Reply SpAMIL:REY +1.87%78 Gross Margin % is 42.54% as of Mar. 2026, which is 12% below its 10-year median of 48.09. GuruFocus rates MIL:REY with a GF Score™ of 78/100 and a GF Value™ of €146.12 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 2,681 Software companies, Reply SpA ranks better than 55.46% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Reply SpA's Gross Profit for the
three
months ended in Mar. 2026 was €274 Mil. Reply SpA's Revenue for the
three
months ended in Mar. 2026 was €645 Mil. Therefore, Reply SpA's Gross Margin % for the quarter that ended in Mar. 2026 was 42.54%.
Warning Sign:
Reply SpA gross margin has been in long-term decline. The average rate of decline per year is -1.7%.
The historical rank and industry rank for Reply SpA's Gross Margin % or its related term are showing as below:
MIL:REY'
s Gross Margin % Range Over the Past 10 Years
Min: -3428.71 Med: 48.09 Max: 50.94
Current: 45.07
During the past 13 years, the highestGross Margin % of Reply SpA was 50.94%. The lowest was -3428.71%. And the median was 48.09%.
MIL:REY's Gross Margin % is ranked better than 55.46% of 2681
companies
in the Software industry
Industry Median: 40.45
vs MIL:REY: 45.07
Reply SpA had a gross margin of 42.54% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Reply SpA was -1.70% per year.
Reply SpA (MIL:REY) 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
Reply SpA had a gross margin of 42.54% for the quarter that ended in Mar. 2026 => 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.
Reply SpA Gross Margin % Related Terms
Reply SpA Gross Margin % Historical Data
* Premium members only.
The historical data trend for Reply 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:REY vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, Reply 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.
Reply SpA Gross Margin % vs Software Industry
For the Software industry and Technology sector, Reply SpA's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Reply 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.
Reply SpA (MIL:REY) has a Gross Margin % of 42.54% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Reply SpA and its competitors. This is 12% below median its historical median of 48.09. According to the industry distribution chart, Reply SpA ranks #1194 out of 2681 companies in the Software industry, placing it in the top 44.5%.
Is Reply SpA's Gross Margin % too high?
Reply SpA's current Gross Margin % of 42.54% is 12% below median its 10-year median of 48.09. The Software industry median Gross Margin % is 40.45. Reply SpA's value of 42.54% is 5.2% above this industry median. Based on the distribution chart, Reply SpA ranks #1194 out of 2681 companies in the Software industry, which is above the industry midpoint. Overall, Reply SpA has a GF Score™ of 78/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Reply SpA's Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Reply SpA ranks #1194 out of 2681 companies for Gross Margin %. This puts Reply SpA in the upper half of its industry. The industry median Gross Margin % is 40.45. Reply SpA's value of 42.54% is 5.2% above this benchmark. While the company's 10-year median is 48.09 vs. the industry median of 40.45, Reply SpA 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 2,681 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. Reply SpA's current Gross Margin % of 42.54% is 5.2% 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 Reply 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. Reply SpA's current Gross Margin % is 42.54%, which is 12% below median its own 10-year median of 48.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Reply SpA stock overvalued right now?
Based on GuruFocus' analysis, Reply SpA (MIL:REY) is currently considered Significantly Undervalued. The stock's GF Value™ is €146.12, compared to a current price of €90.00 — trading 38.4% below its estimated fair value. The current Gross Margin % is 42.54%, which is 12% below median its 10-year median of 48.09 and 5.2% above the Software industry median of 40.45. Reply SpA's overall GF Score™ is 78/100 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 Reply SpA (MIL:REY), the current Gross Margin % is 42.54% 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 Reply SpA (MIL:REY) Overvalued in 2026?
Based on GuruFocus' analysis, Reply SpA stock appears to be undervalued.
The current stock price of €90.00 is trading 38.4% below its estimated GF Value™ of €146.12.
GuruFocus considers Reply SpA to be Significantly Undervalued.
Key valuation signals for MIL:REY:
Gross Margin %: 42.54% (12% below median its 10-year median of 48.09)
GF Value™: €146.12 vs. price of €90.00 (38.4% below fair value)
Industry Position: 5.2% above the Software median (#1194 of 2681)
No single metric tells the full story. See the MIL:REY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Reply SpA specialises in consulting, digital services, and the integration of processes, applications, and devices. Reply serves clients in the telecommunication and media, banking, insurance, financial, industry and services, energy and utilities, and public administration industries. The company provides its services mainly through platforms such as X-Rais Reply, Discovery Reply, Brick Reply, TamTamy, and SideUp Reply. Reply researches, selects, and markets solutions through channels such as data analysis, digital communication, e-commerce, mobile, and social media. Its business segments are defined based on geographical areas of operation and include Region 1 (including Italy, USA, Brazil, Poland, Romania, and Nanjing), which derives key revenue, Region 2, Region 3, and IoT Incubator.
78GF Score
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