RWS HoldingsRWSPF 69 Gross Margin % is 41.63% as of Mar. 2026, which is 4% below its 10-year median of 43.56. GuruFocus rates RWSPF with a GF Score™ of 69/100 and a GF Value™ of $2.17 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 2,685 Software companies, RWS Holdings ranks better than 52.25% 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
RWS Holdings had a gross margin of 41.63% 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.
RWS Holdings Gross Margin % Related Terms
RWS Holdings Gross Margin % Historical Data
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The historical data trend for RWS 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.
RWSPF vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, RWS 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.
RWS Holdings Gross Margin % vs Software Industry
For the Software industry and Technology sector, RWS Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where RWS 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.
RWS Holdings (RWSPF) has a Gross Margin % of 41.63% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on RWS Holdings and its competitors. This is near median its historical median of 43.56. Over the past decade, RWS Holdings' Gross Margin % has ranged from 38.83 to 46.85. According to the industry distribution chart, RWS Holdings ranks #1282 out of 2685 companies in the Software industry, placing it in the top 47.7%.
Is RWS Holdings' Gross Margin % too high?
RWS Holdings' current Gross Margin % of 41.63% is near median its 10-year median of 43.56. Over the past 10 years, this metric has ranged from a low of 38.83 to a high of 46.85. The Software industry median Gross Margin % is 40.45. RWS Holdings' value of 41.63% is 2.9% above this industry median. Based on the distribution chart, RWS Holdings ranks #1282 out of 2685 companies in the Software industry, which is above the industry midpoint. Overall, RWS Holdings has a GF Score™ of 69/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does RWS Holdings' Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, RWS Holdings ranks #1282 out of 2685 companies for Gross Margin %. This puts RWS Holdings in the upper half of its industry. The industry median Gross Margin % is 40.45. RWS Holdings' value of 41.63% is 2.9% above this benchmark. Historically, RWS Holdings' own Gross Margin % has ranged from 38.83 to 46.85 over the past decade. While the company's 10-year median is 43.56 vs. the industry median of 40.45, RWS 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 2,685 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. RWS Holdings's current Gross Margin % of 41.63% is 2.9% 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 RWS 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. RWS Holdings's current Gross Margin % is 41.63%, which is near median its own 10-year median of 43.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is RWS Holdings stock overvalued right now?
Based on GuruFocus' analysis, RWS Holdings (RWSPF) is currently considered Possible Value Trap. The stock's GF Value™ is $2.17, compared to a current price of $0.92 — trading 57.6% below its estimated fair value. The current Gross Margin % is 41.63%, which is near median its 10-year median of 43.56 and 2.9% above the Software industry median of 40.45. RWS Holdings' overall GF Score™ is 69/100 with 7 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 RWS Holdings (RWSPF), the current Gross Margin % is 41.63% 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 RWS Holdings (RWSPF) Overvalued in 2026?
Based on GuruFocus' analysis, RWS Holdings stock appears to be undervalued.
The current stock price of $0.92 is trading 57.6% below its estimated GF Value™ of $2.17.
GuruFocus considers RWS Holdings to be Possible Value Trap.
Key valuation signals for RWSPF:
Gross Margin %: 41.63% (near median its 10-year median of 43.56)
GF Value™: $2.17 vs. price of $0.92 (57.6% below fair value)
Industry Position: 2.9% above the Software median (#1282 of 2685)
No single metric tells the full story. See the RWSPF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
RWS Holdings plc is a United Kingdom-based company. The group is a world-wide AI solutions company empowering the world's trusted enterprise AI. Through its Generate, Transform, and Protect segments, it delivers intelligent content, enterprise knowledge, large-scale localization, and IP protection for world-wide growth. The company provides the confidence, governance, and expertise organisations need to deploy AI safely, responsibly, and at scale.
69GF Score
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