NorCom Information Technology GmbH KGaA (GREY:NRCIF) 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
NorCom Information Technology GmbH KGaA had a gross margin of 62.76% for the quarter that ended in Dec. 2025 => 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.
NorCom Information Technology GmbH KGaA Gross Margin % Related Terms
NorCom Information Technology GmbH KGaA Gross Margin % Historical Data
* 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.
NorCom Information Technology GmbH KGaA Gross Margin % Chart
NorCom Information Technology GmbH KGaA Annual Data
NRCIF vs CTAS, CPRT, ULS: Gross Margin % Comparison
For the Specialty Business Services subindustry, NorCom Information Technology GmbH KGaA'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.
NorCom Information Technology GmbH KGaA Gross Margin % vs Business Services Industry
* 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.
NorCom Information Technology GmbH KGaA (NRCIF) has a Gross Margin % of 62.76% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on NorCom Information Technology GmbH KGaA and its competitors. This is 29% above median its historical median of 48.77. Over the past decade, NorCom Information Technology GmbH KGaA's Gross Margin % has ranged from 45.70 to 66.59. According to the industry distribution chart, NorCom Information Technology GmbH KGaA ranks #278 out of 1006 companies in the Business Services industry, placing it in the top 27.6%.
Is NorCom Information Technology GmbH KGaA's Gross Margin % too high?
NorCom Information Technology GmbH KGaA's current Gross Margin % of 62.76% is 29% above median its 10-year median of 48.77. Over the past 10 years, this metric has ranged from a low of 45.70 to a high of 66.59. The Business Services industry median Gross Margin % is 34.46. NorCom Information Technology GmbH KGaA's value of 62.76% is 82.1% above this industry median. Based on the distribution chart, NorCom Information Technology GmbH KGaA ranks #278 out of 1006 companies in the Business Services industry, which is above the industry midpoint. Overall, NorCom Information Technology GmbH KGaA has a GF Score™ of 44/100, reflecting its overall financial health beyond just this single metric.
How does NorCom Information Technology GmbH KGaA's Gross Margin % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, NorCom Information Technology GmbH KGaA ranks #278 out of 1006 companies for Gross Margin %. This puts NorCom Information Technology GmbH KGaA in the upper half of its industry. The industry median Gross Margin % is 34.46. NorCom Information Technology GmbH KGaA's value of 62.76% is 82.1% above this benchmark. Historically, NorCom Information Technology GmbH KGaA's own Gross Margin % has ranged from 45.70 to 66.59 over the past decade. While the company's 10-year median is 48.77 vs. the industry median of 34.46, NorCom Information Technology GmbH KGaA 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 Business Services company?
The median Gross Margin % among Business Services companies is 34.46, based on 1,006 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. NorCom Information Technology GmbH KGaA's current Gross Margin % of 62.76% is 82.1% 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 NorCom Information Technology GmbH KGaA and its competitors. For the Business Services industry, the median Gross Margin % is 34.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NorCom Information Technology GmbH KGaA's current Gross Margin % is 62.76%, which is 29% above median its own 10-year median of 48.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NorCom Information Technology GmbH KGaA stock overvalued right now?
NorCom Information Technology GmbH KGaA (NRCIF) has a current Gross Margin % of 62.76%. The stock's GF Value™ is $7.12, compared to a current price of $3.00 — trading 57.9% below its estimated fair value. The current Gross Margin % is 62.76%, which is 29% above median its 10-year median of 48.77 and 82.1% above the Business Services industry median of 34.46. NorCom Information Technology GmbH KGaA's overall GF Score™ is 44/100 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 NorCom Information Technology GmbH KGaA (NRCIF), the current Gross Margin % is 62.76% 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 NorCom Information Technology GmbH KGaA (NRCIF) Overvalued in 2026?
Based on GuruFocus' analysis, NorCom Information Technology GmbH KGaA stock appears to be undervalued.
The current stock price of $3.00 is trading 57.9% below its estimated GF Value™ of $7.12.
Key valuation signals for NRCIF:
Gross Margin %: 62.76% (29% above median its 10-year median of 48.77)
GF Value™: $7.12 vs. price of $3.00 (57.9% below fair value)
Industry Position: 82.1% above the Business Services median (#278 of 1006)
No single metric tells the full story. See the NRCIF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NorCom Information Technology GmbH KGaA Business Description
NorCom Information Technology GmbH & Co KGaA develops and implements AI solutions for international companies. NorCom offers technological solutions for issues that pose challenges to almost all large corporations and large public administrations: Fast, secure work with and exchange of large amounts of data, information governance, legally compliant data lifecycle management, and the use of artificial intelligence and data analytics in the mentioned areas. NorCom offers a complete range consisting of large data and AI solutions. The services include data science consulting, software development, infrastructure services, and the software solution DaSense.
44GF Score
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