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EFT Solutions Holdings (HKSE:08062) Gross Margin % : 46.57% (As of Sep. 2023)


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What is EFT Solutions Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. EFT Solutions Holdings's Gross Profit for the three months ended in Sep. 2023 was HK$13.6 Mil. EFT Solutions Holdings's Revenue for the three months ended in Sep. 2023 was HK$29.2 Mil. Therefore, EFT Solutions Holdings's Gross Margin % for the quarter that ended in Sep. 2023 was 46.57%.

Warning Sign:

EFT Solutions Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -5.1%.


The historical rank and industry rank for EFT Solutions Holdings's Gross Margin % or its related term are showing as below:

HKSE:08062' s Gross Margin % Range Over the Past 10 Years
Min: 32.65   Med: 42.04   Max: 51.87
Current: 43.87


During the past 9 years, the highest Gross Margin % of EFT Solutions Holdings was 51.87%. The lowest was 32.65%. And the median was 42.04%.

HKSE:08062's Gross Margin % is ranked better than
52.2% of 2638 companies
in the Software industry
Industry Median: 41.845 vs HKSE:08062: 43.87

EFT Solutions Holdings had a gross margin of 46.57% for the quarter that ended in Sep. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for EFT Solutions Holdings was -5.10% per year.


EFT Solutions Holdings Gross Margin % Historical Data

The historical data trend for EFT Solutions 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.

* Premium members only.

EFT Solutions Holdings Gross Margin % Chart

EFT Solutions Holdings Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only 43.45 42.12 32.65 36.33 42.04

EFT Solutions Holdings Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 38.80 43.94 38.03 47.17 46.57

Competitive Comparison of EFT Solutions Holdings's Gross Margin %

For the Software - Infrastructure subindustry, EFT Solutions 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.


EFT Solutions Holdings's Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, EFT Solutions Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where EFT Solutions Holdings's Gross Margin % falls into.



EFT Solutions Holdings Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

EFT Solutions Holdings's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )=Gross Profit (A: Mar. 2023 ) / Revenue (A: Mar. 2023 )
=46.8 / 111.347
=(Revenue - Cost of Goods Sold) / Revenue
=(111.347 - 64.54) / 111.347
=42.04 %

EFT Solutions Holdings's Gross Margin for the quarter that ended in Sep. 2023 is calculated as


Gross Margin % (Q: Sep. 2023 )=Gross Profit (Q: Sep. 2023 ) / Revenue (Q: Sep. 2023 )
=13.6 / 29.174
=(Revenue - Cost of Goods Sold) / Revenue
=(29.174 - 15.587) / 29.174
=46.57 %

* 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.


EFT Solutions Holdings  (HKSE:08062) Gross Margin % Explanation

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

EFT Solutions Holdings had a gross margin of 46.57% for the quarter that ended in Sep. 2023 => 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.


EFT Solutions Holdings Gross Margin % Related Terms

Thank you for viewing the detailed overview of EFT Solutions Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


EFT Solutions Holdings (HKSE:08062) Business Description

Traded in Other Exchanges
N/A
Address
28-36 Kwai Fung Crescent, Workshops B1 & B3, 11th Floor, Yip Fung Industrial Building, Kwai Chung, New Territories, Hong Kong, HKG
EFT Solutions Holdings Ltd is engaged in the sourcing of electronic fund transfer point-of-sale (EFT-POS) solution providers focusing on the sourcing of EFT-POS terminals and peripheral devices and the provision of EFT-POS system support services in Hong Kong. Its segments consist of Sales of hardware devices, System support and software solution services. The majority of the revenue is derived from the provision of system support, software solution services, POS software solutions services and embedded system solution services.
Executives
Lam Ching Man 2202 Interest of your spouse
Lo Chun Kit Andrew 2101 Beneficial owner
Lck Group Limited 2101 Beneficial owner

EFT Solutions Holdings (HKSE:08062) Headlines

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