Itim GroupLSE:ITIM 43 Gross Margin % is 41.13% as of Dec. 2025, which is 3% above its 10-year median of 39.97. GuruFocus rates LSE:ITIM with a GF Score™ of 43/100 and a GF Value™ of £0.43 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 2,681 Software companies, Itim Group ranks worse than 53.64% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Itim Group's Gross Profit for the
six
months ended in Dec. 2025 was £3.91 Mil. Itim Group's Revenue for the
six
months ended in Dec. 2025 was £9.51 Mil. Therefore, Itim Group's Gross Margin % for the quarter that ended in Dec. 2025 was 41.13%.
Warning Sign:
Itim Group PLC gross margin has been in long-term decline. The average rate of decline per year is -1.1%.
The historical rank and industry rank for Itim Group's Gross Margin % or its related term are showing as below:
LSE:ITIM'
s Gross Margin % Range Over the Past 10 Years
Min: 31.25 Med: 39.97 Max: 41.33
Current: 37.51
During the past 8 years, the highestGross Margin % of Itim Group was 41.33%. The lowest was 31.25%. And the median was 39.97%.
LSE:ITIM's Gross Margin % is ranked worse than 53.64% of 2681
companies
in the Software industry
Industry Median: 40.45
vs LSE:ITIM: 37.51
Itim Group had a gross margin of 41.13% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Itim Group was -1.10% per year.
Itim Group (LSE:ITIM) 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
Itim Group had a gross margin of 41.13% for the quarter that ended in Dec. 2025 => 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.
Itim Group Gross Margin % Related Terms
Itim Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for Itim Group'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:ITIM vs CRM, SHOP, UBER: Gross Margin % Comparison
For the Software - Application subindustry, Itim 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.
Itim Group Gross Margin % vs Software Industry
For the Software industry and Technology sector, Itim Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Itim 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.
Itim Group (LSE:ITIM) has a Gross Margin % of 41.13% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Itim Group and its competitors. This is near median its historical median of 39.97. Over the past decade, Itim Group's Gross Margin % has ranged from 31.25 to 41.33. According to the industry distribution chart, Itim Group ranks #1438 out of 2681 companies in the Software industry, placing it in the top 53.6%.
Is Itim Group's Gross Margin % too high?
Itim Group's current Gross Margin % of 41.13% is near median its 10-year median of 39.97. Over the past 10 years, this metric has ranged from a low of 31.25 to a high of 41.33. The Software industry median Gross Margin % is 40.45. Itim Group's value of 41.13% is 1.7% above this industry median. Based on the distribution chart, Itim Group ranks #1438 out of 2681 companies in the Software industry, which is below the industry midpoint. Overall, Itim Group has a GF Score™ of 43/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Itim Group's Gross Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, Itim Group ranks #1438 out of 2681 companies for Gross Margin %. This places Itim Group in the lower half of its industry. The industry median Gross Margin % is 40.45. Itim Group's value of 41.13% is 1.7% above this benchmark. Historically, Itim Group's own Gross Margin % has ranged from 31.25 to 41.33 over the past decade. While the company's 10-year median is 39.97 vs. the industry median of 40.45, Itim 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 40.45, 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. Itim Group's current Gross Margin % of 41.13% is 1.7% 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 Itim Group 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. Itim Group's current Gross Margin % is 41.13%, which is near median its own 10-year median of 39.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Itim Group stock overvalued right now?
Based on GuruFocus' analysis, Itim Group (LSE:ITIM) is currently considered Possible Value Trap. The stock's GF Value™ is £0.43, compared to a current price of £0.24 — trading 44.2% below its estimated fair value. The current Gross Margin % is 41.13%, which is near median its 10-year median of 39.97 and 1.7% above the Software industry median of 40.45. Itim Group's overall GF Score™ is 43/100 with 5 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 Itim Group (LSE:ITIM), the current Gross Margin % is 41.13% 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 Itim Group (LSE:ITIM) Overvalued in 2026?
Based on GuruFocus' analysis, Itim Group stock appears to be undervalued.
The current stock price of £0.24 is trading 44.2% below its estimated GF Value™ of £0.43.
GuruFocus considers Itim Group to be Possible Value Trap.
Key valuation signals for LSE:ITIM:
Gross Margin %: 41.13% (near median its 10-year median of 39.97)
GF Value™: £0.43 vs. price of £0.24 (44.2% below fair value)
Industry Position: 1.7% above the Software median (#1438 of 2681)
No single metric tells the full story. See the LSE:ITIM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Itim Group PLC is engaged in providing software solutions to retailers by helping them to optimize their business and their stores to improve financial performance. It offers a complete set of retail software solutions, including Multi-Channel Sales & Services, Enterprise Order Management, Price & Stock Optimization, and Supplier Management. The company operates in the United Kingdom and Portugal, with a majority of its revenue being derived from the United Kingdom.
43GF Score
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