Mercia Asset ManagementLSE:MERC -6.09%53 Gross Margin % is 46.29% as of Mar. 2026, which is 12% below its 10-year median of 52.39. GuruFocus rates LSE:MERC with a GF Score™ of 53/100 and a GF Value™ of £0.36 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 550 Asset Management companies, Mercia Asset Management ranks worse than 55.09% 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
Mercia Asset Management had a gross margin of 46.29% for the quarter that ended in Mar. 2026 => 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.
Mercia Asset Management Gross Margin % Related Terms
Mercia Asset Management Gross Margin % Historical Data
* 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:MERC vs BLK, BX, KKR: Gross Margin % Comparison
For the Asset Management subindustry, Mercia Asset Management'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.
Mercia Asset Management Gross Margin % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Mercia Asset Management's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Mercia Asset Management'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.
Mercia Asset Management (LSE:MERC) has a Gross Margin % of 46.29% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Mercia Asset Management and its competitors. This is 12% below median its historical median of 52.39. Over the past decade, Mercia Asset Management's Gross Margin % has ranged from 7.69 to 95.50. According to the industry distribution chart, Mercia Asset Management ranks #303 out of 550 companies in the Asset Management industry, placing it in the top 55.1%.
Is Mercia Asset Management's Gross Margin % too high?
Mercia Asset Management's current Gross Margin % of 46.29% is 12% below median its 10-year median of 52.39. Over the past 10 years, this metric has ranged from a low of 7.69 to a high of 95.50. The Asset Management industry median Gross Margin % is 57.90. Mercia Asset Management's value of 46.29% is 20.1% below this industry median. Based on the distribution chart, Mercia Asset Management ranks #303 out of 550 companies in the Asset Management industry, which is below the industry midpoint. Overall, Mercia Asset Management has a GF Score™ of 53/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Mercia Asset Management's Gross Margin % compare to BLK and BX?
According to the Asset Management industry distribution chart, Mercia Asset Management ranks #303 out of 550 companies for Gross Margin %. This places Mercia Asset Management in the lower half of its industry. The industry median Gross Margin % is 57.90. Mercia Asset Management's value of 46.29% is 20.1% below this benchmark. Historically, Mercia Asset Management's own Gross Margin % has ranged from 7.69 to 95.50 over the past decade. While the company's 10-year median is 52.39 vs. the industry median of 57.90, Mercia Asset Management 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 an Asset Management company?
The median Gross Margin % among Asset Management companies is 57.90, based on 550 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. Mercia Asset Management's current Gross Margin % of 46.29% is 20.1% 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 Mercia Asset Management and its competitors. For the Asset Management industry, the median Gross Margin % is 57.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mercia Asset Management's current Gross Margin % is 46.29%, which is 12% below median its own 10-year median of 52.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mercia Asset Management stock overvalued right now?
Based on GuruFocus' analysis, Mercia Asset Management (LSE:MERC) is currently considered Modestly Undervalued. The stock's GF Value™ is £0.36, compared to a current price of £0.27 — trading 25% below its estimated fair value. The current Gross Margin % is 46.29%, which is 12% below median its 10-year median of 52.39 and 20.1% below the Asset Management industry median of 57.90. Mercia Asset Management's overall GF Score™ is 53/100 with 3 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 Mercia Asset Management (LSE:MERC), the current Gross Margin % is 46.29% 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 Mercia Asset Management (LSE:MERC) Overvalued in 2026?
Based on GuruFocus' analysis, Mercia Asset Management stock appears to be undervalued.
The current stock price of £0.27 is trading 25% below its estimated GF Value™ of £0.36.
GuruFocus considers Mercia Asset Management to be Modestly Undervalued.
Key valuation signals for LSE:MERC:
Gross Margin %: 46.29% (12% below median its 10-year median of 52.39)
GF Value™: £0.36 vs. price of £0.27 (25% below fair value)
Industry Position: 20.1% below the Asset Management median (#303 of 550)
No single metric tells the full story. See the LSE:MERC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mercia Asset Management PLC is a specialist asset manager focusing on supporting regional SMEs. The company provides capital across its four asset classes proprietary balance sheet capital, venture capital, private equity, and debt. The company initially nurtures businesses via its third-party funds under management and then, over time, provides further funding to the companies by deploying direct investment follow-on capital from its balance sheet. It has more than eight offices in the UK region, approx. 20 university partnerships and extensive personal networks, providing it with access to high-quality deal flow.
53GF Score
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