CAC HoldingsCAXCF 59 Gross Margin % is 25.89% as of Dec. 2025, which is 12% above its 10-year median of 23.16. GuruFocus rates CAXCF with a GF Score™ of 59/100 and a GF Value™ of $11.63 (Fairly Valued). The stock has 2 warning signs investors should review. Among 2,685 Software companies, CAC Holdings ranks worse than 68.53% 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
CAC Holdings had a gross margin of 25.89% 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.
CAC Holdings Gross Margin % Related Terms
CAC Holdings Gross Margin % Historical Data
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The historical data trend for CAC Holdings'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.
CAXCF vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, CAC Holdings'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.
CAC Holdings Gross Margin % vs Software Industry
For the Software industry and Technology sector, CAC Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where CAC Holdings'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.
CAC Holdings (CAXCF) has a Gross Margin % of 25.89% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on CAC Holdings and its competitors. This is 12% above median its historical median of 23.16. Over the past decade, CAC Holdings' Gross Margin % has ranged from 19.28 to 26.54. According to the industry distribution chart, CAC Holdings ranks #1840 out of 2685 companies in the Software industry, placing it in the top 68.5%.
Is CAC Holdings' Gross Margin % too high?
CAC Holdings' current Gross Margin % of 25.89% is 12% above median its 10-year median of 23.16. Over the past 10 years, this metric has ranged from a low of 19.28 to a high of 26.54. The Software industry median Gross Margin % is 40.45. CAC Holdings' value of 25.89% is 36% below this industry median. Based on the distribution chart, CAC Holdings ranks #1840 out of 2685 companies in the Software industry, which is below the industry midpoint. Overall, CAC Holdings has a GF Score™ of 59/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does CAC Holdings' Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, CAC Holdings ranks #1840 out of 2685 companies for Gross Margin %. This places CAC Holdings in the lower half of its industry. The industry median Gross Margin % is 40.45. CAC Holdings' value of 25.89% is 36% below this benchmark. Historically, CAC Holdings' own Gross Margin % has ranged from 19.28 to 26.54 over the past decade. While the company's 10-year median is 23.16 vs. the industry median of 40.45, CAC Holdings 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. CAC Holdings's current Gross Margin % of 25.89% is 36% 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 CAC Holdings 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. CAC Holdings's current Gross Margin % is 25.89%, which is 12% above median its own 10-year median of 23.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CAC Holdings stock overvalued right now?
Based on GuruFocus' analysis, CAC Holdings (CAXCF) is currently considered Fairly Valued. The stock's GF Value™ is $11.63, compared to a current price of $11.25 — trading 3.3% below its estimated fair value. The current Gross Margin % is 25.89%, which is 12% above median its 10-year median of 23.16 and 36% below the Software industry median of 40.45. CAC Holdings' overall GF Score™ is 59/100 with 2 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 CAC Holdings (CAXCF), the current Gross Margin % is 25.89% 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 CAC Holdings (CAXCF) Overvalued in 2026?
Based on GuruFocus' analysis, CAC Holdings stock appears to be undervalued.
The current stock price of $11.25 is trading 3.3% below its estimated GF Value™ of $11.63.
GuruFocus considers CAC Holdings to be Fairly Valued.
Key valuation signals for CAXCF:
Gross Margin %: 25.89% (12% above median its 10-year median of 23.16)
GF Value™: $11.63 vs. price of $11.25 (3.3% below fair value)
Industry Position: 36% below the Software median (#1840 of 2685)
No single metric tells the full story. See the CAXCF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
CAC Holdings Corp is a Japan-based Information technology (IT) services, provider. The company is mainly engaged in systems development and systems operation. The company also provides outsourcing services, mainly in the field of Contract Research Organization (CRO) services. Other services offered by the company include systems consulting services, systems integration services, systems development services, systems maintenance services, Business process outsourcing (BPO) services, systems operation services, data center services, help desk services, desktop services, information processing services and software/hardware marketing.
59GF Score
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