ME Group InternationalLSE:MEGP +3.39%76 Gross Margin % is 37.69% as of Oct. 2025, which is 26% above its 10-year median of 29.93. GuruFocus rates LSE:MEGP with a GF Score™ of 76/100 and a GF Value™ of £1.82 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 2,996 Industrial Products companies, ME Group International ranks better than 71.23% on this metric.
LSE:MEGP's Gross Margin % is ranked better than 71.23% of 2996
companies
in the Industrial Products industry
Industry Median: 26.8
vs LSE:MEGP: 35.82
ME Group International had a gross margin of 37.69% for the quarter that ended in Oct. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for ME Group International was 6.50% per year.
ME Group International (LSE:MEGP) 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
ME Group International had a gross margin of 37.69% for the quarter that ended in Oct. 2025 => 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.
ME Group International Gross Margin % Related Terms
ME Group International Gross Margin % Historical Data
* Premium members only.
The historical data trend for ME Group International'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.
ME Group International Gross Margin % Competitor Comparison
For the Business Equipment & Supplies subindustry, ME Group International'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.
ME Group International Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, ME Group International's Gross Margin % distribution charts can be found below:
* The bar in red indicates where ME Group International'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.
ME Group International (LSE:MEGP) has a Gross Margin % of 37.69% as of Oct. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on ME Group International and its competitors. This is 26% above median its historical median of 29.93. Over the past decade, ME Group International's Gross Margin % has ranged from 22.68 to 37.94. According to the industry distribution chart, ME Group International ranks #862 out of 2996 companies in the Industrial Products industry, placing it in the top 28.8%.
Is ME Group International's Gross Margin % too high?
ME Group International's current Gross Margin % of 37.69% is 26% above median its 10-year median of 29.93. Over the past 10 years, this metric has ranged from a low of 22.68 to a high of 37.94. The Industrial Products industry median Gross Margin % is 26.80. ME Group International's value of 37.69% is 40.6% above this industry median. Based on the distribution chart, ME Group International ranks #862 out of 2996 companies in the Industrial Products industry, which is above the industry midpoint. Overall, ME Group International has a GF Score™ of 76/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does ME Group International's Gross Margin % compare to competitors?
According to the Industrial Products industry distribution chart, ME Group International ranks #862 out of 2996 companies for Gross Margin %. This puts ME Group International in the upper half of its industry. The industry median Gross Margin % is 26.80. ME Group International's value of 37.69% is 40.6% above this benchmark. Historically, ME Group International's own Gross Margin % has ranged from 22.68 to 37.94 over the past decade. While the company's 10-year median is 29.93 vs. the industry median of 26.80, ME Group International 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.80, based on 2,996 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. ME Group International's current Gross Margin % of 37.69% is 40.6% 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 ME Group International and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ME Group International's current Gross Margin % is 37.69%, which is 26% above median its own 10-year median of 29.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ME Group International stock overvalued right now?
Based on GuruFocus' analysis, ME Group International (LSE:MEGP) is currently considered Significantly Undervalued. The stock's GF Value™ is £1.82, compared to a current price of £1.04 — trading 43% below its estimated fair value. The current Gross Margin % is 37.69%, which is 26% above median its 10-year median of 29.93 and 40.6% above the Industrial Products industry median of 26.80. ME Group International's overall GF Score™ is 76/100 with 1 warning sign 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 ME Group International (LSE:MEGP), the current Gross Margin % is 37.69% as of Oct. 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 ME Group International (LSE:MEGP) Overvalued in 2026?
Based on GuruFocus' analysis, ME Group International stock appears to be undervalued.
The current stock price of £1.04 is trading 43% below its estimated GF Value™ of £1.82.
GuruFocus considers ME Group International to be Significantly Undervalued.
Key valuation signals for LSE:MEGP:
Gross Margin %: 37.69% (26% above median its 10-year median of 29.93)
GF Value™: £1.82 vs. price of £1.04 (43% below fair value)
Industry Position: 40.6% above the Industrial Products median (#862 of 2996)
No single metric tells the full story. See the LSE:MEGP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ME Group International PLC operates, sells and services a wide range of instant-service vending equipment, aimed at the consumer market. The group operates vending units across 20 countries and its technological innovation is focused on four principal areas namely Photobooths and integrated biometric identification solutions; Unattended laundry services and launderettes; High-quality digital printigg kiosks and Vending equipment for the food service market. Geographically, the company reports its segments and operates in UK & Republic of Ireland, Asia Pacific and Continental Europe, which is the majority revenue generator.
76GF Score
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