NSE:FIVESTAR's Gross Margin % is ranked better than 54.78% of 387
companies
in the Credit Services industry
Industry Median: 51.88
vs NSE:FIVESTAR: 56.95
Five-Star Business Finance had a gross margin of 56.54% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Five-Star Business Finance (NSE:FIVESTAR) 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
Five-Star Business Finance had a gross margin of 56.54% 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.
Five-Star Business Finance Gross Margin % Related Terms
Five-Star Business Finance 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.
NSE:FIVESTAR vs V, MA, AXP: Gross Margin % Comparison
For the Credit Services subindustry, Five-Star Business Finance'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.
Five-Star Business Finance Gross Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Five-Star Business Finance's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Five-Star Business Finance'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.
Five-Star Business Finance (NSE:FIVESTAR) has a Gross Margin % of 56.54% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Five-Star Business Finance and its competitors. This is near median its historical median of 56.95. Over the past decade, Five-Star Business Finance's Gross Margin % has ranged from 54.94 to 68.55. According to the industry distribution chart, Five-Star Business Finance ranks #175 out of 387 companies in the Credit Services industry, placing it in the top 45.2%.
Is Five-Star Business Finance's Gross Margin % too high?
Five-Star Business Finance's current Gross Margin % of 56.54% is near median its 10-year median of 56.95. Over the past 10 years, this metric has ranged from a low of 54.94 to a high of 68.55. The Credit Services industry median Gross Margin % is 51.88. Five-Star Business Finance's value of 56.54% is 9% above this industry median. Based on the distribution chart, Five-Star Business Finance ranks #175 out of 387 companies in the Credit Services industry, which is above the industry midpoint. Overall, Five-Star Business Finance has a GF Score™ of 82/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Five-Star Business Finance's Gross Margin % compare to V and MA?
According to the Credit Services industry distribution chart, Five-Star Business Finance ranks #175 out of 387 companies for Gross Margin %. This puts Five-Star Business Finance in the upper half of its industry. The industry median Gross Margin % is 51.88. Five-Star Business Finance's value of 56.54% is 9% above this benchmark. Historically, Five-Star Business Finance's own Gross Margin % has ranged from 54.94 to 68.55 over the past decade. While the company's 10-year median is 56.95 vs. the industry median of 51.88, Five-Star Business Finance 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 Credit Services company?
The median Gross Margin % among Credit Services companies is 51.88, based on 387 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. Five-Star Business Finance's current Gross Margin % of 56.54% is 9% 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 Five-Star Business Finance and its competitors. For the Credit Services industry, the median Gross Margin % is 51.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Five-Star Business Finance's current Gross Margin % is 56.54%, which is near median its own 10-year median of 56.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Five-Star Business Finance stock overvalued right now?
Based on GuruFocus' analysis, Five-Star Business Finance (NSE:FIVESTAR) is currently considered Possible Value Trap. The stock's GF Value™ is ₹981.23, compared to a current price of ₹505.10 — trading 48.5% below its estimated fair value. The current Gross Margin % is 56.54%, which is near median its 10-year median of 56.95 and 9% above the Credit Services industry median of 51.88. Five-Star Business Finance's overall GF Score™ is 82/100 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 Five-Star Business Finance (NSE:FIVESTAR), the current Gross Margin % is 56.54% 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 Five-Star Business Finance (NSE:FIVESTAR) Overvalued in 2026?
Based on GuruFocus' analysis, Five-Star Business Finance stock appears to be undervalued.
The current stock price of ₹505.10 is trading 48.5% below its estimated GF Value™ of ₹981.23.
GuruFocus considers Five-Star Business Finance to be Possible Value Trap.
Key valuation signals for NSE:FIVESTAR:
Gross Margin %: 56.54% (near median its 10-year median of 56.95)
GF Value™: ₹981.23 vs. price of ₹505.10 (48.5% below fair value)
Industry Position: 9% above the Credit Services median (#175 of 387)
No single metric tells the full story. See the NSE:FIVESTAR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Five-Star Business Finance Ltd provides secured loans to micro-entrepreneurs and self-employed individuals for business purposes, as well as for asset creation such as home renovation or improvement, or meeting expenses for economic events such as marriage, healthcare, and education.
82GF Score
Get the complete analysis for NSE:FIVESTAR
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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