EtherstackASX:ESK 44 Gross Margin % is 21.47% as of Dec. 2025, which is 62% below its 10-year median of 55.97. GuruFocus rates ASX:ESK with a GF Score™ of 44/100 and a GF Value™ of A$0.43 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 2,685 Software companies, Etherstack ranks better than 59.44% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Etherstack's Gross Profit for the
six
months ended in Dec. 2025 was A$1.22 Mil. Etherstack's Revenue for the
six
months ended in Dec. 2025 was A$5.67 Mil. Therefore, Etherstack's Gross Margin % for the quarter that ended in Dec. 2025 was 21.47%.
Warning Sign:
Etherstack PLC gross margin has been in long-term decline. The average rate of decline per year is -11.8%.
The historical rank and industry rank for Etherstack's Gross Margin % or its related term are showing as below:
ASX:ESK'
s Gross Margin % Range Over the Past 10 Years
Min: 23.61 Med: 55.97 Max: 72.88
Current: 48.57
During the past 13 years, the highestGross Margin % of Etherstack was 72.88%. The lowest was 23.61%. And the median was 55.97%.
ASX:ESK's Gross Margin % is ranked better than 59.44% of 2685
companies
in the Software industry
Industry Median: 40.45
vs ASX:ESK: 48.57
Etherstack had a gross margin of 21.47% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Etherstack was -11.80% per year.
Etherstack (ASX:ESK) 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
Etherstack had a gross margin of 21.47% 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.
Etherstack Gross Margin % Related Terms
Etherstack Gross Margin % Historical Data
* Premium members only.
The historical data trend for Etherstack'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:ESK vs CRM, SHOP, UBER: Gross Margin % Comparison
For the Software - Application subindustry, Etherstack'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.
Etherstack Gross Margin % vs Software Industry
For the Software industry and Technology sector, Etherstack's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Etherstack'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.
Etherstack (ASX:ESK) has a Gross Margin % of 21.47% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Etherstack and its competitors. This is 62% below median its historical median of 55.97. Over the past decade, Etherstack's Gross Margin % has ranged from 23.61 to 72.88. According to the industry distribution chart, Etherstack ranks #1089 out of 2685 companies in the Software industry, placing it in the top 40.6%.
Is Etherstack's Gross Margin % too high?
Etherstack's current Gross Margin % of 21.47% is 62% below median its 10-year median of 55.97. Over the past 10 years, this metric has ranged from a low of 23.61 to a high of 72.88. The Software industry median Gross Margin % is 40.45. Etherstack's value of 21.47% is 46.9% below this industry median. Based on the distribution chart, Etherstack ranks #1089 out of 2685 companies in the Software industry, which is above the industry midpoint. Overall, Etherstack has a GF Score™ of 44/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Etherstack's Gross Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, Etherstack ranks #1089 out of 2685 companies for Gross Margin %. This puts Etherstack in the upper half of its industry. The industry median Gross Margin % is 40.45. Etherstack's value of 21.47% is 46.9% below this benchmark. Historically, Etherstack's own Gross Margin % has ranged from 23.61 to 72.88 over the past decade. While the company's 10-year median is 55.97 vs. the industry median of 40.45, Etherstack 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. Etherstack's current Gross Margin % of 21.47% is 46.9% 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 Etherstack 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. Etherstack's current Gross Margin % is 21.47%, which is 62% below median its own 10-year median of 55.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Etherstack stock overvalued right now?
Based on GuruFocus' analysis, Etherstack (ASX:ESK) is currently considered Modestly Overvalued. The stock's GF Value™ is A$0.43, compared to a current price of A$0.54 — trading 25.6% above its estimated fair value. The current Gross Margin % is 21.47%, which is 62% below median its 10-year median of 55.97 and 46.9% below the Software industry median of 40.45. Etherstack's overall GF Score™ is 44/100 with 4 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 Etherstack (ASX:ESK), the current Gross Margin % is 21.47% 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 Etherstack (ASX:ESK) Overvalued in 2026?
Based on GuruFocus' analysis, Etherstack stock appears to be overvalued.
The current stock price of A$0.54 is trading 25.6% above its estimated GF Value™ of A$0.43.
GuruFocus considers Etherstack to be Modestly Overvalued.
Key valuation signals for ASX:ESK:
Gross Margin %: 21.47% (62% below median its 10-year median of 55.97)
GF Value™: A$0.43 vs. price of A$0.54 (25.6% above fair value)
Industry Position: 46.9% below the Software median (#1089 of 2685)
No single metric tells the full story. See the ASX:ESK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Etherstack PLC specializes in wireless communications technology. It designs, develops, and deploys wireless communications software and products. The company develops software for use in transceivers, which enables the transceiver to communicate with a radio network and other transceivers. In addition, it also licenses its software and designs to companies that manufacture telecommunication equipment for government, public safety agencies, and utilities. Geographically, the firm operates through the region of the United Kingdom, the United States, Japan, Australia, South Korea, and Canada.
44GF Score
Get the complete analysis for ASX:ESK
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ASX:ESK has been successfully added to your 
