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Digital Research CoSAU:9621 +15.08%20 Gross Margin % is 25.21% as of Dec. 2025, which is 25% below its 10-year median of 33.42. GuruFocus rates SAU:9621 with a GF Score™ of 20/100. The stock has 3 warning signs investors should review. Among 1,006 Business Services companies, Digital Research Co ranks worse than 76.14% on this metric.
Digital Research Co (SAU:9621) 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
Digital Research Co had a gross margin of 25.21% 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.
Digital Research Co Gross Margin % Related Terms
Digital Research Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Digital Research Co'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.
Digital Research Co Gross Margin % Chart
Digital Research Co Annual Data
Trend
Dec23
Dec24
Dec25
Gross Margin %
36.51
33.42
20.58
Digital Research Co Semi-Annual Data
Dec23
Jun24
Dec24
Jun25
Dec25
Gross Margin %
0.00
35.02
32.16
15.84
25.21
SAU:9621 vs VRSK, EFX, BAH: Gross Margin % Comparison
For the Consulting Services subindustry, Digital Research Co'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.
Digital Research Co Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Digital Research Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Digital Research Co'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.
Digital Research Co (SAU:9621) has a Gross Margin % of 25.21% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Digital Research Co and its competitors. This is 25% below median its historical median of 33.42. Over the past decade, Digital Research Co's Gross Margin % has ranged from 20.58 to 36.51. According to the industry distribution chart, Digital Research Co ranks #766 out of 1006 companies in the Business Services industry, placing it in the top 76.1%.
Is Digital Research Co's Gross Margin % too high?
Digital Research Co's current Gross Margin % of 25.21% is 25% below median its 10-year median of 33.42. Over the past 10 years, this metric has ranged from a low of 20.58 to a high of 36.51. The Business Services industry median Gross Margin % is 34.58. Digital Research Co's value of 25.21% is 27.1% below this industry median. Based on the distribution chart, Digital Research Co ranks #766 out of 1006 companies in the Business Services industry, which is in the bottom quartile relative to peers. Overall, Digital Research Co has a GF Score™ of 20/100, reflecting its overall financial health beyond just this single metric.
How does Digital Research Co's Gross Margin % compare to VRSK and EFX?
According to the Business Services industry distribution chart, Digital Research Co ranks #766 out of 1006 companies for Gross Margin %. This places Digital Research Co in the lower half of its industry. The industry median Gross Margin % is 34.58. Digital Research Co's value of 25.21% is 27.1% below this benchmark. Historically, Digital Research Co's own Gross Margin % has ranged from 20.58 to 36.51 over the past decade. While the company's 10-year median is 33.42 vs. the industry median of 34.58, Digital Research Co 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 Business Services company?
The median Gross Margin % among Business Services companies is 34.58, based on 1,006 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. Digital Research Co's current Gross Margin % of 25.21% is 27.1% 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 Digital Research Co and its competitors. For the Business Services industry, the median Gross Margin % is 34.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Digital Research Co's current Gross Margin % is 25.21%, which is 25% below median its own 10-year median of 33.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Digital Research Co stock overvalued right now?
Digital Research Co (SAU:9621) has a current Gross Margin % of 25.21%. The current Gross Margin % is 25.21%, which is 25% below median its 10-year median of 33.42 and 27.1% below the Business Services industry median of 34.58. Digital Research Co's overall GF Score™ is 20/100 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 Digital Research Co (SAU:9621), the current Gross Margin % is 25.21% 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.
Digital Research Co is a joint stock consulting company specializing in Market Research and Data Analytics with international expertise and local talent. It takes pride in its capabilities, approach, adoption of state of the art technologies and deep cultural understanding to serve as a trusted advisor to its clients. The company derives majority of its revenue from Saudi Arabia only.
20GF Score
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