Zoo Digital GroupLSE:ZOO 50 Gross Margin % is 45.01% as of Sep. 2025, which is 29% above its 10-year median of 34.89. GuruFocus rates LSE:ZOO with a GF Score™ of 50/100 and a GF Value™ of £0.29 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 2,680 Software companies, Zoo Digital Group ranks worse than 50.11% on this metric.
Zoo Digital Group PLC gross margin has been in long-term decline. The average rate of decline per year is -6.2%.
The historical rank and industry rank for Zoo Digital Group's Gross Margin % or its related term are showing as below:
LSE:ZOO'
s Gross Margin % Range Over the Past 10 Years
Min: 13.43 Med: 34.89 Max: 79.39
Current: 40.41
During the past 13 years, the highestGross Margin % of Zoo Digital Group was 79.39%. The lowest was 13.43%. And the median was 34.89%.
LSE:ZOO's Gross Margin % is ranked worse than 50.11% of 2680
companies
in the Software industry
Industry Median: 40.45
vs LSE:ZOO: 40.41
Zoo Digital Group had a gross margin of 45.01% for the quarter that ended in Sep. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Zoo Digital Group was -6.20% per year.
Zoo Digital Group (LSE:ZOO) 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
Zoo Digital Group had a gross margin of 45.01% for the quarter that ended in Sep. 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.
Zoo Digital Group Gross Margin % Related Terms
Zoo Digital Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for Zoo Digital 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:ZOO vs UBER, SHOP, CRM: Gross Margin % Comparison
For the Software - Application subindustry, Zoo Digital 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.
Zoo Digital Group Gross Margin % vs Software Industry
For the Software industry and Technology sector, Zoo Digital Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Zoo Digital 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.
Zoo Digital Group (LSE:ZOO) has a Gross Margin % of 45.01% as of Sep. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Zoo Digital Group and its competitors. This is 29% above median its historical median of 34.89. Over the past decade, Zoo Digital Group's Gross Margin % has ranged from 13.43 to 79.39. According to the industry distribution chart, Zoo Digital Group ranks #1343 out of 2680 companies in the Software industry, placing it in the top 50.1%.
Is Zoo Digital Group's Gross Margin % too high?
Zoo Digital Group's current Gross Margin % of 45.01% is 29% above median its 10-year median of 34.89. Over the past 10 years, this metric has ranged from a low of 13.43 to a high of 79.39. The Software industry median Gross Margin % is 40.45. Zoo Digital Group's value of 45.01% is 11.3% above this industry median. Based on the distribution chart, Zoo Digital Group ranks #1343 out of 2680 companies in the Software industry, which is below the industry midpoint. Overall, Zoo Digital Group has a GF Score™ of 50/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Zoo Digital Group's Gross Margin % compare to UBER and SHOP?
According to the Software industry distribution chart, Zoo Digital Group ranks #1343 out of 2680 companies for Gross Margin %. This places Zoo Digital Group in the lower half of its industry. The industry median Gross Margin % is 40.45. Zoo Digital Group's value of 45.01% is 11.3% above this benchmark. Historically, Zoo Digital Group's own Gross Margin % has ranged from 13.43 to 79.39 over the past decade. While the company's 10-year median is 34.89 vs. the industry median of 40.45, Zoo Digital 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 2,680 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. Zoo Digital Group's current Gross Margin % of 45.01% is 11.3% 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 Zoo Digital 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. Zoo Digital Group's current Gross Margin % is 45.01%, which is 29% above median its own 10-year median of 34.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zoo Digital Group stock overvalued right now?
Based on GuruFocus' analysis, Zoo Digital Group (LSE:ZOO) is currently considered Possible Value Trap. The stock's GF Value™ is £0.29, compared to a current price of £0.11 — trading 61.2% below its estimated fair value. The current Gross Margin % is 45.01%, which is 29% above median its 10-year median of 34.89 and 11.3% above the Software industry median of 40.45. Zoo Digital Group's overall GF Score™ is 50/100 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 Zoo Digital Group (LSE:ZOO), the current Gross Margin % is 45.01% as of Sep. 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 Zoo Digital Group (LSE:ZOO) Overvalued in 2026?
Based on GuruFocus' analysis, Zoo Digital Group stock appears to be undervalued.
The current stock price of £0.11 is trading 61.2% below its estimated GF Value™ of £0.29.
GuruFocus considers Zoo Digital Group to be Possible Value Trap.
Key valuation signals for LSE:ZOO:
Gross Margin %: 45.01% (29% above median its 10-year median of 34.89)
GF Value™: £0.29 vs. price of £0.11 (61.2% below fair value)
Industry Position: 11.3% above the Software median (#1343 of 2680)
No single metric tells the full story. See the LSE:ZOO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zoo Digital Group PLC through its subsidiaries provides cloud technology services. Its services are used for digital content authoring, video post-production, and localisation for entertainment, publishing, and packaging markets. The company's operating segment includes Media Production and Software solutions. Media Production includes localisation and media services. It generates maximum revenue from the Media Production segment. Geographically, it operates in the United Kingdom and the United States, out of which it derives the majority of its revenue from the United States.
50GF Score
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