The historical rank and industry rank for Cipher Digital's Gross Margin % or its related term are showing as below:
STU:3A9'
s Gross Margin % Range Over the Past 10 Years
Min: 12.38 Med: 23.49 Max: 75.37
Current: 12.38
During the past 5 years, the highestGross Margin % of Cipher Digital was 75.37%. The lowest was 12.38%. And the median was 23.49%.
STU:3A9's Gross Margin % is ranked worse than 89.46% of 2676
companies
in the Software industry
Industry Median: 40.5
vs STU:3A9: 12.38
Cipher Digital had a gross margin of -51.30% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Cipher Digital was 0.00% per year.
Cipher Digital (STU:3A9) 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
Cipher Digital had a gross margin of -51.30% for the quarter that ended in Mar. 2026 => No sustainable 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.
Cipher Digital Gross Margin % Related Terms
Cipher Digital Gross Margin % Historical Data
* Premium members only.
The historical data trend for Cipher Digital'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.
STU:3A9 vs CACI, APLD, JKHY: Gross Margin % Comparison
For the Information Technology Services subindustry, Cipher Digital'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.
Cipher Digital Gross Margin % vs Software Industry
For the Software industry and Technology sector, Cipher Digital's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Cipher Digital'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.
Cipher Digital (STU:3A9) has a Gross Margin % of -51.30% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Cipher Digital and its competitors. Over the past decade, Cipher Digital's Gross Margin % has ranged from 12.38 to 75.37. According to the industry distribution chart, Cipher Digital ranks #2394 out of 2676 companies in the Software industry, placing it in the top 89.5%.
Is Cipher Digital's Gross Margin % too high?
Cipher Digital's current Gross Margin % is -51.30%. Over the past 10 years, this metric has ranged from a low of 12.38 to a high of 75.37. Based on the distribution chart, Cipher Digital ranks #2394 out of 2676 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Cipher Digital has a GF Score™ of 16/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cipher Digital's Gross Margin % compare to CACI and APLD?
According to the Software industry distribution chart, Cipher Digital ranks #2394 out of 2676 companies for Gross Margin %. This places Cipher Digital in the lower half of its industry. The industry median Gross Margin % is 40.50. Historically, Cipher Digital's own Gross Margin % has ranged from 12.38 to 75.37 over the past decade. 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 40.50, based on 2,676 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. 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 Cipher Digital and its competitors. For the Software industry, the median Gross Margin % is 40.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cipher Digital's current Gross Margin % is -51.30%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cipher Digital stock overvalued right now?
Based on GuruFocus' analysis, Cipher Digital (STU:3A9) is currently considered Significantly Overvalued. The stock's GF Value™ is €5.49, compared to a current price of €17.81 — trading 224.4% above its estimated fair value. The current Gross Margin % is -51.30%. Cipher Digital's overall GF Score™ is 16/100 with 6 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 Cipher Digital (STU:3A9), the current Gross Margin % is -51.30% 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 Cipher Digital (STU:3A9) Overvalued in 2026?
Based on GuruFocus' analysis, Cipher Digital stock appears to be overvalued.
The current stock price of €17.81 is trading 224.4% above its estimated GF Value™ of €5.49.
GuruFocus considers Cipher Digital to be Significantly Overvalued.
Key valuation signals for STU:3A9:
Gross Margin %: -51.30%
GF Value™: €5.49 vs. price of €17.81 (224.4% above fair value)
No single metric tells the full story. See the STU:3A9 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cipher Digital Inc is focused on high-performance computing (HPC) data center development and operations. It is engaged in developing and operating data centers designed for HPC workloads. Its operations include managing power assets and capital allocation in response to market conditions and demand for AI-related computing capacity.
16GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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