Securelink NetworksASX:SN8 Gross Margin % is 32.11% as of Jun. 2025, which is 7% below its 10-year median of 34.61. The stock has 8 warning signs investors should review.
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
Securelink Networks had a gross margin of 32.11% for the quarter that ended in Jun. 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.
Securelink Networks Gross Margin % Related Terms
Securelink Networks Gross Margin % Historical Data
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The historical data trend for Securelink Networks'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:SN8 vs MSFT, ORCL, ADBE: Gross Margin % Comparison
For the Software - Infrastructure subindustry, Securelink Networks'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.
Securelink Networks Gross Margin % vs Software Industry
For the Software industry and Technology sector, Securelink Networks's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Securelink Networks'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.
Securelink Networks (ASX:SN8) has a Gross Margin % of 32.11% as of Jun. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Securelink Networks and its competitors. This is near median its historical median of 34.61. Over the past decade, Securelink Networks' Gross Margin % has ranged from 20.12 to 70.63.
Is Securelink Networks' Gross Margin % too high?
Securelink Networks' current Gross Margin % of 32.11% is near median its 10-year median of 34.61. Over the past 10 years, this metric has ranged from a low of 20.12 to a high of 70.63. The Software industry median Gross Margin % is 40.45. Securelink Networks' value of 32.11% is 20.6% below this industry median.
How does Securelink Networks' Gross Margin % compare to MSFT and ORCL?
Securelink Networks' Gross Margin % of 32.11% can be compared against companies in the Software industry. The industry median Gross Margin % is 40.45. Securelink Networks' value of 32.11% is 20.6% below this benchmark. Historically, Securelink Networks' own Gross Margin % has ranged from 20.12 to 70.63 over the past decade. While the company's 10-year median is 34.61 vs. the industry median of 40.45, Securelink Networks 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. Securelink Networks's current Gross Margin % of 32.11% is 20.6% 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 Securelink Networks 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. Securelink Networks's current Gross Margin % is 32.11%, which is near median its own 10-year median of 34.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Securelink Networks stock overvalued right now?
Securelink Networks (ASX:SN8) has a current Gross Margin % of 32.11%. The stock's GF Value™ is A$0.03, compared to a current price of A$0.15 — trading 400% above its estimated fair value. The current Gross Margin % is 32.11%, which is near median its 10-year median of 34.61 and 20.6% below the Software industry median of 40.45. 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 Securelink Networks (ASX:SN8), the current Gross Margin % is 32.11% 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.
Securelink Networks Ltd provides a cloud-based based cyber-secure, invisible Network-as-a-Service to enterprises, which allows them to enhance network security and improve connectivity. The company offers a flexible, secure, and simple solution that keeps businesses connected and protected.
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