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
WPP Scangroup had a gross margin of % for the quarter that ended in Dec. 2025 => No sustainable 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.
WPP Scangroup Gross Margin % Related Terms
WPP Scangroup Gross Margin % Historical Data
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The historical data trend for WPP Scangroup'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.
NAI:SCAN vs APP, OMC, TTD: Gross Margin % Comparison
For the Advertising Agencies subindustry, WPP Scangroup'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.
WPP Scangroup Gross Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, WPP Scangroup's Gross Margin % distribution charts can be found below:
* The bar in red indicates where WPP Scangroup'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.
WPP Scangroup (NAI:SCAN) has a Gross Margin % of 0.00% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on WPP Scangroup and its competitors. Over the past decade, WPP Scangroup's Gross Margin % has ranged from 29.20 to 82.20. According to the industry distribution chart, WPP Scangroup ranks #162 out of 945 companies in the Media - Diversified industry, placing it in the top 17.1%.
Is WPP Scangroup's Gross Margin % too high?
WPP Scangroup's current Gross Margin % is 0.00%. Over the past 10 years, this metric has ranged from a low of 29.20 to a high of 82.20. Based on the distribution chart, WPP Scangroup ranks #162 out of 945 companies in the Media - Diversified industry, which is in the top quartile — a strong position relative to peers. Overall, WPP Scangroup has a GF Score™ of 54/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does WPP Scangroup's Gross Margin % compare to APP and OMC?
According to the Media - Diversified industry distribution chart, WPP Scangroup ranks #162 out of 945 companies for Gross Margin %. This places WPP Scangroup in the top 17% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 38.99. Historically, WPP Scangroup's own Gross Margin % has ranged from 29.20 to 82.20 over the past decade. 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 Media - Diversified company?
The median Gross Margin % among Media - Diversified companies is 38.99, based on 945 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. 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 WPP Scangroup and its competitors. For the Media - Diversified industry, the median Gross Margin % is 38.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. WPP Scangroup's current Gross Margin % is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is WPP Scangroup stock overvalued right now?
Based on GuruFocus' analysis, WPP Scangroup (NAI:SCAN) is currently considered Significantly Overvalued. The stock's GF Value™ is KES1.26, compared to a current price of KES2.11 — trading 67.5% above its estimated fair value. The current Gross Margin % is 0.00%. WPP Scangroup's overall GF Score™ is 54/100 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 WPP Scangroup (NAI:SCAN), the current Gross Margin % is 0.00% 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 WPP Scangroup (NAI:SCAN) Overvalued in 2026?
Based on GuruFocus' analysis, WPP Scangroup stock appears to be overvalued.
The current stock price of KES2.11 is trading 67.5% above its estimated GF Value™ of KES1.26.
GuruFocus considers WPP Scangroup to be Significantly Overvalued.
Key valuation signals for NAI:SCAN:
Gross Margin %: 0.00%
GF Value™: KES1.26 vs. price of KES2.11 (67.5% above fair value)
No single metric tells the full story. See the NAI:SCAN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
WPP Scangroup Ltd is a company based in Kenya which is engaged in the provision of marketing communication services. The principal activity of the company includes the provision of integrated marketing communication services, which consolidates six disciplines including advertising, branding, consulting, media investment management, advertising research, public relations, digital advertising and specialty communications. Geographically, the company derives a majority of its revenue from Kenya.
54GF Score
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