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SysGroupLSE:SYS +10.42%44 Gross Margin % is 44.93% as of Mar. 2026, which is 22% below its 10-year median of 57.41. GuruFocus rates LSE:SYS with a GF Score™ of 44/100 and a GF Value™ of £0.19 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 2,683 Software companies, SysGroup ranks better than 57.21% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. SysGroup's Gross Profit for the
six
months ended in Mar. 2026 was £5.46 Mil. SysGroup's Revenue for the
six
months ended in Mar. 2026 was £12.14 Mil. Therefore, SysGroup's Gross Margin % for the quarter that ended in Mar. 2026 was 44.93%.
Warning Sign:
SysGroup PLC gross margin has been in long-term decline. The average rate of decline per year is -5.1%.
The historical rank and industry rank for SysGroup's Gross Margin % or its related term are showing as below:
LSE:SYS'
s Gross Margin % Range Over the Past 10 Years
Min: 45.77 Med: 57.41 Max: 61.16
Current: 46.54
During the past 13 years, the highestGross Margin % of SysGroup was 61.16%. The lowest was 45.77%. And the median was 57.41%.
LSE:SYS's Gross Margin % is ranked better than 57.21% of 2683
companies
in the Software industry
Industry Median: 40.47
vs LSE:SYS: 46.54
SysGroup had a gross margin of 44.93% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for SysGroup was -5.10% per year.
SysGroup (LSE:SYS) 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
SysGroup had a gross margin of 44.93% 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.
SysGroup Gross Margin % Related Terms
SysGroup Gross Margin % Historical Data
* Premium members only.
The historical data trend for SysGroup'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:SYS vs MSFT, ORCL, PLTR: Gross Margin % Comparison
For the Software - Infrastructure subindustry, SysGroup'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.
SysGroup Gross Margin % vs Software Industry
For the Software industry and Technology sector, SysGroup's Gross Margin % distribution charts can be found below:
* The bar in red indicates where SysGroup'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.
SysGroup (LSE:SYS) has a Gross Margin % of 44.93% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on SysGroup and its competitors. This is 22% below median its historical median of 57.41. Over the past decade, SysGroup's Gross Margin % has ranged from 45.77 to 61.16. According to the industry distribution chart, SysGroup ranks #1148 out of 2683 companies in the Software industry, placing it in the top 42.8%.
Is SysGroup's Gross Margin % too high?
SysGroup's current Gross Margin % of 44.93% is 22% below median its 10-year median of 57.41. Over the past 10 years, this metric has ranged from a low of 45.77 to a high of 61.16. The Software industry median Gross Margin % is 40.47. SysGroup's value of 44.93% is 11% above this industry median. Based on the distribution chart, SysGroup ranks #1148 out of 2683 companies in the Software industry, which is above the industry midpoint. Overall, SysGroup has a GF Score™ of 44/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SysGroup's Gross Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, SysGroup ranks #1148 out of 2683 companies for Gross Margin %. This puts SysGroup in the upper half of its industry. The industry median Gross Margin % is 40.47. SysGroup's value of 44.93% is 11% above this benchmark. Historically, SysGroup's own Gross Margin % has ranged from 45.77 to 61.16 over the past decade. While the company's 10-year median is 57.41 vs. the industry median of 40.47, SysGroup 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 40.47, based on 2,683 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. SysGroup's current Gross Margin % of 44.93% is 11% 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 SysGroup and its competitors. For the Software industry, the median Gross Margin % is 40.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SysGroup's current Gross Margin % is 44.93%, which is 22% below median its own 10-year median of 57.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SysGroup stock overvalued right now?
Based on GuruFocus' analysis, SysGroup (LSE:SYS) is currently considered Significantly Overvalued. The stock's GF Value™ is £0.19, compared to a current price of £0.27 — trading 39.5% above its estimated fair value. The current Gross Margin % is 44.93%, which is 22% below median its 10-year median of 57.41 and 11% above the Software industry median of 40.47. SysGroup's overall GF Score™ is 44/100 with 6 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 SysGroup (LSE:SYS), the current Gross Margin % is 44.93% 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 SysGroup (LSE:SYS) Overvalued in 2026?
Based on GuruFocus' analysis, SysGroup stock appears to be overvalued.
The current stock price of £0.27 is trading 39.5% above its estimated GF Value™ of £0.19.
GuruFocus considers SysGroup to be Significantly Overvalued.
Key valuation signals for LSE:SYS:
Gross Margin %: 44.93% (22% below median its 10-year median of 57.41)
GF Value™: £0.19 vs. price of £0.27 (39.5% above fair value)
Industry Position: 11% above the Software median (#1148 of 2683)
No single metric tells the full story. See the LSE:SYS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SysGroup PLC provides Cloud Hosting, Managed Services, and IT consultancy to medium and large enterprises. The company's operating segment includes Managed IT Services and Value Added Resale (VAR). It generates maximum revenue from the Managed IT Services segment. Managed IT Services segment provides managed services to customers as well as professional services. The value-added resale (VAR) segment provides all forms of VAR sales where the business sells products and licenses from supplier partners. Geographically, it derives the majority of its revenue from the UK and has a presence in the Rest of the World.
44GF Score
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