Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
TextMagic ASOTSE:MAGIC -0.56%58 Gross Margin % is 44.98% as of Dec. 2025, which is 45% below its 10-year median of 81.28. GuruFocus rates OTSE:MAGIC with a GF Score™ of 58/100 and a GF Value™ of €3.78 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 2,684 Software companies, TextMagic AS ranks better than 74.07% on this metric.
The historical rank and industry rank for TextMagic AS's Gross Margin % or its related term are showing as below:
OTSE:MAGIC'
s Gross Margin % Range Over the Past 10 Years
Min: 63.86 Med: 81.28 Max: 92.8
Current: 63.86
During the past 5 years, the highestGross Margin % of TextMagic AS was 92.80%. The lowest was 63.86%. And the median was 81.28%.
OTSE:MAGIC's Gross Margin % is ranked better than 74.07% of 2684
companies
in the Software industry
Industry Median: 40.465
vs OTSE:MAGIC: 63.86
TextMagic AS had a gross margin of 44.98% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for TextMagic AS was 0.00% per year.
TextMagic AS (OTSE:MAGIC) 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
TextMagic AS had a gross margin of 44.98% 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.
TextMagic AS Gross Margin % Related Terms
TextMagic AS Gross Margin % Historical Data
* Premium members only.
The historical data trend for TextMagic AS'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.
OTSE:MAGIC vs UBER, SHOP, CRM: Gross Margin % Comparison
For the Software - Application subindustry, TextMagic AS'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.
TextMagic AS Gross Margin % vs Software Industry
For the Software industry and Technology sector, TextMagic AS's Gross Margin % distribution charts can be found below:
* The bar in red indicates where TextMagic AS'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.
TextMagic AS (OTSE:MAGIC) has a Gross Margin % of 44.98% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on TextMagic AS and its competitors. This is 45% below median its historical median of 81.28. Over the past decade, TextMagic AS's Gross Margin % has ranged from 63.86 to 92.80. According to the industry distribution chart, TextMagic AS ranks #696 out of 2684 companies in the Software industry, placing it in the top 25.9%.
Is TextMagic AS's Gross Margin % too high?
TextMagic AS's current Gross Margin % of 44.98% is 45% below median its 10-year median of 81.28. Over the past 10 years, this metric has ranged from a low of 63.86 to a high of 92.80. The Software industry median Gross Margin % is 40.47. TextMagic AS's value of 44.98% is 11.2% above this industry median. Based on the distribution chart, TextMagic AS ranks #696 out of 2684 companies in the Software industry, which is above the industry midpoint. Overall, TextMagic AS has a GF Score™ of 58/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does TextMagic AS's Gross Margin % compare to UBER and SHOP?
According to the Software industry distribution chart, TextMagic AS ranks #696 out of 2684 companies for Gross Margin %. This puts TextMagic AS in the upper half of its industry. The industry median Gross Margin % is 40.47. TextMagic AS's value of 44.98% is 11.2% above this benchmark. Historically, TextMagic AS's own Gross Margin % has ranged from 63.86 to 92.80 over the past decade. While the company's 10-year median is 81.28 vs. the industry median of 40.47, TextMagic AS 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 40.47, based on 2,684 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. TextMagic AS's current Gross Margin % of 44.98% is 11.2% 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 TextMagic AS and its competitors. For the Software industry, the median Gross Margin % is 40.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TextMagic AS's current Gross Margin % is 44.98%, which is 45% below median its own 10-year median of 81.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TextMagic AS stock overvalued right now?
Based on GuruFocus' analysis, TextMagic AS (OTSE:MAGIC) is currently considered Possible Value Trap. The stock's GF Value™ is €3.78, compared to a current price of €1.77 — trading 53.2% below its estimated fair value. The current Gross Margin % is 44.98%, which is 45% below median its 10-year median of 81.28 and 11.2% above the Software industry median of 40.47. TextMagic AS's overall GF Score™ is 58/100 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 TextMagic AS (OTSE:MAGIC), the current Gross Margin % is 44.98% 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 TextMagic AS (OTSE:MAGIC) Overvalued in 2026?
Based on GuruFocus' analysis, TextMagic AS stock appears to be undervalued.
The current stock price of €1.77 is trading 53.2% below its estimated GF Value™ of €3.78.
GuruFocus considers TextMagic AS to be Possible Value Trap.
Key valuation signals for OTSE:MAGIC:
Gross Margin %: 44.98% (45% below median its 10-year median of 81.28)
GF Value™: €3.78 vs. price of €1.77 (53.2% below fair value)
Industry Position: 11.2% above the Software median (#696 of 2684)
No single metric tells the full story. See the OTSE:MAGIC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
TextMagic AS is a text messaging company that helps businesses engage with customers. The Group's activities include the management and development of software products. The company operates mainly in the U.S., the U.K., Canada, Australia, and other countries. TextMagic enables companies to transform customer experiences through its text messaging marketing software, which can be used to send notifications, alerts, reminders, confirmations, and SMS marketing campaigns anytime, anywhere. Its product and service lines include text messaging services, which generate maximum revenue, virtual mobile number services, other TextMagic platform services, and the Voog.com platform. The company derives the majority of its revenue from the United States.
58GF Score
Get the complete analysis for OTSE:MAGIC
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
OTSE:MAGIC has been successfully added to your 
