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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
AraxiJSE:AXX +3.45%82 Gross Margin % is 42.24% as of Mar. 2026, which is 14% below its 10-year median of 49.11. GuruFocus rates JSE:AXX with a GF Score™ of 82/100 and a GF Value™ of R1.69 (Fairly Valued). The stock has 6 warning signs investors should review. Among 552 Asset Management companies, Araxi ranks worse than 61.96% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Araxi's Gross Profit for the
six
months ended in Mar. 2026 was R217 Mil. Araxi's Revenue for the
six
months ended in Mar. 2026 was R513 Mil. Therefore, Araxi's Gross Margin % for the quarter that ended in Mar. 2026 was 42.24%.
Warning Sign:
Araxi Ltd gross margin has been in long-term decline. The average rate of decline per year is -2.1%.
The historical rank and industry rank for Araxi's Gross Margin % or its related term are showing as below:
JSE:AXX'
s Gross Margin % Range Over the Past 10 Years
Min: 45.1 Med: 49.11 Max: 51.61
Current: 45.1
During the past 11 years, the highestGross Margin % of Araxi was 51.61%. The lowest was 45.10%. And the median was 49.11%.
JSE:AXX's Gross Margin % is ranked worse than 61.96% of 552
companies
in the Asset Management industry
Industry Median: 56.735
vs JSE:AXX: 45.10
Araxi had a gross margin of 42.24% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Araxi was -2.10% per year.
Araxi (JSE:AXX) 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
Araxi had a gross margin of 42.24% for the quarter that ended in Mar. 2026 => 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.
Araxi Gross Margin % Related Terms
Araxi Gross Margin % Historical Data
* Premium members only.
The historical data trend for Araxi'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.
JSE:AXX vs BLK, BX, KKR: Gross Margin % Comparison
For the Asset Management subindustry, Araxi'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.
Araxi Gross Margin % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Araxi's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Araxi'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.
Araxi (JSE:AXX) has a Gross Margin % of 42.24% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Araxi and its competitors. This is 14% below median its historical median of 49.11. Over the past decade, Araxi's Gross Margin % has ranged from 45.10 to 51.61. According to the industry distribution chart, Araxi ranks #342 out of 552 companies in the Asset Management industry, placing it in the top 62%.
Is Araxi's Gross Margin % too high?
Araxi's current Gross Margin % of 42.24% is 14% below median its 10-year median of 49.11. Over the past 10 years, this metric has ranged from a low of 45.10 to a high of 51.61. The Asset Management industry median Gross Margin % is 56.74. Araxi's value of 42.24% is 25.5% below this industry median. Based on the distribution chart, Araxi ranks #342 out of 552 companies in the Asset Management industry, which is below the industry midpoint. Overall, Araxi has a GF Score™ of 82/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Araxi's Gross Margin % compare to BLK and BX?
According to the Asset Management industry distribution chart, Araxi ranks #342 out of 552 companies for Gross Margin %. This places Araxi in the lower half of its industry. The industry median Gross Margin % is 56.74. Araxi's value of 42.24% is 25.5% below this benchmark. Historically, Araxi's own Gross Margin % has ranged from 45.10 to 51.61 over the past decade. While the company's 10-year median is 49.11 vs. the industry median of 56.74, Araxi 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 an Asset Management company?
The median Gross Margin % among Asset Management companies is 56.74, based on 552 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. Araxi's current Gross Margin % of 42.24% is 25.5% 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 Araxi and its competitors. For the Asset Management industry, the median Gross Margin % is 56.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Araxi's current Gross Margin % is 42.24%, which is 14% below median its own 10-year median of 49.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Araxi stock overvalued right now?
Based on GuruFocus' analysis, Araxi (JSE:AXX) is currently considered Fairly Valued. The stock's GF Value™ is R1.69, compared to a current price of R1.80 — trading 6.5% above its estimated fair value. The current Gross Margin % is 42.24%, which is 14% below median its 10-year median of 49.11 and 25.5% below the Asset Management industry median of 56.74. Araxi's overall GF Score™ is 82/100 with 6 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 Araxi (JSE:AXX), the current Gross Margin % is 42.24% 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 Araxi (JSE:AXX) Overvalued in 2026?
Based on GuruFocus' analysis, Araxi stock appears to be overvalued.
The current stock price of R1.80 is trading 6.5% above its estimated GF Value™ of R1.69.
GuruFocus considers Araxi to be Fairly Valued.
Key valuation signals for JSE:AXX:
Gross Margin %: 42.24% (14% below median its 10-year median of 49.11)
GF Value™: R1.69 vs. price of R1.80 (6.5% above fair value)
Industry Position: 25.5% below the Asset Management median (#342 of 552)
No single metric tells the full story. See the JSE:AXX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Araxi Ltd, Formerly Capital Appreciation Ltd is a South Africa based is a holding company with investments in businesses which operating in the Fintech and Financial Services Sector. The company operates in three segments: Payments and Payment Infrastructure and Services (Payments); Software and Services (Software); and International segment..
82GF Score
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