Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
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.
The historical rank and industry rank for AYO Technology Solutions's Gross Margin % or its related term are showing as below:
JSE:AYO's Gross Margin % is not ranked *
in the Software industry.
Industry Median: 40.07 * Ranked among companies with meaningful Gross Margin % only.
AYO Technology Solutions had a gross margin of 16.45% for the quarter that ended in Feb. 2025 => No sustainable competitive advantage
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
AYO Technology Solutions had a gross margin of 16.45% for the quarter that ended in Feb. 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.
AYO Technology Solutions Gross Margin % Related Terms
AYO Technology Solutions 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.
JSE:AYO vs IBM, ACN, FI: Gross Margin % Comparison
For the Information Technology Services subindustry, AYO Technology Solutions'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.
AYO Technology Solutions Gross Margin % vs Software Industry
For the Software industry and Technology sector, AYO Technology Solutions's Gross Margin % distribution charts can be found below:
* The bar in red indicates where AYO Technology Solutions'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.
AYO Technology Solutions (JSE:AYO) has a Gross Margin % of 16.45% as of Feb. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on AYO Technology Solutions and its competitors.
Is AYO Technology Solutions' Gross Margin % too high?
AYO Technology Solutions' current Gross Margin % is 16.45%. The Software industry median Gross Margin % is 40.07. AYO Technology Solutions' value of 16.45% is 58.9% below this industry median. Overall, AYO Technology Solutions has a GF Score™ of 11/100, reflecting its overall financial health beyond just this single metric.
How does AYO Technology Solutions' Gross Margin % compare to IBM and ACN?
AYO Technology Solutions' Gross Margin % of 16.45% can be compared against companies in the Software industry. The industry median Gross Margin % is 40.07. AYO Technology Solutions' value of 16.45% is 58.9% below this benchmark. 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 40.07, based on 2,684 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. AYO Technology Solutions's current Gross Margin % of 16.45% is 58.9% 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 AYO Technology Solutions and its competitors. For the Software industry, the median Gross Margin % is 40.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AYO Technology Solutions's current Gross Margin % is 16.45%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AYO Technology Solutions stock overvalued right now?
AYO Technology Solutions (JSE:AYO) has a current Gross Margin % of 16.45%. The current Gross Margin % is 16.45% and 58.9% below the Software industry median of 40.07. AYO Technology Solutions' overall GF Score™ is 11/100. 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 AYO Technology Solutions (JSE:AYO), the current Gross Margin % is 16.45% as of Feb. 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.
AYO Technology Solutions Ltd is Broad-Based Black Economic Empowerment (B-BBEE) information and communications technology (ICT) investment holding company. The company through its subsidiaries provides solutions to both the public and private sectors within South Africa and overseas countries. It offers a diversified portfolio of services such as data analytics, systems integration, and business process management, software development, security, cloud solutions, and digital transformation. The company's operating segment includes Software and consulting; Security solutions; Unified communications; Health care service; Tracking solutions and Managed Services. It generates maximum revenue from the Managed services segment.
11GF Score
Get the complete analysis for JSE:AYO
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
JSE:AYO has been successfully added to your 
