Lexibook Linguistic Electronic System (XPAR:ALLEX) 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
Lexibook Linguistic Electronic System had a gross margin of 49.90% for the quarter that ended in Sep. 2025 => 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.
Lexibook Linguistic Electronic System Gross Margin % Related Terms
Lexibook Linguistic Electronic System 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.
Lexibook Linguistic Electronic System Gross Margin % Chart
XPAR:ALLEX vs AS, HAS, LTH: Gross Margin % Comparison
For the Leisure subindustry, Lexibook Linguistic Electronic System'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.
Lexibook Linguistic Electronic System Gross Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Lexibook Linguistic Electronic System's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Lexibook Linguistic Electronic System'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.
Lexibook Linguistic Electronic System (XPAR:ALLEX) has a Gross Margin % of 49.90% as of Sep. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Lexibook Linguistic Electronic System and its competitors. This is 14% above median its historical median of 43.65. Over the past decade, Lexibook Linguistic Electronic System's Gross Margin % has ranged from 31.79 to 52.09. According to the industry distribution chart, Lexibook Linguistic Electronic System ranks #322 out of 790 companies in the Travel & Leisure industry, placing it in the top 40.8%.
Is Lexibook Linguistic Electronic System's Gross Margin % too high?
Lexibook Linguistic Electronic System's current Gross Margin % of 49.90% is 14% above median its 10-year median of 43.65. Over the past 10 years, this metric has ranged from a low of 31.79 to a high of 52.09. The Travel & Leisure industry median Gross Margin % is 44.09. Lexibook Linguistic Electronic System's value of 49.90% is 13.2% above this industry median. Based on the distribution chart, Lexibook Linguistic Electronic System ranks #322 out of 790 companies in the Travel & Leisure industry, which is above the industry midpoint. Overall, Lexibook Linguistic Electronic System has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lexibook Linguistic Electronic System's Gross Margin % compare to AS and HAS?
According to the Travel & Leisure industry distribution chart, Lexibook Linguistic Electronic System ranks #322 out of 790 companies for Gross Margin %. This puts Lexibook Linguistic Electronic System in the upper half of its industry. The industry median Gross Margin % is 44.09. Lexibook Linguistic Electronic System's value of 49.90% is 13.2% above this benchmark. Historically, Lexibook Linguistic Electronic System's own Gross Margin % has ranged from 31.79 to 52.09 over the past decade. While the company's 10-year median is 43.65 vs. the industry median of 44.09, Lexibook Linguistic Electronic System 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 Travel & Leisure company?
The median Gross Margin % among Travel & Leisure companies is 44.09, based on 790 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. Lexibook Linguistic Electronic System's current Gross Margin % of 49.90% is 13.2% 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 Lexibook Linguistic Electronic System and its competitors. For the Travel & Leisure industry, the median Gross Margin % is 44.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lexibook Linguistic Electronic System's current Gross Margin % is 49.90%, which is 14% above median its own 10-year median of 43.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lexibook Linguistic Electronic System stock overvalued right now?
Based on GuruFocus' analysis, Lexibook Linguistic Electronic System (XPAR:ALLEX) is currently considered Significantly Overvalued. The stock's GF Value™ is €4.06, compared to a current price of €7.96 — trading 96.1% above its estimated fair value. The current Gross Margin % is 49.90%, which is 14% above median its 10-year median of 43.65 and 13.2% above the Travel & Leisure industry median of 44.09. Lexibook Linguistic Electronic System's overall GF Score™ is 71/100 with 5 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 Lexibook Linguistic Electronic System (XPAR:ALLEX), the current Gross Margin % is 49.90% as of Sep. 2025. 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 Lexibook Linguistic Electronic System (XPAR:ALLEX) Overvalued in 2026?
Based on GuruFocus' analysis, Lexibook Linguistic Electronic System stock appears to be overvalued.
The current stock price of €7.96 is trading 96.1% above its estimated GF Value™ of €4.06.
GuruFocus considers Lexibook Linguistic Electronic System to be Significantly Overvalued.
Key valuation signals for XPAR:ALLEX:
Gross Margin %: 49.90% (14% above median its 10-year median of 43.65)
GF Value™: €4.06 vs. price of €7.96 (96.1% above fair value)
Industry Position: 13.2% above the Travel & Leisure median (#322 of 790)
No single metric tells the full story. See the XPAR:ALLEX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lexibook Linguistic Electronic System Business Description
Lexibook Linguistic Electronic System SA is a France-based company engaged in producing and selling leisure electronic products and toys. It sells its products under its name and through licenses. The company's products include educational tablets, toys, laptops, alarm clocks, calculators, educational games, interactive games, audio and visual products, translators, and other products. It sells the products in France and also exports internationally. The group sells Electronics, Toys, and Other products, of which the majority of the revenue is generated from the sale of electronic products.
71GF Score
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