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Elephant Holdings GroupHKSE:08635 +1.89%58 Gross Margin % is 17.09% as of Mar. 2026, which is 69% below its 10-year median of 55.39. GuruFocus rates HKSE:08635 with a GF Score™ of 58/100 and a GF Value™ of HK$0.71 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 2,690 Software companies, Elephant Holdings Group ranks worse than 86.02% on this metric.
Elephant Holdings Group (HKSE:08635) 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
Elephant Holdings Group had a gross margin of 17.09% 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.
Elephant Holdings Group Gross Margin % Related Terms
Elephant Holdings Group 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:08635 vs QH, SHOP, UBER: Gross Margin % Comparison
For the Software - Application subindustry, Elephant Holdings Group'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.
Elephant Holdings Group Gross Margin % vs Software Industry
For the Software industry and Technology sector, Elephant Holdings Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Elephant Holdings Group'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.
Elephant Holdings Group (HKSE:08635) has a Gross Margin % of 17.09% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Elephant Holdings Group and its competitors. This is 69% below median its historical median of 55.39. According to the industry distribution chart, Elephant Holdings Group ranks #2314 out of 2690 companies in the Software industry, placing it in the top 86%.
Is Elephant Holdings Group's Gross Margin % too high?
Elephant Holdings Group's current Gross Margin % of 17.09% is 69% below median its 10-year median of 55.39. The Software industry median Gross Margin % is 40.76. Elephant Holdings Group's value of 17.09% is 58.1% below this industry median. Based on the distribution chart, Elephant Holdings Group ranks #2314 out of 2690 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Elephant Holdings Group has a GF Score™ of 58/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Elephant Holdings Group's Gross Margin % compare to QH and SHOP?
According to the Software industry distribution chart, Elephant Holdings Group ranks #2314 out of 2690 companies for Gross Margin %. This places Elephant Holdings Group in the lower half of its industry. The industry median Gross Margin % is 40.76. Elephant Holdings Group's value of 17.09% is 58.1% below this benchmark. While the company's 10-year median is 55.39 vs. the industry median of 40.76, Elephant Holdings Group 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 40.76, 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. Elephant Holdings Group's current Gross Margin % of 17.09% is 58.1% 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 Elephant Holdings Group and its competitors. For the Software industry, the median Gross Margin % is 40.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Elephant Holdings Group's current Gross Margin % is 17.09%, which is 69% below median its own 10-year median of 55.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Elephant Holdings Group stock overvalued right now?
Based on GuruFocus' analysis, Elephant Holdings Group (HKSE:08635) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.71, compared to a current price of HK$0.27 — trading 62% below its estimated fair value. The current Gross Margin % is 17.09%, which is 69% below median its 10-year median of 55.39 and 58.1% below the Software industry median of 40.76. Elephant Holdings Group's overall GF Score™ is 58/100 with 4 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 Elephant Holdings Group (HKSE:08635), the current Gross Margin % is 17.09% 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 Elephant Holdings Group (HKSE:08635) Overvalued in 2026?
Based on GuruFocus' analysis, Elephant Holdings Group stock appears to be undervalued.
The current stock price of HK$0.27 is trading 62% below its estimated GF Value™ of HK$0.71.
GuruFocus considers Elephant Holdings Group to be Possible Value Trap.
Key valuation signals for HKSE:08635:
Gross Margin %: 17.09% (69% below median its 10-year median of 55.39)
GF Value™: HK$0.71 vs. price of HK$0.27 (62% below fair value)
Industry Position: 58.1% below the Software median (#2314 of 2690)
No single metric tells the full story. See the HKSE:08635 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Elephant Holdings Group Ltd is a Hong Kong-based financial trading solution provider, principally engaged in the development and provision of financial trading solutions, as well as the development and supply of resource allocation, planning, scheduling, and management software and services. The company mainly provides comprehensive and integrated financial trading solutions that enable the trading of OTC-traded financial instruments, stock exchange-traded financial instruments, and fund management to brokerage firms and wealth management companies. The Group has two reportable operating segments: Financial trading solutions and other IT services, and Bullion trading services, and the majority of its revenue is generated from the Financial trading solutions and other IT services segment.
58GF Score
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