init innovation in traffic systems SE (LTS:0EWR) 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
init innovation in traffic systems SE had a gross margin of 31.47% for the quarter that ended in Mar. 2026 => 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.
init innovation in traffic systems SE Gross Margin % Related Terms
init innovation in traffic systems SE 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.
init innovation in traffic systems SE Gross Margin % Chart
LTS:0EWR vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, init innovation in traffic systems SE'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.
init innovation in traffic systems SE Gross Margin % vs Software Industry
* 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.
init innovation in traffic systems SE (LTS:0EWR) has a Gross Margin % of 31.47% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on init innovation in traffic systems SE and its competitors. This is 10% below median its historical median of 34.95. Over the past decade, init innovation in traffic systems SE's Gross Margin % has ranged from 28.81 to 40.03. According to the industry distribution chart, init innovation in traffic systems SE ranks #1489 out of 2681 companies in the Software industry, placing it in the top 55.5%.
Is init innovation in traffic systems SE's Gross Margin % too high?
init innovation in traffic systems SE's current Gross Margin % of 31.47% is 10% below median its 10-year median of 34.95. Over the past 10 years, this metric has ranged from a low of 28.81 to a high of 40.03. The Software industry median Gross Margin % is 40.41. init innovation in traffic systems SE's value of 31.47% is 22.1% below this industry median. Based on the distribution chart, init innovation in traffic systems SE ranks #1489 out of 2681 companies in the Software industry, which is below the industry midpoint. Overall, init innovation in traffic systems SE has a GF Score™ of 95/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does init innovation in traffic systems SE's Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, init innovation in traffic systems SE ranks #1489 out of 2681 companies for Gross Margin %. This places init innovation in traffic systems SE in the lower half of its industry. The industry median Gross Margin % is 40.41. init innovation in traffic systems SE's value of 31.47% is 22.1% below this benchmark. Historically, init innovation in traffic systems SE's own Gross Margin % has ranged from 28.81 to 40.03 over the past decade. While the company's 10-year median is 34.95 vs. the industry median of 40.41, init innovation in traffic systems SE 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 a Software company?
The median Gross Margin % among Software companies is 40.41, 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. init innovation in traffic systems SE's current Gross Margin % of 31.47% is 22.1% 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 init innovation in traffic systems SE and its competitors. For the Software industry, the median Gross Margin % is 40.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. init innovation in traffic systems SE's current Gross Margin % is 31.47%, which is 10% below median its own 10-year median of 34.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is init innovation in traffic systems SE stock overvalued right now?
Based on GuruFocus' analysis, init innovation in traffic systems SE (LTS:0EWR) is currently considered Modestly Undervalued. The stock's GF Value™ is €56.18, compared to a current price of €46.60 — trading 17.1% below its estimated fair value. The current Gross Margin % is 31.47%, which is 10% below median its 10-year median of 34.95 and 22.1% below the Software industry median of 40.41. init innovation in traffic systems SE's overall GF Score™ is 95/100 with 2 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 init innovation in traffic systems SE (LTS:0EWR), the current Gross Margin % is 31.47% 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 init innovation in traffic systems SE (LTS:0EWR) Overvalued in 2026?
Based on GuruFocus' analysis, init innovation in traffic systems SE stock appears to be undervalued.
The current stock price of €46.60 is trading 17.1% below its estimated GF Value™ of €56.18.
GuruFocus considers init innovation in traffic systems SE to be Modestly Undervalued.
Key valuation signals for LTS:0EWR:
Gross Margin %: 31.47% (10% below median its 10-year median of 34.95)
GF Value™: €56.18 vs. price of €46.60 (17.1% below fair value)
Industry Position: 22.1% below the Software median (#1489 of 2681)
No single metric tells the full story. See the LTS:0EWR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
init innovation in traffic systems SE Business Description
init innovation in traffic systems SE supplies transportation telematics systems. It mainly offers integrated planning, dispatching, telematics, and ticketing solutions for buses and trains around the world. The company operates through the following divisions: INIT Integrated Systems, INIT Cloud Solutions, and INIT Passenger Intelligence. The INIT Integrated Systems division installs and operates integrated hardware and software systems for transport operators; the INIT Cloud Solutions unit offers software and data platforms; and the INIT Passenger Intelligence unit offers solutions to track, analyze, and monitor passenger movement in public transport to optimize overall public transport performance and comfort. Geographically, the company generates maximum revenue from North America.
95GF Score
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