Sopra Steria Group (XPAR:SOP) Gross Margin % : 13.74% (As of Dec. 2023)

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What is Sopra Steria Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Sopra Steria Group's Gross Profit for the six months ended in Dec. 2023 was €407 Mil. Sopra Steria Group's Revenue for the six months ended in Dec. 2023 was €2,965 Mil. Therefore, Sopra Steria Group's Gross Margin % for the quarter that ended in Dec. 2023 was 13.74%.

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

XPAR:SOP' s Gross Margin % Range Over the Past 10 Years
Min: 8.68 Med: 11.19 Max: 13.03
Current: 13.03

During the past 13 years, the highest Gross Margin % of Sopra Steria Group was 13.03%. The lowest was 8.68%. And the median was 11.19%.

XPAR:SOP's Gross Margin % is ranked worse than
89.9% of 2624 companies
in the Software industry
Industry Median: 41.67 vs XPAR:SOP: 13.03

Sopra Steria Group had a gross margin of 13.74% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Sopra Steria Group was 4.40% per year.

Sopra Steria Group Gross Margin % Historical Data

The historical data trend for Sopra Steria Group'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.

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Sopra Steria Group Gross Margin % Chart

Sopra Steria Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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11.98

12.27

12.60

12.14

13.03

Sopra Steria Group Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Gross Margin %	Get a 7-Day Free Trial															13.36	11.34	12.94	12.29	13.74

Competitive Comparison of Sopra Steria Group's Gross Margin %

For the Information Technology Services subindustry, Sopra Steria Group'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.

Sopra Steria Group's Gross Margin % Distribution in the Software Industry

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

* The bar in red indicates where Sopra Steria Group's Gross Margin % falls into.

Sopra Steria Group Gross Margin % Calculation

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

Sopra Steria Group's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	756.5	/	5805.3
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(5805.3 - 5048.8)	/	5805.3
	=	13.03 %

Sopra Steria Group's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	407.4	/	2965.2
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2965.2 - 2557.8)	/	2965.2
	=	13.74 %

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.

Sopra Steria Group (XPAR:SOP) 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

Sopra Steria Group had a gross margin of 13.74% for the quarter that ended in Dec. 2023 => 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.

Sopra Steria Group Gross Margin % Related Terms

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Sopra Steria Group (XPAR:SOP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Sopra Steria Group SA (XPAR:SOP) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

SPPSY:USA SOPp:UK 0NJQ:UK OR8:Germany

Address

9 bis, rue de Presbourg, Paris, FRA, 75116

Website

http://www.sopragroup.com

Sopra Steria Group SA is a digital transformation company. It guides businesses through conversion projects, from the development phase to implementation phase. The firm provides end to end services in the fields of consulting, systems integration, software development, infrastructure management and business process services. It's target markets are financial services, insurance and social welfare, public sector, telecom operators, aerospace and defense, retail and energy sectors. Its geographic segments are France, United Kingdom, Spain, Italy, and Belgium. The company derives the majority of its revenues from France.