What is Alfa Financial Software Holdings Gross Margin %?
Alfa Financial Software HoldingsCHIX:ALFAL +2.11%82 Gross Margin % is 63.24% as of Dec. 2025, which is 3% below its 10-year median of 65.46. GuruFocus rates CHIX:ALFAL with a GF Score™ of 82/100 and a GF Value™ of £2.39 (Significantly Undervalued). Among 2,681 Software companies, Alfa Financial Software Holdings ranks better than 73.55% 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
Alfa Financial Software Holdings had a gross margin of 63.24% for the quarter that ended in Dec. 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.
Alfa Financial Software Holdings Gross Margin % Related Terms
Alfa Financial Software Holdings Gross Margin % Historical Data
* 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.
CHIX:ALFAL vs UBER, SHOP, CRM: Gross Margin % Comparison
For the Software - Application subindustry, Alfa Financial Software 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.
Alfa Financial Software Holdings Gross Margin % vs Software Industry
For the Software industry and Technology sector, Alfa Financial Software Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Alfa Financial Software 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.
Alfa Financial Software Holdings (CHIX:ALFAL) has a Gross Margin % of 63.24% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Alfa Financial Software Holdings and its competitors. This is near median its historical median of 65.46. Over the past decade, Alfa Financial Software Holdings' Gross Margin % has ranged from 62.45 to 77.19. According to the industry distribution chart, Alfa Financial Software Holdings ranks #709 out of 2681 companies in the Software industry, placing it in the top 26.4%.
Is Alfa Financial Software Holdings' Gross Margin % too high?
Alfa Financial Software Holdings' current Gross Margin % of 63.24% is near median its 10-year median of 65.46. Over the past 10 years, this metric has ranged from a low of 62.45 to a high of 77.19. The Software industry median Gross Margin % is 40.45. Alfa Financial Software Holdings' value of 63.24% is 56.3% above this industry median. Based on the distribution chart, Alfa Financial Software Holdings ranks #709 out of 2681 companies in the Software industry, which is above the industry midpoint. Overall, Alfa Financial Software Holdings has a GF Score™ of 82/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Alfa Financial Software Holdings' Gross Margin % compare to UBER and SHOP?
According to the Software industry distribution chart, Alfa Financial Software Holdings ranks #709 out of 2681 companies for Gross Margin %. This puts Alfa Financial Software Holdings in the upper half of its industry. The industry median Gross Margin % is 40.45. Alfa Financial Software Holdings' value of 63.24% is 56.3% above this benchmark. Historically, Alfa Financial Software Holdings' own Gross Margin % has ranged from 62.45 to 77.19 over the past decade. While the company's 10-year median is 65.46 vs. the industry median of 40.45, Alfa Financial Software Holdings 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 2,681 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. Alfa Financial Software Holdings's current Gross Margin % of 63.24% is 56.3% 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 Alfa Financial Software 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. Alfa Financial Software Holdings's current Gross Margin % is 63.24%, which is near median its own 10-year median of 65.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alfa Financial Software Holdings stock overvalued right now?
Based on GuruFocus' analysis, Alfa Financial Software Holdings (CHIX:ALFAL) is currently considered Significantly Undervalued. The stock's GF Value™ is £2.39, compared to a current price of £1.55 — trading 35.1% below its estimated fair value. The current Gross Margin % is 63.24%, which is near median its 10-year median of 65.46 and 56.3% above the Software industry median of 40.45. Alfa Financial Software Holdings' overall GF Score™ is 82/100. 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 Alfa Financial Software Holdings (CHIX:ALFAL), the current Gross Margin % is 63.24% 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 Alfa Financial Software Holdings (CHIX:ALFAL) Overvalued in 2026?
Based on GuruFocus' analysis, Alfa Financial Software Holdings stock appears to be undervalued.
The current stock price of £1.55 is trading 35.1% below its estimated GF Value™ of £2.39.
GuruFocus considers Alfa Financial Software Holdings to be Significantly Undervalued.
Key valuation signals for CHIX:ALFAL:
Gross Margin %: 63.24% (near median its 10-year median of 65.46)
GF Value™: £2.39 vs. price of £1.55 (35.1% below fair value)
Industry Position: 56.3% above the Software median (#709 of 2681)
No single metric tells the full story. See the CHIX:ALFAL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alfa Financial Software Holdings Business Description
Alfa Financial Software Holdings PLC is principally engaged in the provision of software and software-related services to the auto and equipment finance industry. Alfa Systems, its technology platform, supports both retail and corporate business for auto, equipment, wholesale, and dealer finance on a multijurisdictional basis, including leases/loans, originations, and servicing. The company has one operating and reporting segment, being the sale of software and related services. It generates the majority of its revenue from the EMEA and Americas and the rest from other regions.
82GF Score
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