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EOH Holdings (JSE:EOH) Gross Margin % : 26.66% (As of Jan. 2024)


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What is EOH Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. EOH Holdings's Gross Profit for the six months ended in Jan. 2024 was R839 Mil. EOH Holdings's Revenue for the six months ended in Jan. 2024 was R3,146 Mil. Therefore, EOH Holdings's Gross Margin % for the quarter that ended in Jan. 2024 was 26.66%.


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

JSE:EOH' s Gross Margin % Range Over the Past 10 Years
Min: 16.44   Med: 28.16   Max: 35.85
Current: 26.8


During the past 13 years, the highest Gross Margin % of EOH Holdings was 35.85%. The lowest was 16.44%. And the median was 28.16%.

JSE:EOH's Gross Margin % is ranked worse than
70.38% of 2633 companies
in the Software industry
Industry Median: 41.79 vs JSE:EOH: 26.80

EOH Holdings had a gross margin of 26.66% for the quarter that ended in Jan. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for EOH Holdings was 5.30% per year.


EOH Holdings Gross Margin % Historical Data

The historical data trend for EOH Holdings'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.

* Premium members only.

EOH Holdings Gross Margin % Chart

EOH Holdings Annual Data
Trend Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 16.44 20.49 25.97 28.02 28.04

EOH Holdings Semi-Annual Data
Jul14 Jan15 Jul15 Jan16 Jul16 Jan17 Jul17 Jan18 Jul18 Jan19 Jul19 Jan20 Jul20 Jan21 Jul21 Jan22 Jul22 Jan23 Jul23 Jan24
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 28.89 27.16 29.05 26.96 26.66

Competitive Comparison of EOH Holdings's Gross Margin %

For the Information Technology Services subindustry, EOH Holdings'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.


EOH Holdings's Gross Margin % Distribution in the Software Industry

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

* The bar in red indicates where EOH Holdings's Gross Margin % falls into.



EOH Holdings Gross Margin % Calculation

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

EOH Holdings's Gross Margin for the fiscal year that ended in Jul. 2023 is calculated as

Gross Margin % (A: Jul. 2023 )=Gross Profit (A: Jul. 2023 ) / Revenue (A: Jul. 2023 )
=1746.5 / 6229.322
=(Revenue - Cost of Goods Sold) / Revenue
=(6229.322 - 4482.844) / 6229.322
=28.04 %

EOH Holdings's Gross Margin for the quarter that ended in Jan. 2024 is calculated as


Gross Margin % (Q: Jan. 2024 )=Gross Profit (Q: Jan. 2024 ) / Revenue (Q: Jan. 2024 )
=838.6 / 3145.755
=(Revenue - Cost of Goods Sold) / Revenue
=(3145.755 - 2307.205) / 3145.755
=26.66 %

* 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.


EOH Holdings  (JSE:EOH) 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

EOH Holdings had a gross margin of 26.66% for the quarter that ended in Jan. 2024 => Competition eroding margins


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.


EOH Holdings Gross Margin % Related Terms

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EOH Holdings (JSE:EOH) Business Description

Traded in Other Exchanges
N/A
Address
164 Katherine Street, 1st Floor, Block E, Pinmill Farm, Sandton, GT, ZAF, 2026
EOH Holdings Ltd is a South Africa-based firm offering IT services, software, IT infrastructure, industrial technologies, and outsourcing services. The company operates through three segments. iOCO segment consists of the Information and Communications Technology (ICT) operations in South Africa and internationally. NEXTEC segment consists of Industrial Technologies and Business Process Outsourcing. IP segment comprises proprietary software and solutions for customers.

EOH Holdings (JSE:EOH) Headlines

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