Sage Group (The)SGPYY 84 Gross Margin % is 92.44% as of Mar. 2026, which is 1% below its 10-year median of 92.91. GuruFocus rates SGPYY with a GF Score™ of 84/100 and a GF Value™ of $72.98 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 2,685 Software companies, Sage Group (The) ranks better than 96.72% on this metric.
The historical rank and industry rank for Sage Group (The)'s Gross Margin % or its related term are showing as below:
SGPYY'
s Gross Margin % Range Over the Past 10 Years
Min: 92.56 Med: 92.91 Max: 93.68
Current: 92.56
During the past 13 years, the highestGross Margin % of Sage Group (The) was 93.68%. The lowest was 92.56%. And the median was 92.91%.
SGPYY's Gross Margin % is ranked better than 96.72% of 2685
companies
in the Software industry
Industry Median: 40.45
vs SGPYY: 92.56
Sage Group (The) had a gross margin of 92.44% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Sage Group (The) was -0.10% per year.
Sage Group (The) (OTCPK:SGPYY) 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
Sage Group (The) had a gross margin of 92.44% 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.
Sage Group (The) Gross Margin % Related Terms
Sage Group (The) Gross Margin % Historical Data
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The historical data trend for Sage Group (The)'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.
SGPYY vs CRM, SHOP, UBER: Gross Margin % Comparison
For the Software - Application subindustry, Sage Group (The)'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.
Sage Group (The) Gross Margin % vs Software Industry
For the Software industry and Technology sector, Sage Group (The)'s Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sage Group (The)'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.
Sage Group (The) (SGPYY) has a Gross Margin % of 92.44% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Sage Group (The) and its competitors. This is near median its historical median of 92.91. Over the past decade, Sage Group (The)'s Gross Margin % has ranged from 92.56 to 93.68. According to the industry distribution chart, Sage Group (The) ranks #88 out of 2685 companies in the Software industry, placing it in the top 3.3%.
Is Sage Group (The)'s Gross Margin % too high?
Sage Group (The)'s current Gross Margin % of 92.44% is near median its 10-year median of 92.91. Over the past 10 years, this metric has ranged from a low of 92.56 to a high of 93.68. The Software industry median Gross Margin % is 40.45. Sage Group (The)'s value of 92.44% is 128.5% above this industry median. Based on the distribution chart, Sage Group (The) ranks #88 out of 2685 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Sage Group (The) has a GF Score™ of 84/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sage Group (The)'s Gross Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, Sage Group (The) ranks #88 out of 2685 companies for Gross Margin %. This places Sage Group (The) in the top 3% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.45. Sage Group (The)'s value of 92.44% is 128.5% above this benchmark. Historically, Sage Group (The)'s own Gross Margin % has ranged from 92.56 to 93.68 over the past decade. While the company's 10-year median is 92.91 vs. the industry median of 40.45, Sage Group (The) 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. Sage Group (The)'s current Gross Margin % of 92.44% is 128.5% 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 Sage Group (The) 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. Sage Group (The)'s current Gross Margin % is 92.44%, which is near median its own 10-year median of 92.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sage Group (The) stock overvalued right now?
Based on GuruFocus' analysis, Sage Group (The) (SGPYY) is currently considered Significantly Undervalued. The stock's GF Value™ is $72.98, compared to a current price of $42.11 — trading 42.3% below its estimated fair value. The current Gross Margin % is 92.44%, which is near median its 10-year median of 92.91 and 128.5% above the Software industry median of 40.45. Sage Group (The)'s overall GF Score™ is 84/100 with 4 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 Sage Group (The) (SGPYY), the current Gross Margin % is 92.44% 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 Sage Group (The) (SGPYY) Overvalued in 2026?
Based on GuruFocus' analysis, Sage Group (The) stock appears to be undervalued.
The current stock price of $42.11 is trading 42.3% below its estimated GF Value™ of $72.98.
GuruFocus considers Sage Group (The) to be Significantly Undervalued.
Key valuation signals for SGPYY:
Gross Margin %: 92.44% (near median its 10-year median of 92.91)
GF Value™: $72.98 vs. price of $42.11 (42.3% below fair value)
Industry Position: 128.5% above the Software median (#88 of 2685)
No single metric tells the full story. See the SGPYY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Sage Group is a UK-based provider of accounting and enterprise resource planning software, predominantly to customers in the US and Europe. The company was founded in 1981 and historically sold on-premises software products with perpetual software licenses. However, the company is transitioning toward cloud-connected and cloud native products, sold via software-as-a-service contracts. Sage's main cloud-native products include Sage Accounting, for small businesses, and Sage Intacct, which Sage acquired in 2017, for midsize businesses.
84GF Score
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