Victory Capital Holdings (STU:3PK) 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
Victory Capital Holdings had a gross margin of 72.66% 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.
Victory Capital Holdings Gross Margin % Related Terms
Victory Capital Holdings 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.
STU:3PK vs OBDC, HASI, OTF: Gross Margin % Comparison
For the Asset Management subindustry, Victory Capital Holdings'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.
Victory Capital Holdings Gross Margin % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Victory Capital Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Victory Capital Holdings'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.
Victory Capital Holdings (STU:3PK) has a Gross Margin % of 72.66% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Victory Capital Holdings and its competitors. This is 38% above median its historical median of 52.60. Over the past decade, Victory Capital Holdings' Gross Margin % has ranged from 32.82 to 59.29. According to the industry distribution chart, Victory Capital Holdings ranks #278 out of 551 companies in the Asset Management industry, placing it in the top 50.5%.
Is Victory Capital Holdings' Gross Margin % too high?
Victory Capital Holdings' current Gross Margin % of 72.66% is 38% above median its 10-year median of 52.60. Over the past 10 years, this metric has ranged from a low of 32.82 to a high of 59.29. The Asset Management industry median Gross Margin % is 57.53. Victory Capital Holdings' value of 72.66% is 26.3% above this industry median. Based on the distribution chart, Victory Capital Holdings ranks #278 out of 551 companies in the Asset Management industry, which is below the industry midpoint. Overall, Victory Capital Holdings has a GF Score™ of 96/100, reflecting its overall financial health beyond just this single metric.
How does Victory Capital Holdings' Gross Margin % compare to OBDC and HASI?
According to the Asset Management industry distribution chart, Victory Capital Holdings ranks #278 out of 551 companies for Gross Margin %. This places Victory Capital Holdings in the lower half of its industry. The industry median Gross Margin % is 57.53. Victory Capital Holdings' value of 72.66% is 26.3% above this benchmark. Historically, Victory Capital Holdings' own Gross Margin % has ranged from 32.82 to 59.29 over the past decade. While the company's 10-year median is 52.60 vs. the industry median of 57.53, Victory Capital Holdings 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 an Asset Management company?
The median Gross Margin % among Asset Management companies is 57.53, based on 551 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. Victory Capital Holdings's current Gross Margin % of 72.66% is 26.3% 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 Victory Capital Holdings and its competitors. For the Asset Management industry, the median Gross Margin % is 57.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Victory Capital Holdings's current Gross Margin % is 72.66%, which is 38% above median its own 10-year median of 52.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Victory Capital Holdings stock overvalued right now?
Victory Capital Holdings (STU:3PK) has a current Gross Margin % of 72.66%. The stock's GF Value™ is €78.23, compared to a current price of €76.00 — trading 2.9% below its estimated fair value. The current Gross Margin % is 72.66%, which is 38% above median its 10-year median of 52.60 and 26.3% above the Asset Management industry median of 57.53. Victory Capital Holdings' overall GF Score™ is 96/100 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 Victory Capital Holdings (STU:3PK), the current Gross Margin % is 72.66% 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 Victory Capital Holdings (STU:3PK) Overvalued in 2026?
Based on GuruFocus' analysis, Victory Capital Holdings stock appears to be undervalued.
The current stock price of €76.00 is trading 2.9% below its estimated GF Value™ of €78.23.
Key valuation signals for STU:3PK:
Gross Margin %: 72.66% (38% above median its 10-year median of 52.60)
GF Value™: €78.23 vs. price of €76.00 (2.9% below fair value)
Industry Position: 26.3% above the Asset Management median (#278 of 551)
No single metric tells the full story. See the STU:3PK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Victory Capital Holdings Inc is a diversified investment management firm. The company provides specialized investment strategies to institutions, intermediaries, retirement platforms and individual investors. Its offerings include actively and passively managed mutual funds, rules-based and active exchange traded funds (ETFs), institutional separate accounts, variable insurance products (VIPs), alternative investments, private closed end funds, and a 529 Education Savings Plan. The company operates in one operating and reportable segment that provides investment management services and products to institutional, intermediary, retirement platforms and individual investors. The majority of the company's revenue consists of Investment management fees.
96GF Score
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