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Edensoft HoldingsHKSE:01147 +2.68%63 Gross Margin % is 12.46% as of Dec. 2025, which is 5% above its 10-year median of 11.86. GuruFocus rates HKSE:01147 with a GF Score™ of 63/100 and a GF Value™ of HK$0.09 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 2,690 Software companies, Edensoft Holdings ranks worse than 89.81% 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
Edensoft Holdings had a gross margin of 12.46% for the quarter that ended in Dec. 2025 => No sustainable 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.
Edensoft Holdings Gross Margin % Related Terms
Edensoft Holdings Gross Margin % Historical Data
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The historical data trend for Edensoft 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.
HKSE:01147 vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, Edensoft 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.
Edensoft Holdings Gross Margin % vs Software Industry
For the Software industry and Technology sector, Edensoft Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Edensoft 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.
Edensoft Holdings (HKSE:01147) has a Gross Margin % of 12.46% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Edensoft Holdings and its competitors. This is near median its historical median of 11.86. Over the past decade, Edensoft Holdings' Gross Margin % has ranged from 9.91 to 12.74. According to the industry distribution chart, Edensoft Holdings ranks #2416 out of 2690 companies in the Software industry, placing it in the top 89.8%.
Is Edensoft Holdings' Gross Margin % too high?
Edensoft Holdings' current Gross Margin % of 12.46% is near median its 10-year median of 11.86. Over the past 10 years, this metric has ranged from a low of 9.91 to a high of 12.74. The Software industry median Gross Margin % is 40.56. Edensoft Holdings' value of 12.46% is 69.3% below this industry median. Based on the distribution chart, Edensoft Holdings ranks #2416 out of 2690 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Edensoft Holdings has a GF Score™ of 63/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Edensoft Holdings' Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Edensoft Holdings ranks #2416 out of 2690 companies for Gross Margin %. This places Edensoft Holdings in the lower half of its industry. The industry median Gross Margin % is 40.56. Edensoft Holdings' value of 12.46% is 69.3% below this benchmark. Historically, Edensoft Holdings' own Gross Margin % has ranged from 9.91 to 12.74 over the past decade. While the company's 10-year median is 11.86 vs. the industry median of 40.56, Edensoft 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 40.56, 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. Edensoft Holdings's current Gross Margin % of 12.46% is 69.3% 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 Edensoft Holdings and its competitors. For the Software industry, the median Gross Margin % is 40.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Edensoft Holdings's current Gross Margin % is 12.46%, which is near median its own 10-year median of 11.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Edensoft Holdings stock overvalued right now?
Based on GuruFocus' analysis, Edensoft Holdings (HKSE:01147) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$0.09, compared to a current price of HK$0.12 — trading 27.8% above its estimated fair value. The current Gross Margin % is 12.46%, which is near median its 10-year median of 11.86 and 69.3% below the Software industry median of 40.56. Edensoft Holdings' overall GF Score™ is 63/100 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 Edensoft Holdings (HKSE:01147), the current Gross Margin % is 12.46% 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 Edensoft Holdings (HKSE:01147) Overvalued in 2026?
Based on GuruFocus' analysis, Edensoft Holdings stock appears to be overvalued.
The current stock price of HK$0.12 is trading 27.8% above its estimated GF Value™ of HK$0.09.
GuruFocus considers Edensoft Holdings to be Modestly Overvalued.
Key valuation signals for HKSE:01147:
Gross Margin %: 12.46% (near median its 10-year median of 11.86)
GF Value™: HK$0.09 vs. price of HK$0.12 (27.8% above fair value)
Industry Position: 69.3% below the Software median (#2416 of 2690)
No single metric tells the full story. See the HKSE:01147 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AddressHua Fu Street, 1006 Shennan Road, West, 2nd Floor, Building A, Futian Technology Square, Shenzhen International Innovation Center, Futian District, Shenzhen, CHN
Edensoft Holdings Ltd is engaged in the provision of IT infrastructure services, IT implementation and support services, and cloud services in the PRC. Its segment includes IT infrastructure services, IT implementation and supporting services, and Cloud and AI services. It derives key revenue from the Cloud and AI services segment, which offers design, management, and technical support for using cloud platforms which include the self-developed cloud platform and other third-party cloud platforms, and provides consulting services and solutions related to AI technology. It operates in Mainland China and Hong Kong, of which the prime revenue is derived from Mainland China.
63GF Score
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