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Expert Systems HoldingsHKSE:08319 -0.93%55 Gross Margin % is 13.12% as of Mar. 2026, which is 8% below its 10-year median of 14.22. GuruFocus rates HKSE:08319 with a GF Score™ of 55/100 and a GF Value™ of HK$0.20 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 2,691 Software companies, Expert Systems Holdings ranks worse than 86.85% on this metric.
Expert Systems Holdings (HKSE:08319) 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
Expert Systems Holdings had a gross margin of 13.12% for the quarter that ended in Mar. 2026 => 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.
Expert Systems Holdings Gross Margin % Related Terms
Expert Systems 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.
HKSE:08319 vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, Expert Systems 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.
Expert Systems Holdings Gross Margin % vs Software Industry
For the Software industry and Technology sector, Expert Systems Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Expert Systems 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.
Expert Systems Holdings (HKSE:08319) has a Gross Margin % of 13.12% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Expert Systems Holdings and its competitors. This is near median its historical median of 14.22. Over the past decade, Expert Systems Holdings' Gross Margin % has ranged from 12.47 to 16.74. According to the industry distribution chart, Expert Systems Holdings ranks #2337 out of 2691 companies in the Software industry, placing it in the top 86.8%.
Is Expert Systems Holdings' Gross Margin % too high?
Expert Systems Holdings' current Gross Margin % of 13.12% is near median its 10-year median of 14.22. Over the past 10 years, this metric has ranged from a low of 12.47 to a high of 16.74. The Software industry median Gross Margin % is 40.78. Expert Systems Holdings' value of 13.12% is 67.8% below this industry median. Based on the distribution chart, Expert Systems Holdings ranks #2337 out of 2691 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Expert Systems Holdings has a GF Score™ of 55/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Expert Systems Holdings' Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Expert Systems Holdings ranks #2337 out of 2691 companies for Gross Margin %. This places Expert Systems Holdings in the lower half of its industry. The industry median Gross Margin % is 40.78. Expert Systems Holdings' value of 13.12% is 67.8% below this benchmark. Historically, Expert Systems Holdings' own Gross Margin % has ranged from 12.47 to 16.74 over the past decade. While the company's 10-year median is 14.22 vs. the industry median of 40.78, Expert Systems 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 40.78, based on 2,691 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. Expert Systems Holdings's current Gross Margin % of 13.12% is 67.8% 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 Expert Systems Holdings and its competitors. For the Software industry, the median Gross Margin % is 40.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Expert Systems Holdings's current Gross Margin % is 13.12%, which is near median its own 10-year median of 14.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Expert Systems Holdings stock overvalued right now?
Based on GuruFocus' analysis, Expert Systems Holdings (HKSE:08319) is currently considered Significantly Undervalued. The stock's GF Value™ is HK$0.20, compared to a current price of HK$0.11 — trading 46.5% below its estimated fair value. The current Gross Margin % is 13.12%, which is near median its 10-year median of 14.22 and 67.8% below the Software industry median of 40.78. Expert Systems Holdings' overall GF Score™ is 55/100 with 5 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 Expert Systems Holdings (HKSE:08319), the current Gross Margin % is 13.12% 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.
Is Expert Systems Holdings (HKSE:08319) Overvalued in 2026?
Based on GuruFocus' analysis, Expert Systems Holdings stock appears to be undervalued.
The current stock price of HK$0.11 is trading 46.5% below its estimated GF Value™ of HK$0.20.
GuruFocus considers Expert Systems Holdings to be Significantly Undervalued.
Key valuation signals for HKSE:08319:
Gross Margin %: 13.12% (near median its 10-year median of 14.22)
GF Value™: HK$0.20 vs. price of HK$0.11 (46.5% below fair value)
Industry Position: 67.8% below the Software median (#2337 of 2691)
No single metric tells the full story. See the HKSE:08319 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Expert Systems Holdings Ltd is an investment holding company. Along with its subsidiaries, the company is principally engaged in the provision of IT infrastructure solutions .The operating segments of the Company are the provision of IT infrastructure solutions, the provision of IT infrastructure management services and the provision of AI business. Its products and solutions comprise server and storage consolidation, backup and restore, desktop management, networking, infrastructure and management, and information security. The company serves a diverse range of markets including banking, finance, insurance, telecommunications, media, Hotel and government sector. Geographically, Hong Kong contributes to the vast majority of total revenue.
55GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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