Sparta Commercial ServicesSRCO Gross Margin % is 94.57% as of Jan. 2026, which is 14% above its 10-year median of 82.91. The stock has 5 warning signs investors should review. Among 2,681 Software companies, Sparta Commercial Services ranks better than 96.34% 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
Sparta Commercial Services had a gross margin of 94.57% for the quarter that ended in Jan. 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.
Sparta Commercial Services Gross Margin % Related Terms
Sparta Commercial Services Gross Margin % Historical Data
* 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.
SRCO vs QGSI, WCT, MASK: Gross Margin % Comparison
For the Software - Application subindustry, Sparta Commercial Services'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.
Sparta Commercial Services Gross Margin % vs Software Industry
For the Software industry and Technology sector, Sparta Commercial Services's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sparta Commercial Services'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.
Sparta Commercial Services (SRCO) has a Gross Margin % of 94.57% as of Jan. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Sparta Commercial Services and its competitors. This is 14% above median its historical median of 82.91. Over the past decade, Sparta Commercial Services' Gross Margin % has ranged from 76.54 to 92.21. According to the industry distribution chart, Sparta Commercial Services ranks #98 out of 2681 companies in the Software industry, placing it in the top 3.7%.
Is Sparta Commercial Services' Gross Margin % too high?
Sparta Commercial Services' current Gross Margin % of 94.57% is 14% above median its 10-year median of 82.91. Over the past 10 years, this metric has ranged from a low of 76.54 to a high of 92.21. The Software industry median Gross Margin % is 40.45. Sparta Commercial Services' value of 94.57% is 133.8% above this industry median. Based on the distribution chart, Sparta Commercial Services ranks #98 out of 2681 companies in the Software industry, which is in the top quartile — a strong position relative to peers.
How does Sparta Commercial Services' Gross Margin % compare to QGSI and WCT?
According to the Software industry distribution chart, Sparta Commercial Services ranks #98 out of 2681 companies for Gross Margin %. This places Sparta Commercial Services in the top 4% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.45. Sparta Commercial Services' value of 94.57% is 133.8% above this benchmark. Historically, Sparta Commercial Services' own Gross Margin % has ranged from 76.54 to 92.21 over the past decade. While the company's 10-year median is 82.91 vs. the industry median of 40.45, Sparta Commercial Services 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 2,681 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. Sparta Commercial Services's current Gross Margin % of 94.57% is 133.8% 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 Sparta Commercial Services 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. Sparta Commercial Services's current Gross Margin % is 94.57%, which is 14% above median its own 10-year median of 82.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sparta Commercial Services stock overvalued right now?
Based on GuruFocus' analysis, Sparta Commercial Services (SRCO) is currently considered Modestly Undervalued. The stock's GF Value™ is $0.11, compared to a current price of $0.09 — trading 17.9% below its estimated fair value. The current Gross Margin % is 94.57%, which is 14% above median its 10-year median of 82.91 and 133.8% above the Software industry median of 40.45. 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 Sparta Commercial Services (SRCO), the current Gross Margin % is 94.57% as of Jan. 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.
Sparta Commercial Services Inc through its subsidiaries offers technology products and services. The company develops, manages, and markets its business mobile applications for smartphones and tablets. Its mobile application offerings range from racetracks, private clubs, country clubs, restaurants, and grocery stores. The company serves small and medium-size businesses under the tradename iMobileApp. It generates revenue from Information Technology, Wellness products, and Merchant financing.
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