Reti SpAMIL:RETI -2.48%59 Gross Margin % is 31.59% as of Dec. 2025, which is 14% below its 10-year median of 36.85. GuruFocus rates MIL:RETI with a GF Score™ of 59/100 and a GF Value™ of €2.23 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 2,680 Software companies, Reti SpA ranks worse than 58.69% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Reti SpA's Gross Profit for the
six
months ended in Dec. 2025 was €5.96 Mil. Reti SpA's Revenue for the
six
months ended in Dec. 2025 was €18.87 Mil. Therefore, Reti SpA's Gross Margin % for the quarter that ended in Dec. 2025 was 31.59%.
Warning Sign:
Reti SpA gross margin has been in long-term decline. The average rate of decline per year is -2.9%.
The historical rank and industry rank for Reti SpA's Gross Margin % or its related term are showing as below:
MIL:RETI'
s Gross Margin % Range Over the Past 10 Years
Min: 24.07 Med: 36.85 Max: 39.55
Current: 33.71
During the past 8 years, the highestGross Margin % of Reti SpA was 39.55%. The lowest was 24.07%. And the median was 36.85%.
MIL:RETI's Gross Margin % is ranked worse than 58.69% of 2680
companies
in the Software industry
Industry Median: 40.45
vs MIL:RETI: 33.71
Reti SpA had a gross margin of 31.59% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Reti SpA was -2.90% per year.
Reti SpA (MIL:RETI) 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
Reti SpA had a gross margin of 31.59% for the quarter that ended in Dec. 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.
Reti SpA Gross Margin % Related Terms
Reti SpA Gross Margin % Historical Data
* Premium members only.
The historical data trend for Reti SpA'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.
MIL:RETI vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, Reti SpA'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.
Reti SpA Gross Margin % vs Software Industry
For the Software industry and Technology sector, Reti SpA's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Reti SpA'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.
Reti SpA (MIL:RETI) has a Gross Margin % of 31.59% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Reti SpA and its competitors. This is 14% below median its historical median of 36.85. Over the past decade, Reti SpA's Gross Margin % has ranged from 24.07 to 39.55. According to the industry distribution chart, Reti SpA ranks #1573 out of 2680 companies in the Software industry, placing it in the top 58.7%.
Is Reti SpA's Gross Margin % too high?
Reti SpA's current Gross Margin % of 31.59% is 14% below median its 10-year median of 36.85. Over the past 10 years, this metric has ranged from a low of 24.07 to a high of 39.55. The Software industry median Gross Margin % is 40.45. Reti SpA's value of 31.59% is 21.9% below this industry median. Based on the distribution chart, Reti SpA ranks #1573 out of 2680 companies in the Software industry, which is below the industry midpoint. Overall, Reti SpA has a GF Score™ of 59/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Reti SpA's Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Reti SpA ranks #1573 out of 2680 companies for Gross Margin %. This places Reti SpA in the lower half of its industry. The industry median Gross Margin % is 40.45. Reti SpA's value of 31.59% is 21.9% below this benchmark. Historically, Reti SpA's own Gross Margin % has ranged from 24.07 to 39.55 over the past decade. While the company's 10-year median is 36.85 vs. the industry median of 40.45, Reti SpA 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 40.45, 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. Reti SpA's current Gross Margin % of 31.59% is 21.9% 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 Reti SpA 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. Reti SpA's current Gross Margin % is 31.59%, which is 14% below median its own 10-year median of 36.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Reti SpA stock overvalued right now?
Based on GuruFocus' analysis, Reti SpA (MIL:RETI) is currently considered Possible Value Trap. The stock's GF Value™ is €2.23, compared to a current price of €1.57 — trading 29.6% below its estimated fair value. The current Gross Margin % is 31.59%, which is 14% below median its 10-year median of 36.85 and 21.9% below the Software industry median of 40.45. Reti SpA's overall GF Score™ is 59/100 with 3 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 Reti SpA (MIL:RETI), the current Gross Margin % is 31.59% as of Dec. 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 Reti SpA (MIL:RETI) Overvalued in 2026?
Based on GuruFocus' analysis, Reti SpA stock appears to be undervalued.
The current stock price of €1.57 is trading 29.6% below its estimated GF Value™ of €2.23.
GuruFocus considers Reti SpA to be Possible Value Trap.
Key valuation signals for MIL:RETI:
Gross Margin %: 31.59% (14% below median its 10-year median of 36.85)
GF Value™: €2.23 vs. price of €1.57 (29.6% below fair value)
Industry Position: 21.9% below the Software median (#1573 of 2680)
No single metric tells the full story. See the MIL:RETI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Reti SpA operates in the IT consulting field, specializing in System Integration services. It supports mid and large corporates in digital transformation by offering IT solutions, business consulting, and managed service provider services. The various services provided by the company include; the integration of AI into existing business processes, designing and implementing solutions for business data analysis, executing cloud migration and development projects, management and maintenance of IT infrastructures and applications, providing consultancy in project management and business analyst fields, and others. Geographically, the company generates all of its revenue from its business in Italy.
59GF Score
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