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Locasystem international (XPAR:MLLOI) 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
Locasystem international had a gross margin of -37.77% for the quarter that ended in Mar. 2025 => 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.
Locasystem international Gross Margin % Related Terms
Locasystem international 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.
XPAR:MLLOI vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, Locasystem international'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.
Locasystem international Gross Margin % vs Software Industry
For the Software industry and Technology sector, Locasystem international's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Locasystem international'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.
Locasystem international (XPAR:MLLOI) has a Gross Margin % of -37.77% as of Mar. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Locasystem international and its competitors. According to the industry distribution chart, Locasystem international ranks #2633 out of 2684 companies in the Software industry, placing it in the top 98.1%.
Is Locasystem international's Gross Margin % too high?
Locasystem international's current Gross Margin % is -37.77%. Based on the distribution chart, Locasystem international ranks #2633 out of 2684 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Locasystem international has a GF Score™ of 69/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Locasystem international's Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Locasystem international ranks #2633 out of 2684 companies for Gross Margin %. This places Locasystem international in the lower half of its industry. The industry median Gross Margin % is 40.47. 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 40.47, based on 2,684 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 Locasystem international and its competitors. For the Software industry, the median Gross Margin % is 40.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Locasystem international's current Gross Margin % is -37.77%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Locasystem international stock overvalued right now?
Based on GuruFocus' analysis, Locasystem international (XPAR:MLLOI) is currently considered Modestly Undervalued. The stock's GF Value™ is €16.01, compared to a current price of €11.60 — trading 27.5% below its estimated fair value. The current Gross Margin % is -37.77%. Locasystem international's overall GF Score™ is 69/100 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 Locasystem international (XPAR:MLLOI), the current Gross Margin % is -37.77% as of Mar. 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 Locasystem international (XPAR:MLLOI) Overvalued in 2026?
Based on GuruFocus' analysis, Locasystem international stock appears to be undervalued.
The current stock price of €11.60 is trading 27.5% below its estimated GF Value™ of €16.01.
GuruFocus considers Locasystem international to be Modestly Undervalued.
Key valuation signals for XPAR:MLLOI:
Gross Margin %: -37.77%
GF Value™: €16.01 vs. price of €11.60 (27.5% below fair value)
No single metric tells the full story. See the XPAR:MLLOI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Locasystem international SA is engaged in the leasing of computer and office equipment. It leases devices and systems, micro-computing equipment, fax machines, regular and graphics workstations, networks and terminals and security systems.
69GF Score
Get the complete analysis for XPAR:MLLOI
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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