WEXWEX +3.23%81 Gross Margin % is 58.43% as of Mar. 2026, which is 3% below its 10-year median of 60.47. GuruFocus rates WEX with a GF Score™ of 81/100 and a GF Value™ of $227.11 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 2,683 Software companies, WEX ranks better than 69.36% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. WEX's Gross Profit for the
three
months ended in Mar. 2026 was $394 Mil. WEX's Revenue for the
three
months ended in Mar. 2026 was $674 Mil. Therefore, WEX's Gross Margin % for the quarter that ended in Mar. 2026 was 58.43%.
The historical rank and industry rank for WEX's Gross Margin % or its related term are showing as below:
WEX'
s Gross Margin % Range Over the Past 10 Years
Min: 54.69 Med: 60.47 Max: 63.29
Current: 58.83
During the past 13 years, the highestGross Margin % of WEX was 63.29%. The lowest was 54.69%. And the median was 60.47%.
WEX's Gross Margin % is ranked better than 69.36% of 2683
companies
in the Software industry
Industry Median: 40.45
vs WEX: 58.83
WEX had a gross margin of 58.43% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for WEX was 0.30% per year.
WEX (NYSE:WEX) 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
WEX had a gross margin of 58.43% 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.
WEX Gross Margin % Related Terms
WEX Gross Margin % Historical Data
* Premium members only.
The historical data trend for WEX'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.
WEX vs NTSK, GTLB, BLSH: Gross Margin % Comparison
For the Software - Infrastructure subindustry, WEX'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.
WEX Gross Margin % vs Software Industry
For the Software industry and Technology sector, WEX's Gross Margin % distribution charts can be found below:
* The bar in red indicates where WEX'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.
WEX (WEX) has a Gross Margin % of 58.43% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on WEX and its competitors. This is near median its historical median of 60.47. Over the past decade, WEX's Gross Margin % has ranged from 54.69 to 63.29. According to the industry distribution chart, WEX ranks #822 out of 2683 companies in the Software industry, placing it in the top 30.6%.
Is WEX's Gross Margin % too high?
WEX's current Gross Margin % of 58.43% is near median its 10-year median of 60.47. Over the past 10 years, this metric has ranged from a low of 54.69 to a high of 63.29. The Software industry median Gross Margin % is 40.45. WEX's value of 58.43% is 44.4% above this industry median. Based on the distribution chart, WEX ranks #822 out of 2683 companies in the Software industry, which is above the industry midpoint. Overall, WEX has a GF Score™ of 81/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does WEX's Gross Margin % compare to NTSK and GTLB?
According to the Software industry distribution chart, WEX ranks #822 out of 2683 companies for Gross Margin %. This puts WEX in the upper half of its industry. The industry median Gross Margin % is 40.45. WEX's value of 58.43% is 44.4% above this benchmark. Historically, WEX's own Gross Margin % has ranged from 54.69 to 63.29 over the past decade. While the company's 10-year median is 60.47 vs. the industry median of 40.45, WEX 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 2,683 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. WEX's current Gross Margin % of 58.43% is 44.4% 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 WEX 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. WEX's current Gross Margin % is 58.43%, which is near median its own 10-year median of 60.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is WEX stock overvalued right now?
Based on GuruFocus' analysis, WEX (WEX) is currently considered Possible Value Trap. The stock's GF Value™ is $227.11, compared to a current price of $134.48 — trading 40.8% below its estimated fair value. The current Gross Margin % is 58.43%, which is near median its 10-year median of 60.47 and 44.4% above the Software industry median of 40.45. WEX's overall GF Score™ is 81/100 with 3 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 WEX (WEX), the current Gross Margin % is 58.43% 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 WEX (WEX) Overvalued in 2026?
Based on GuruFocus' analysis, WEX stock appears to be undervalued.
The current stock price of $134.48 is trading 40.8% below its estimated GF Value™ of $227.11.
GuruFocus considers WEX to be Possible Value Trap.
Key valuation signals for WEX:
Gross Margin %: 58.43% (near median its 10-year median of 60.47)
GF Value™: $227.11 vs. price of $134.48 (40.8% below fair value)
Industry Position: 44.4% above the Software median (#822 of 2683)
No single metric tells the full story. See the WEX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
WEX Inc is a commerce platform that provides seamlessly embedded, personalized payments solutions. The company operates three business segments: Mobility, Benefits, and Corporate Payments. Mobility segment, the top segment by revenue, provides fleet vehicle payment solutions, transaction processing, and information management services for commercial and government fleets. The Corporate Payments segment offers business-to-business payment processing and transaction monitoring services. The Benefits segment generates revenue from healthcare payment products and its consumer-directed software platform. Its prime end market is the United States of America.
81GF Score
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