ISA HoldingsJSE:ISA +4.48%88 Gross Margin % is 58.03% as of Feb. 2026, which is 21% above its 10-year median of 48.10. GuruFocus rates JSE:ISA with a GF Score™ of 88/100 and a GF Value™ of R2.23 (Fairly Valued). The stock has 3 warning signs investors should review. Among 2,680 Software companies, ISA Holdings ranks better than 61.27% on this metric.
ISA Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -3%.
The historical rank and industry rank for ISA Holdings's Gross Margin % or its related term are showing as below:
JSE:ISA'
s Gross Margin % Range Over the Past 10 Years
Min: 43.38 Med: 48.1 Max: 57.2
Current: 50.17
During the past 13 years, the highestGross Margin % of ISA Holdings was 57.20%. The lowest was 43.38%. And the median was 48.10%.
JSE:ISA's Gross Margin % is ranked better than 61.27% of 2680
companies
in the Software industry
Industry Median: 40.445
vs JSE:ISA: 50.17
ISA Holdings had a gross margin of 58.03% for the quarter that ended in Feb. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for ISA Holdings was -3.00% per year.
ISA Holdings (JSE:ISA) 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
ISA Holdings had a gross margin of 58.03% for the quarter that ended in Feb. 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.
ISA Holdings Gross Margin % Related Terms
ISA Holdings Gross Margin % Historical Data
* Premium members only.
The historical data trend for ISA 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.
JSE:ISA vs MSFT, ORCL, PLTR: Gross Margin % Comparison
For the Software - Infrastructure subindustry, ISA 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.
ISA Holdings Gross Margin % vs Software Industry
For the Software industry and Technology sector, ISA Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where ISA 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.
ISA Holdings (JSE:ISA) has a Gross Margin % of 58.03% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on ISA Holdings and its competitors. This is 21% above median its historical median of 48.10. Over the past decade, ISA Holdings' Gross Margin % has ranged from 43.38 to 57.20. According to the industry distribution chart, ISA Holdings ranks #1038 out of 2680 companies in the Software industry, placing it in the top 38.7%.
Is ISA Holdings' Gross Margin % too high?
ISA Holdings' current Gross Margin % of 58.03% is 21% above median its 10-year median of 48.10. Over the past 10 years, this metric has ranged from a low of 43.38 to a high of 57.20. The Software industry median Gross Margin % is 40.45. ISA Holdings' value of 58.03% is 43.5% above this industry median. Based on the distribution chart, ISA Holdings ranks #1038 out of 2680 companies in the Software industry, which is above the industry midpoint. Overall, ISA Holdings has a GF Score™ of 88/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does ISA Holdings' Gross Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, ISA Holdings ranks #1038 out of 2680 companies for Gross Margin %. This puts ISA Holdings in the upper half of its industry. The industry median Gross Margin % is 40.45. ISA Holdings' value of 58.03% is 43.5% above this benchmark. Historically, ISA Holdings' own Gross Margin % has ranged from 43.38 to 57.20 over the past decade. While the company's 10-year median is 48.10 vs. the industry median of 40.45, ISA Holdings has consistently been above 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 40.45, based on 2,680 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. ISA Holdings's current Gross Margin % of 58.03% is 43.5% above 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 ISA Holdings and its competitors. For the Software industry, the median Gross Margin % is 40.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ISA Holdings's current Gross Margin % is 58.03%, which is 21% above median its own 10-year median of 48.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ISA Holdings stock overvalued right now?
Based on GuruFocus' analysis, ISA Holdings (JSE:ISA) is currently considered Fairly Valued. The stock's GF Value™ is R2.23, compared to a current price of R2.10 — trading 5.8% below its estimated fair value. The current Gross Margin % is 58.03%, which is 21% above median its 10-year median of 48.10 and 43.5% above the Software industry median of 40.45. ISA Holdings' overall GF Score™ is 88/100 with 3 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 ISA Holdings (JSE:ISA), the current Gross Margin % is 58.03% as of Feb. 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 ISA Holdings (JSE:ISA) Overvalued in 2026?
Based on GuruFocus' analysis, ISA Holdings stock appears to be undervalued.
The current stock price of R2.10 is trading 5.8% below its estimated GF Value™ of R2.23.
GuruFocus considers ISA Holdings to be Fairly Valued.
Key valuation signals for JSE:ISA:
Gross Margin %: 58.03% (21% above median its 10-year median of 48.10)
GF Value™: R2.23 vs. price of R2.10 (5.8% below fair value)
Industry Position: 43.5% above the Software median (#1038 of 2680)
No single metric tells the full story. See the JSE:ISA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ISA Holdings Ltd is an investment holding company. The company, through its subsidiary, provides network, Internet, and information security solutions to the sub-Saharan African market. Its business is to discover, design, deliver, deploy, and manage its bespoke Information and Communication Technology (ICT) security infrastructure. Its technology offerings include firewalls, anti-virus, authentication, remote access, content security, intrusion protection, virtual private networking, vulnerability assessment, messaging and data protection, and identity and access management. The company generates a majority of its revenue from its business in South Africa.
88GF Score
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