EML PaymentsASX:EML 27 Gross Margin % is 68.14% as of Jun. 2025, which is 4% below its 10-year median of 70.63. GuruFocus rates ASX:EML with a GF Score™ of 27/100 and a GF Value™ of A$0.80 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 2,685 Software companies, EML Payments ranks better than 75.08% on this metric.
EML Payments Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.3%.
The historical rank and industry rank for EML Payments's Gross Margin % or its related term are showing as below:
ASX:EML'
s Gross Margin % Range Over the Past 10 Years
Min: 59.81 Med: 70.63 Max: 77.14
Current: 65.1
During the past 13 years, the highestGross Margin % of EML Payments was 77.14%. The lowest was 59.81%. And the median was 70.63%.
ASX:EML's Gross Margin % is ranked better than 75.08% of 2685
companies
in the Software industry
Industry Median: 40.45
vs ASX:EML: 65.10
EML Payments had a gross margin of 68.14% for the quarter that ended in Jun. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for EML Payments was -1.30% per year.
EML Payments (ASX:EML) 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
EML Payments had a gross margin of 68.14% for the quarter that ended in Jun. 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.
EML Payments Gross Margin % Related Terms
EML Payments Gross Margin % Historical Data
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The historical data trend for EML Payments'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:EML vs MSFT, ORCL, PLTR: Gross Margin % Comparison
For the Software - Infrastructure subindustry, EML Payments'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.
EML Payments Gross Margin % vs Software Industry
For the Software industry and Technology sector, EML Payments's Gross Margin % distribution charts can be found below:
* The bar in red indicates where EML Payments'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.
EML Payments (ASX:EML) has a Gross Margin % of 68.14% as of Jun. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on EML Payments and its competitors. This is near median its historical median of 70.63. Over the past decade, EML Payments' Gross Margin % has ranged from 59.81 to 77.14. According to the industry distribution chart, EML Payments ranks #669 out of 2685 companies in the Software industry, placing it in the top 24.9%.
Is EML Payments' Gross Margin % too high?
EML Payments' current Gross Margin % of 68.14% is near median its 10-year median of 70.63. Over the past 10 years, this metric has ranged from a low of 59.81 to a high of 77.14. The Software industry median Gross Margin % is 40.45. EML Payments' value of 68.14% is 68.5% above this industry median. Based on the distribution chart, EML Payments ranks #669 out of 2685 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, EML Payments has a GF Score™ of 27/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does EML Payments' Gross Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, EML Payments ranks #669 out of 2685 companies for Gross Margin %. This places EML Payments in the top 25% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.45. EML Payments' value of 68.14% is 68.5% above this benchmark. Historically, EML Payments' own Gross Margin % has ranged from 59.81 to 77.14 over the past decade. While the company's 10-year median is 70.63 vs. the industry median of 40.45, EML Payments 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 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. EML Payments's current Gross Margin % of 68.14% is 68.5% 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 EML Payments 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. EML Payments's current Gross Margin % is 68.14%, which is near median its own 10-year median of 70.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is EML Payments stock overvalued right now?
Based on GuruFocus' analysis, EML Payments (ASX:EML) is currently considered Possible Value Trap. The stock's GF Value™ is A$0.80, compared to a current price of A$0.30 — trading 63.1% below its estimated fair value. The current Gross Margin % is 68.14%, which is near median its 10-year median of 70.63 and 68.5% above the Software industry median of 40.45. EML Payments' overall GF Score™ is 27/100 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 EML Payments (ASX:EML), the current Gross Margin % is 68.14% as of Jun. 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 EML Payments (ASX:EML) Overvalued in 2026?
Based on GuruFocus' analysis, EML Payments stock appears to be undervalued.
The current stock price of A$0.30 is trading 63.1% below its estimated GF Value™ of A$0.80.
GuruFocus considers EML Payments to be Possible Value Trap.
Key valuation signals for ASX:EML:
Gross Margin %: 68.14% (near median its 10-year median of 70.63)
GF Value™: A$0.80 vs. price of A$0.30 (63.1% below fair value)
Industry Position: 68.5% above the Software median (#669 of 2685)
No single metric tells the full story. See the ASX:EML stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
EML Payments is a financial technology company that operates across North America, Europe, and Australia. The firm builds the infrastructure for a customer to facilitate/accept payments via a prepaid card or in real-time. It makes money primarily via clipping a fee on payment transactions. It also earns fees from breakage, inactive accounts, cash establishments and interest on debit volumes. EML's payment solutions cater to a variety of applications including payouts, gifts, incentives, rewards, supplier payments, and more. The firm operates across three product offerings: gift and incentive cards, general purpose reloadable cards, and digital payments.
27GF Score
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