COSOLASX:COS 37 Gross Margin % is 28.81% as of Dec. 2025, which is 19% below its 10-year median of 35.70. GuruFocus rates ASX:COS with a GF Score™ of 37/100 and a GF Value™ of A$0.99 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 2,685 Software companies, COSOL ranks worse than 62.94% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. COSOL's Gross Profit for the
six
months ended in Dec. 2025 was A$14.3 Mil. COSOL's Revenue for the
six
months ended in Dec. 2025 was A$49.6 Mil. Therefore, COSOL's Gross Margin % for the quarter that ended in Dec. 2025 was 28.81%.
The historical rank and industry rank for COSOL's Gross Margin % or its related term are showing as below:
ASX:COS'
s Gross Margin % Range Over the Past 10 Years
Min: 30.55 Med: 35.7 Max: 38.43
Current: 30.55
During the past 6 years, the highestGross Margin % of COSOL was 38.43%. The lowest was 30.55%. And the median was 35.70%.
ASX:COS's Gross Margin % is ranked worse than 62.94% of 2685
companies
in the Software industry
Industry Median: 40.45
vs ASX:COS: 30.55
COSOL had a gross margin of 28.81% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for COSOL was 0.00% per year.
COSOL (ASX:COS) 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
COSOL had a gross margin of 28.81% for the quarter that ended in Dec. 2025 => 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.
COSOL Gross Margin % Related Terms
COSOL Gross Margin % Historical Data
* Premium members only.
The historical data trend for COSOL'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.
ASX:COS vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, COSOL'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.
COSOL Gross Margin % vs Software Industry
For the Software industry and Technology sector, COSOL's Gross Margin % distribution charts can be found below:
* The bar in red indicates where COSOL'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.
COSOL (ASX:COS) has a Gross Margin % of 28.81% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on COSOL and its competitors. This is 19% below median its historical median of 35.70. Over the past decade, COSOL's Gross Margin % has ranged from 30.55 to 38.43. According to the industry distribution chart, COSOL ranks #1690 out of 2685 companies in the Software industry, placing it in the top 62.9%.
Is COSOL's Gross Margin % too high?
COSOL's current Gross Margin % of 28.81% is 19% below median its 10-year median of 35.70. Over the past 10 years, this metric has ranged from a low of 30.55 to a high of 38.43. The Software industry median Gross Margin % is 40.45. COSOL's value of 28.81% is 28.8% below this industry median. Based on the distribution chart, COSOL ranks #1690 out of 2685 companies in the Software industry, which is below the industry midpoint. Overall, COSOL has a GF Score™ of 37/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does COSOL's Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, COSOL ranks #1690 out of 2685 companies for Gross Margin %. This places COSOL in the lower half of its industry. The industry median Gross Margin % is 40.45. COSOL's value of 28.81% is 28.8% below this benchmark. Historically, COSOL's own Gross Margin % has ranged from 30.55 to 38.43 over the past decade. While the company's 10-year median is 35.70 vs. the industry median of 40.45, COSOL has consistently been below 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 2,685 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. COSOL's current Gross Margin % of 28.81% is 28.8% below 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 COSOL 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. COSOL's current Gross Margin % is 28.81%, which is 19% below median its own 10-year median of 35.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is COSOL stock overvalued right now?
Based on GuruFocus' analysis, COSOL (ASX:COS) is currently considered Possible Value Trap. The stock's GF Value™ is A$0.99, compared to a current price of A$0.21 — trading 78.8% below its estimated fair value. The current Gross Margin % is 28.81%, which is 19% below median its 10-year median of 35.70 and 28.8% below the Software industry median of 40.45. COSOL's overall GF Score™ is 37/100 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 COSOL (ASX:COS), the current Gross Margin % is 28.81% as of Dec. 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 COSOL (ASX:COS) Overvalued in 2026?
Based on GuruFocus' analysis, COSOL stock appears to be undervalued.
The current stock price of A$0.21 is trading 78.8% below its estimated GF Value™ of A$0.99.
GuruFocus considers COSOL to be Possible Value Trap.
Key valuation signals for ASX:COS:
Gross Margin %: 28.81% (19% below median its 10-year median of 35.70)
GF Value™: A$0.99 vs. price of A$0.21 (78.8% below fair value)
Industry Position: 28.8% below the Software median (#1690 of 2685)
No single metric tells the full story. See the ASX:COS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
COSOL Ltd operates in the Information Technology(IT) and business services industry and provides EAM (enterprise asset management) related solutions and infrastructure-focused systems. It offers services such as digital business solutions which include business process and strategic reviews, implementation of enterprise resource planning (ERP)/EAM solutions, data migration, and ongoing support services to clients. The company's revenue is generated from EAM/ERP support services; data migration, and legacy data services. Its geographical segment includes COSOL Asia Pacific and COSOL North America. The company derives a majority of its revenue from the Asia Pacific region.
37GF Score
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