Solution DynamicsNZSE:SDL 59 Gross Margin % is 26.61% as of Dec. 2025, which is 22% below its 10-year median of 34.23. GuruFocus rates NZSE:SDL with a GF Score™ of 59/100 and a GF Value™ of NZ$0.99 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 2,680 Software companies, Solution Dynamics ranks worse than 63.21% on this metric.
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
Solution Dynamics had a gross margin of 26.61% 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.
Solution Dynamics Gross Margin % Related Terms
Solution Dynamics Gross Margin % Historical Data
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The historical data trend for Solution Dynamics'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.
NZSE:SDL vs UBER, SHOP, CRM: Gross Margin % Comparison
For the Software - Application subindustry, Solution Dynamics'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.
Solution Dynamics Gross Margin % vs Software Industry
For the Software industry and Technology sector, Solution Dynamics's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Solution Dynamics'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.
Solution Dynamics (NZSE:SDL) has a Gross Margin % of 26.61% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Solution Dynamics and its competitors. This is 22% below median its historical median of 34.23. Over the past decade, Solution Dynamics' Gross Margin % has ranged from 30.21 to 34.23. According to the industry distribution chart, Solution Dynamics ranks #1694 out of 2680 companies in the Software industry, placing it in the top 63.2%.
Is Solution Dynamics' Gross Margin % too high?
Solution Dynamics' current Gross Margin % of 26.61% is 22% below median its 10-year median of 34.23. Over the past 10 years, this metric has ranged from a low of 30.21 to a high of 34.23. The Software industry median Gross Margin % is 40.45. Solution Dynamics' value of 26.61% is 34.2% below this industry median. Based on the distribution chart, Solution Dynamics ranks #1694 out of 2680 companies in the Software industry, which is below the industry midpoint. Overall, Solution Dynamics has a GF Score™ of 59/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Solution Dynamics' Gross Margin % compare to UBER and SHOP?
According to the Software industry distribution chart, Solution Dynamics ranks #1694 out of 2680 companies for Gross Margin %. This places Solution Dynamics in the lower half of its industry. The industry median Gross Margin % is 40.45. Solution Dynamics' value of 26.61% is 34.2% below this benchmark. Historically, Solution Dynamics' own Gross Margin % has ranged from 30.21 to 34.23 over the past decade. While the company's 10-year median is 34.23 vs. the industry median of 40.45, Solution Dynamics 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. Solution Dynamics's current Gross Margin % of 26.61% is 34.2% 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 Solution Dynamics 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. Solution Dynamics's current Gross Margin % is 26.61%, which is 22% below median its own 10-year median of 34.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Solution Dynamics stock overvalued right now?
Based on GuruFocus' analysis, Solution Dynamics (NZSE:SDL) is currently considered Significantly Undervalued. The stock's GF Value™ is NZ$0.99, compared to a current price of NZ$0.61 — trading 38.4% below its estimated fair value. The current Gross Margin % is 26.61%, which is 22% below median its 10-year median of 34.23 and 34.2% below the Software industry median of 40.45. Solution Dynamics' 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 Solution Dynamics (NZSE:SDL), the current Gross Margin % is 26.61% 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 Solution Dynamics (NZSE:SDL) Overvalued in 2026?
Based on GuruFocus' analysis, Solution Dynamics stock appears to be undervalued.
The current stock price of NZ$0.61 is trading 38.4% below its estimated GF Value™ of NZ$0.99.
GuruFocus considers Solution Dynamics to be Significantly Undervalued.
Key valuation signals for NZSE:SDL:
Gross Margin %: 26.61% (22% below median its 10-year median of 34.23)
GF Value™: NZ$0.99 vs. price of NZ$0.61 (38.4% below fair value)
Industry Position: 34.2% below the Software median (#1694 of 2680)
No single metric tells the full story. See the NZSE:SDL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Solution Dynamics Ltd is a company engaged in providing customer communications solutions. Its products and services are represented by revenue streams: Digital Printing & Document Handling Services; and Software and Technology, Outsourced services. Services include digital print and mail house processing for mail items like invoices, statements, and promotional materials. Software and Technology develop and markets its software products related to multi-channel marketing communications including digital asset management, communication templates, campaign management, document archiving, document composition, and desktop mail solutions among others. Its outsourced services elements are the post, freight, paper, and envelopes.
59GF Score
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