LSI Software (WAR:LSI) Gross Margin %: 40.86% (As of Mar. 2026) — 46% Above Median

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WAR:LSI LSI Software SA WAR:LSI
78 GF Score
Price zł62.80
GF Value zł26.07
Valuation Significantly Overvalued
! 7 Warning Signs
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What is LSI Software Gross Margin %?

LSI Software WAR:LSI +5.37% 78 Gross Margin % is 40.86% as of Mar. 2026, which is 46% above its 10-year median of 27.97. GuruFocus rates WAR:LSI with a GF Score™ of 78/100 and a GF Value™ of zł26.07 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 2,685 Software companies, LSI Software ranks worse than 53.74% on this metric.

Gross Margin % is calculated as gross profit divided by its revenue. LSI Software's Gross Profit for the three months ended in Mar. 2026 was zł10.22 Mil. LSI Software's Revenue for the three months ended in Mar. 2026 was zł25.00 Mil. Therefore, LSI Software's Gross Margin % for the quarter that ended in Mar. 2026 was 40.86%.


The historical rank and industry rank for LSI Software's Gross Margin % or its related term are showing as below:

WAR:LSI' s Gross Margin % Range Over the Past 10 Years
Min: 19.4   Med: 27.97   Max: 37.41
Current: 37.41


During the past 13 years, the highest Gross Margin % of LSI Software was 37.41%. The lowest was 19.40%. And the median was 27.97%.

WAR:LSI's Gross Margin % is ranked worse than
53.74% of 2685 companies
in the Software industry
Industry Median: 40.49 vs WAR:LSI: 37.41

LSI Software had a gross margin of 40.86% for the quarter that ended in Mar. 2026 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for LSI Software was 9.70% per year.


LSI Software  (WAR:LSI) 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

LSI Software had a gross margin of 40.86% 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.


LSI Software Gross Margin % Related Terms


LSI Software Gross Margin % Historical Data

* Premium members only.

The historical data trend for LSI Software'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.

LSI Software Gross Margin % Chart

LSI Software Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 30.70 24.08 35.34 31.91 36.71

LSI Software Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 39.01 31.91 40.18 35.95 40.86

WAR:LSI vs UBER, SHOP, CRM: Gross Margin % Comparison

For the Software - Application subindustry, LSI Software'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.


LSI Software Gross Margin % vs Software Industry

For the Software industry and Technology sector, LSI Software's Gross Margin % distribution charts can be found below:

* The bar in red indicates where LSI Software's Gross Margin % falls into.


WAR:LSI
78GF Score
LSI Software SA WAR:LSI
Gross Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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LSI Software Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

LSI Software's Gross Margin for the fiscal year that ended in Dec. 2025 is calculated as

Gross Margin % (A: Dec. 2025 )=Gross Profit (A: Dec. 2025 ) / Revenue (A: Dec. 2025 )
=31.3 / 85.312
=(Revenue - Cost of Goods Sold) / Revenue
=(85.312 - 53.991) / 85.312
=36.71 %

LSI Software's Gross Margin for the quarter that ended in Mar. 2026 is calculated as


Gross Margin % (Q: Mar. 2026 )=Gross Profit (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=10.2 / 25.003
=(Revenue - Cost of Goods Sold) / Revenue
=(25.003 - 14.788) / 25.003
=40.86 %

* 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.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 40.86% mean?
LSI Software (WAR:LSI) has a Gross Margin % of 40.86% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on LSI Software and its competitors. This is 46% above median its historical median of 27.97. Over the past decade, LSI Software's Gross Margin % has ranged from 19.40 to 37.41. According to the industry distribution chart, LSI Software ranks #1443 out of 2685 companies in the Software industry, placing it in the top 53.7%.
Is LSI Software's Gross Margin % too high?
LSI Software's current Gross Margin % of 40.86% is 46% above median its 10-year median of 27.97. Over the past 10 years, this metric has ranged from a low of 19.40 to a high of 37.41. The Software industry median Gross Margin % is 40.49. LSI Software's value of 40.86% is 0.9% above this industry median. Based on the distribution chart, LSI Software ranks #1443 out of 2685 companies in the Software industry, which is below the industry midpoint. Overall, LSI Software has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does LSI Software's Gross Margin % compare to UBER and SHOP?
According to the Software industry distribution chart, LSI Software ranks #1443 out of 2685 companies for Gross Margin %. This places LSI Software in the lower half of its industry. The industry median Gross Margin % is 40.49. LSI Software's value of 40.86% is 0.9% above this benchmark. Historically, LSI Software's own Gross Margin % has ranged from 19.40 to 37.41 over the past decade. While the company's 10-year median is 27.97 vs. the industry median of 40.49, LSI Software 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 40.49, 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. LSI Software's current Gross Margin % of 40.86% is 0.9% 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 LSI Software and its competitors. For the Software industry, the median Gross Margin % is 40.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LSI Software's current Gross Margin % is 40.86%, which is 46% above median its own 10-year median of 27.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LSI Software stock overvalued right now?
Based on GuruFocus' analysis, LSI Software (WAR:LSI) is currently considered Significantly Overvalued. The stock's GF Value™ is zł26.07, compared to a current price of zł62.80 — trading 140.9% above its estimated fair value. The current Gross Margin % is 40.86%, which is 46% above median its 10-year median of 27.97 and 0.9% above the Software industry median of 40.49. LSI Software's overall GF Score™ is 78/100 with 7 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 LSI Software (WAR:LSI), the current Gross Margin % is 40.86% 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 LSI Software (WAR:LSI) Overvalued in 2026?

Based on GuruFocus' analysis, LSI Software stock appears to be overvalued. The current stock price of zł62.80 is trading 140.9% above its estimated GF Value™ of zł26.07. GuruFocus considers LSI Software to be Significantly Overvalued.

Key valuation signals for WAR:LSI:

  • Gross Margin %: 40.86% (46% above median its 10-year median of 27.97)
  • GF Value™: zł26.07 vs. price of zł62.80 (140.9% above fair value)
  • GF Score™: 78/100 with 7 warning signs
  • Industry Position: 0.9% above the Software median (#1443 of 2685)

No single metric tells the full story. See the WAR:LSI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


LSI Software Business Description

Address No. 176/178 Przybyszewskiego Street, Lodz, POL, 93-120
LSI Software SA is engaged in software development for retail and hospitality sectors as well as for cinema operators. It also involved in professional services, implementation services, maintenance, and the supplying of hardware solutions. The company products are bifurcated namely Bastion Enterprise Resource Planning (ERP), Positive Retail, Positive Hospitality and Expert computer hardware. The company derives majority of its revenues from the sale of the Software business and has operations spread across Poland. Its geographic segments include Poland and other countries.
78GF Score

Get the complete analysis for WAR:LSI

Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

zł62.80
Price
zł26.07
GF Value