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
Pros Holdings had a gross margin of 68.87% for the quarter that ended in Sep. 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.
Pros Holdings Gross Margin % Related Terms
Pros Holdings Gross Margin % Historical Data
* Premium members only.
The historical data trend for Pros Holdings'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.
For the Software - Application subindustry, Pros Holdings'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.
Pros Holdings Gross Margin % vs Software Industry
For the Software industry and Technology sector, Pros Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Pros Holdings'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.
Pros Holdings (PRO) has a Gross Margin % of 68.87% as of Sep. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Pros Holdings and its competitors. This is 14% above median its historical median of 60.28. Over the past decade, Pros Holdings' Gross Margin % has ranged from 58.27 to 67.86.
Is Pros Holdings' Gross Margin % too high?
Pros Holdings' current Gross Margin % of 68.87% is 14% above median its 10-year median of 60.28. Over the past 10 years, this metric has ranged from a low of 58.27 to a high of 67.86. The Software industry median Gross Margin % is 40.45. Pros Holdings' value of 68.87% is 70.3% above this industry median. Overall, Pros Holdings has a GF Score™ of 58/100, reflecting its overall financial health beyond just this single metric.
How does Pros Holdings' Gross Margin % compare to PD and PDFS?
Pros Holdings' Gross Margin % of 68.87% can be compared against companies in the Software industry. The industry median Gross Margin % is 40.45. Pros Holdings' value of 68.87% is 70.3% above this benchmark. Historically, Pros Holdings' own Gross Margin % has ranged from 58.27 to 67.86 over the past decade. While the company's 10-year median is 60.28 vs. the industry median of 40.45, Pros Holdings 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 40.45, based on 2,683 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. Pros Holdings's current Gross Margin % of 68.87% is 70.3% 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 Pros Holdings 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. Pros Holdings's current Gross Margin % is 68.87%, which is 14% above median its own 10-year median of 60.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pros Holdings stock overvalued right now?
Pros Holdings (PRO) has a current Gross Margin % of 68.87%. The stock's GF Value™ is $30.38, compared to a current price of $23.25 — trading 23.5% below its estimated fair value. The current Gross Margin % is 68.87%, which is 14% above median its 10-year median of 60.28 and 70.3% above the Software industry median of 40.45. Pros Holdings' overall GF Score™ is 58/100 with 5 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 Pros Holdings (PRO), the current Gross Margin % is 68.87% as of Sep. 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 Pros Holdings (PRO) Overvalued in 2026?
Based on GuruFocus' analysis, Pros Holdings stock appears to be undervalued.
The current stock price of $23.25 is trading 23.5% below its estimated GF Value™ of $30.38.
Key valuation signals for PRO:
Gross Margin %: 68.87% (14% above median its 10-year median of 60.28)
GF Value™: $30.38 vs. price of $23.25 (23.5% below fair value)
Industry Position: 70.3% above the Software median
No single metric tells the full story. See the PRO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pros Holdings Inc provides software solutions that optimize shopping and selling experiences for both business-to-business and business-to-consumer companies across industry verticals in more than nearly 80 countries. Its PROS Platform is designed to help businesses create, optimize and market available offers and handle orders through both first- and third-party digital channels. The firm generates key revenue form the United States of America, Germany, The rest of Europe, Africa, Asia-Pacific, and Middle East regions.
58GF Score
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