. 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.
WAG Payment Solutions Gross Margin % Related Terms
WAG Payment Solutions Gross Margin % Historical Data
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The historical data trend for WAG Payment Solutions'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.
LSE:EWG vs MSFT, ORCL, PLTR: Gross Margin % Comparison
For the Software - Infrastructure subindustry, WAG Payment Solutions'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.
WAG Payment Solutions Gross Margin % vs Software Industry
For the Software industry and Technology sector, WAG Payment Solutions's Gross Margin % distribution charts can be found below:
* The bar in red indicates where WAG Payment Solutions'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.
WAG Payment Solutions (LSE:EWG) has a Gross Margin % of 14.65% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on WAG Payment Solutions and its competitors. This is 50% above median its historical median of 9.78. Over the past decade, WAG Payment Solutions' Gross Margin % has ranged from 8.01 to 14.31. According to the industry distribution chart, WAG Payment Solutions ranks #2331 out of 2680 companies in the Software industry, placing it in the top 87%.
Is WAG Payment Solutions' Gross Margin % too high?
WAG Payment Solutions' current Gross Margin % of 14.65% is 50% above median its 10-year median of 9.78. Over the past 10 years, this metric has ranged from a low of 8.01 to a high of 14.31. The Software industry median Gross Margin % is 40.45. WAG Payment Solutions' value of 14.65% is 63.8% below this industry median. Based on the distribution chart, WAG Payment Solutions ranks #2331 out of 2680 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, WAG Payment Solutions has a GF Score™ of 58/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does WAG Payment Solutions' Gross Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, WAG Payment Solutions ranks #2331 out of 2680 companies for Gross Margin %. This places WAG Payment Solutions in the lower half of its industry. The industry median Gross Margin % is 40.45. WAG Payment Solutions' value of 14.65% is 63.8% below this benchmark. Historically, WAG Payment Solutions' own Gross Margin % has ranged from 8.01 to 14.31 over the past decade. While the company's 10-year median is 9.78 vs. the industry median of 40.45, WAG Payment Solutions 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. WAG Payment Solutions's current Gross Margin % of 14.65% is 63.8% 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 WAG Payment Solutions 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. WAG Payment Solutions's current Gross Margin % is 14.65%, which is 50% above median its own 10-year median of 9.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is WAG Payment Solutions stock overvalued right now?
Based on GuruFocus' analysis, WAG Payment Solutions (LSE:EWG) is currently considered Significantly Overvalued. The stock's GF Value™ is £0.51, compared to a current price of £1.06 — trading 107.8% above its estimated fair value. The current Gross Margin % is 14.65%, which is 50% above median its 10-year median of 9.78 and 63.8% below the Software industry median of 40.45. WAG Payment Solutions' overall GF Score™ is 58/100 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 WAG Payment Solutions (LSE:EWG), the current Gross Margin % is 14.65% as of Dec. 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 WAG Payment Solutions (LSE:EWG) Overvalued in 2026?
Based on GuruFocus' analysis, WAG Payment Solutions stock appears to be overvalued.
The current stock price of £1.06 is trading 107.8% above its estimated GF Value™ of £0.51.
GuruFocus considers WAG Payment Solutions to be Significantly Overvalued.
Key valuation signals for LSE:EWG:
Gross Margin %: 14.65% (50% above median its 10-year median of 9.78)
GF Value™: £0.51 vs. price of £1.06 (107.8% above fair value)
Industry Position: 63.8% below the Software median (#2331 of 2680)
No single metric tells the full story. See the LSE:EWG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
WAG Payment Solutions PLC operates as a pan-European payments and mobility platform focused on the commercial road transport sector. Its offerings include payment solutions and services designed to support operations in the transport industry. The company is organised into two operating segments: Payment solutions and Mobility solutions. Payment solutions represent the company's revenues, which are based on recurring and frequent transactional payments. The segment includes Energy and Toll payments. Mobility solutions represent a number of services, which are either subscription based or subsequently sold to customers using Payment solutions products. The majority of revenue is derived from the Payment solutions segment. Geographically, it generates the maximum revenue from Poland.
58GF Score
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