Subgen AI ABSBAIF -36.09%37 Gross Margin % is 82.67% as of Mar. 2026, which is 73% above its 10-year median of 47.83. GuruFocus rates SBAIF with a GF Score™ of 37/100 and a GF Value™ of $133.85. The stock has 3 warning signs investors should review. Among 2,683 Software companies, Subgen AI AB ranks better than 93.66% on this metric.
The historical rank and industry rank for Subgen AI AB's Gross Margin % or its related term are showing as below:
SBAIF'
s Gross Margin % Range Over the Past 10 Years
Min: -1389.57 Med: 47.83 Max: 87.22
Current: 87.22
During the past 7 years, the highestGross Margin % of Subgen AI AB was 87.22%. The lowest was -1389.57%. And the median was 47.83%.
SBAIF's Gross Margin % is ranked better than 93.66% of 2683
companies
in the Software industry
Industry Median: 40.45
vs SBAIF: 87.22
Subgen AI AB had a gross margin of 82.67% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Subgen AI AB was 0.00% per year.
Subgen AI AB (OTCPK:SBAIF) 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
Subgen AI AB had a gross margin of 82.67% 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.
Subgen AI AB Gross Margin % Related Terms
Subgen AI AB Gross Margin % Historical Data
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The historical data trend for Subgen AI AB'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.
SBAIF vs MSFT, ORCL, PLTR: Gross Margin % Comparison
For the Software - Infrastructure subindustry, Subgen AI AB'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.
Subgen AI AB Gross Margin % vs Software Industry
For the Software industry and Technology sector, Subgen AI AB's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Subgen AI AB'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.
Subgen AI AB (SBAIF) has a Gross Margin % of 82.67% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Subgen AI AB and its competitors. This is 73% above median its historical median of 47.83. According to the industry distribution chart, Subgen AI AB ranks #170 out of 2683 companies in the Software industry, placing it in the top 6.3%.
Is Subgen AI AB's Gross Margin % too high?
Subgen AI AB's current Gross Margin % of 82.67% is 73% above median its 10-year median of 47.83. The Software industry median Gross Margin % is 40.45. Subgen AI AB's value of 82.67% is 104.4% above this industry median. Based on the distribution chart, Subgen AI AB ranks #170 out of 2683 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Subgen AI AB has a GF Score™ of 37/100, reflecting its overall financial health beyond just this single metric.
How does Subgen AI AB's Gross Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, Subgen AI AB ranks #170 out of 2683 companies for Gross Margin %. This places Subgen AI AB in the top 6% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.45. Subgen AI AB's value of 82.67% is 104.4% above this benchmark. While the company's 10-year median is 47.83 vs. the industry median of 40.45, Subgen AI AB 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. Subgen AI AB's current Gross Margin % of 82.67% is 104.4% 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 Subgen AI AB 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. Subgen AI AB's current Gross Margin % is 82.67%, which is 73% above median its own 10-year median of 47.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Subgen AI AB stock overvalued right now?
Subgen AI AB (SBAIF) has a current Gross Margin % of 82.67%. The stock's GF Value™ is $133.85, compared to a current price of $0.11 — trading 99.9% below its estimated fair value. The current Gross Margin % is 82.67%, which is 73% above median its 10-year median of 47.83 and 104.4% above the Software industry median of 40.45. Subgen AI AB's overall GF Score™ is 37/100 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 Subgen AI AB (SBAIF), the current Gross Margin % is 82.67% 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 Subgen AI AB (SBAIF) Overvalued in 2026?
Based on GuruFocus' analysis, Subgen AI AB stock appears to be undervalued.
The current stock price of $0.11 is trading 99.9% below its estimated GF Value™ of $133.85.
Key valuation signals for SBAIF:
Gross Margin %: 82.67% (73% above median its 10-year median of 47.83)
GF Value™: $133.85 vs. price of $0.11 (99.9% below fair value)
Industry Position: 104.4% above the Software median (#170 of 2683)
No single metric tells the full story. See the SBAIF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Subgen AI AB is an enterprise artificial intelligence company that develops both infrastructure and proprietary agent-centric AI-as-a-Service software, branded as Serenity Star. Its solutions are designed to scale and accelerate the adoption of AI across organizations. It is experiencing rapid growth, building data centers and delivering services to clients in sectors such as healthcare, energy, legal, and human resources. Subgen AI operates across Europe, Latin America, and the United States. The company's segment includes Serenity Star, Serenity Teams, AI Health, AI Infrastructure and Hardware, and Others. The firm generates the majority of its revenue from the Serenity Star segment. Geographically, the firm generates the majority of its revenue from Spain.
37GF Score
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