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Covance SoftSolBOM:544361 +0.93%19 Gross Margin % is 52.12% as of Mar. 2026, which is 5% below its 10-year median of 55.10. GuruFocus rates BOM:544361 with a GF Score™ of 19/100. The stock has 4 warning signs investors should review. Among 2,690 Software companies, Covance SoftSol ranks better than 66.77% on this metric.
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
Covance SoftSol had a gross margin of 52.12% for the quarter that ended in Mar. 2026 => 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.
Covance SoftSol Gross Margin % Related Terms
Covance SoftSol Gross Margin % Historical Data
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The historical data trend for Covance SoftSol'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.
BOM:544361 vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, Covance SoftSol'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.
Covance SoftSol Gross Margin % vs Software Industry
For the Software industry and Technology sector, Covance SoftSol's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Covance SoftSol'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.
Covance SoftSol (BOM:544361) has a Gross Margin % of 52.12% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Covance SoftSol and its competitors. This is near median its historical median of 55.10. Over the past decade, Covance SoftSol's Gross Margin % has ranged from 40.08 to 55.60. According to the industry distribution chart, Covance SoftSol ranks #894 out of 2690 companies in the Software industry, placing it in the top 33.2%.
Is Covance SoftSol's Gross Margin % too high?
Covance SoftSol's current Gross Margin % of 52.12% is near median its 10-year median of 55.10. Over the past 10 years, this metric has ranged from a low of 40.08 to a high of 55.60. The Software industry median Gross Margin % is 40.53. Covance SoftSol's value of 52.12% is 28.6% above this industry median. Based on the distribution chart, Covance SoftSol ranks #894 out of 2690 companies in the Software industry, which is above the industry midpoint. Overall, Covance SoftSol has a GF Score™ of 19/100, reflecting its overall financial health beyond just this single metric.
How does Covance SoftSol's Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Covance SoftSol ranks #894 out of 2690 companies for Gross Margin %. This puts Covance SoftSol in the upper half of its industry. The industry median Gross Margin % is 40.53. Covance SoftSol's value of 52.12% is 28.6% above this benchmark. Historically, Covance SoftSol's own Gross Margin % has ranged from 40.08 to 55.60 over the past decade. While the company's 10-year median is 55.10 vs. the industry median of 40.53, Covance SoftSol 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 40.53, based on 2,690 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. Covance SoftSol's current Gross Margin % of 52.12% is 28.6% 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 Covance SoftSol and its competitors. For the Software industry, the median Gross Margin % is 40.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Covance SoftSol's current Gross Margin % is 52.12%, which is near median its own 10-year median of 55.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Covance SoftSol stock overvalued right now?
Covance SoftSol (BOM:544361) has a current Gross Margin % of 52.12%. The current Gross Margin % is 52.12%, which is near median its 10-year median of 55.10 and 28.6% above the Software industry median of 40.53. Covance SoftSol's overall GF Score™ is 19/100 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 Covance SoftSol (BOM:544361), the current Gross Margin % is 52.12% as of Mar. 2026. 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.
Covance SoftSol Ltd is engaged in the business of information and technology services. It offers various services, including business process transformation, data transformation, enterprise application transformation, and tool-assisted modernization, by utilizing technologies such as cloud, artificial intelligence, machine learning, and provides data analytics solutions with an intuitive UX/UI design. The company caters to enterprises from different industries such as healthcare, media, manufacturing, government, insurance, etc. The firm generates a majority of its revenue through the export of services, and the rest from its domestic operations.
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