Cegid GroupLTS:0RIY Gross Margin % is 85.73% as of Dec. 2016, which is 1% below its 10-year median of 86.22. The stock has 4 warning signs investors should review.
The historical rank and industry rank for Cegid Group's Gross Margin % or its related term are showing as below:
LTS:0RIY'
s Gross Margin % Range Over the Past 10 Years
Min: 83.94 Med: 86.22 Max: 87.92
Current: 85.69
During the past 13 years, the highestGross Margin % of Cegid Group was 87.92%. The lowest was 83.94%. And the median was 86.22%.
LTS:0RIY's Gross Margin % is not ranked
in the Software industry.
Industry Median: 40.41
vs LTS:0RIY: 85.69
Cegid Group had a gross margin of 85.73% for the quarter that ended in Dec. 2016 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Cegid Group was -0.20% per year.
Cegid Group (LTS:0RIY) 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
Cegid Group had a gross margin of 85.73% for the quarter that ended in Dec. 2016 => 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.
Cegid Group Gross Margin % Related Terms
Cegid Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for Cegid 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.
LTS:0RIY vs TYPE, MTLS, TIVO: Gross Margin % Comparison
For the Software - Application subindustry, Cegid 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.
Cegid Group Gross Margin % vs Software Industry
For the Software industry and Technology sector, Cegid Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Cegid 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.
Cegid Group (LTS:0RIY) has a Gross Margin % of 85.73% as of Dec. 2016. Gross margin is the ratio of total gross profit to net sales. View historical data on Cegid Group and its competitors. This is near median its historical median of 86.22. Over the past decade, Cegid Group's Gross Margin % has ranged from 83.94 to 87.92.
Is Cegid Group's Gross Margin % too high?
Cegid Group's current Gross Margin % of 85.73% is near median its 10-year median of 86.22. Over the past 10 years, this metric has ranged from a low of 83.94 to a high of 87.92. The Software industry median Gross Margin % is 40.41. Cegid Group's value of 85.73% is 112.2% above this industry median.
How does Cegid Group's Gross Margin % compare to TYPE and MTLS?
Cegid Group's Gross Margin % of 85.73% can be compared against companies in the Software industry. The industry median Gross Margin % is 40.41. Cegid Group's value of 85.73% is 112.2% above this benchmark. Historically, Cegid Group's own Gross Margin % has ranged from 83.94 to 87.92 over the past decade. While the company's 10-year median is 86.22 vs. the industry median of 40.41, Cegid 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 40.41, 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. Cegid Group's current Gross Margin % of 85.73% is 112.2% 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 Cegid Group 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. Cegid Group's current Gross Margin % is 85.73%, which is near median its own 10-year median of 86.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cegid Group stock overvalued right now?
Cegid Group (LTS:0RIY) has a current Gross Margin % of 85.73%. The current Gross Margin % is 85.73%, which is near median its 10-year median of 86.22 and 112.2% above the Software industry median of 40.41. 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 Cegid Group (LTS:0RIY), the current Gross Margin % is 85.73% as of Dec. 2016. 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.
Cegid Group SA is engaged in the development, hosting, sell and distribution of business management software and related goods and services. It serves the finance, taxation, human resources, public, retail, manufacturing, services, trade, and accounting profession sectors, as well as startups and small businesses. Geographically business activity of the group is based in France.
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