RS2 (MAL:RS2) Gross Margin %: 20.03% (As of Jun. 2025) — 51% Below Median

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MAL:RS2 RS2 PLC MAL:RS2
49 GF Score
Price €0.48
! 4 Warning Signs
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What is RS2 Gross Margin %?

RS2 MAL:RS2 49 Gross Margin % is 20.03% as of Jun. 2025, which is 51% below its 10-year median of 40.54. GuruFocus rates MAL:RS2 with a GF Score™ of 49/100. The stock has 4 warning signs investors should review. Among 2,685 Software companies, RS2 ranks worse than 79.63% on this metric.

Gross Margin % is calculated as gross profit divided by its revenue. RS2's Gross Profit for the six months ended in Jun. 2025 was €3.53 Mil. RS2's Revenue for the six months ended in Jun. 2025 was €17.61 Mil. Therefore, RS2's Gross Margin % for the quarter that ended in Jun. 2025 was 20.03%.

Warning Sign:

RS2 PLC gross margin has been in long-term decline. The average rate of decline per year is -3.1%.


The historical rank and industry rank for RS2's Gross Margin % or its related term are showing as below:

MAL:RS2' s Gross Margin % Range Over the Past 10 Years
Min: 20.03   Med: 40.54   Max: 52.55
Current: 20.03


During the past 13 years, the highest Gross Margin % of RS2 was 52.55%. The lowest was 20.03%. And the median was 40.54%.

MAL:RS2's Gross Margin % is ranked worse than
79.63% of 2685 companies
in the Software industry
Industry Median: 40.46 vs MAL:RS2: 20.03

RS2 had a gross margin of 20.03% for the quarter that ended in Jun. 2025 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for RS2 was -3.10% per year.


RS2  (MAL:RS2) 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

RS2 had a gross margin of 20.03% for the quarter that ended in Jun. 2025 => 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.


RS2 Gross Margin % Related Terms


RS2 Gross Margin % Historical Data

* Premium members only.

The historical data trend for RS2'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.

RS2 Gross Margin % Chart

RS2 Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 31.69 30.54 43.81 31.55 37.18

RS2 Semi-Annual Data
Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Jun25
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 28.24 24.98 46.94 28.53 20.03

MAL:RS2 vs MSFT, ORCL, PLTR: Gross Margin % Comparison

For the Software - Infrastructure subindustry, RS2'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.


RS2 Gross Margin % vs Software Industry

For the Software industry and Technology sector, RS2's Gross Margin % distribution charts can be found below:

* The bar in red indicates where RS2's Gross Margin % falls into.


MAL:RS2
49GF Score
RS2 PLC MAL:RS2
Gross Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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RS2 Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

RS2's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=14.8 / 39.672
=(Revenue - Cost of Goods Sold) / Revenue
=(39.672 - 24.92) / 39.672
=37.18 %

RS2's Gross Margin for the quarter that ended in Jun. 2025 is calculated as


Gross Margin % (Q: Jun. 2025 )=Gross Profit (Q: Jun. 2025 ) / Revenue (Q: Jun. 2025 )
=3.5 / 17.605
=(Revenue - Cost of Goods Sold) / Revenue
=(17.605 - 14.078) / 17.605
=20.03 %

* 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.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 20.03% mean?
RS2 (MAL:RS2) has a Gross Margin % of 20.03% as of Jun. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on RS2 and its competitors. This is 51% below median its historical median of 40.54. Over the past decade, RS2's Gross Margin % has ranged from 20.03 to 52.55. According to the industry distribution chart, RS2 ranks #2138 out of 2685 companies in the Software industry, placing it in the top 79.6%.
Is RS2's Gross Margin % too high?
RS2's current Gross Margin % of 20.03% is 51% below median its 10-year median of 40.54. Over the past 10 years, this metric has ranged from a low of 20.03 to a high of 52.55. The Software industry median Gross Margin % is 40.46. RS2's value of 20.03% is 50.5% below this industry median. Based on the distribution chart, RS2 ranks #2138 out of 2685 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, RS2 has a GF Score™ of 49/100, reflecting its overall financial health beyond just this single metric.
How does RS2's Gross Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, RS2 ranks #2138 out of 2685 companies for Gross Margin %. This places RS2 in the lower half of its industry. The industry median Gross Margin % is 40.46. RS2's value of 20.03% is 50.5% below this benchmark. Historically, RS2's own Gross Margin % has ranged from 20.03 to 52.55 over the past decade. While the company's 10-year median is 40.54 vs. the industry median of 40.46, RS2 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 40.46, based on 2,685 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. RS2's current Gross Margin % of 20.03% is 50.5% 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 RS2 and its competitors. For the Software industry, the median Gross Margin % is 40.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. RS2's current Gross Margin % is 20.03%, which is 51% below median its own 10-year median of 40.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is RS2 stock overvalued right now?
RS2 (MAL:RS2) has a current Gross Margin % of 20.03%. The current Gross Margin % is 20.03%, which is 51% below median its 10-year median of 40.54 and 50.5% below the Software industry median of 40.46. RS2's overall GF Score™ is 49/100 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 RS2 (MAL:RS2), the current Gross Margin % is 20.03% as of Jun. 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.

RS2 Business Description

Address Fort Road, RS2 Buildings, Mosta, MLT, 1859
RS2 PLC is engaged in providing Payments Software and Managed Services. It is involved in the development, installation, implementation, and marketing of computer software for financial institutions under the trademark of BankWORKS and the processing of payment transactions with the use of BankWORKS. Its segments include Licensing of the company's BankWORKS software to banks and Service providers, including maintenance and enhanced services thereto; Processing of payment transactions utilizing the group's BankWORKS software; and Merchant Solutions, which include issuing and acquiring payment solutions directly to merchants, including terminal and PSP gateway services. Its geographic segments include Malta, the United Kingdom and Ireland, the United States, and Other countries.
49GF Score

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