The historical rank and industry rank for Sebata Holdings's Gross Margin % or its related term are showing as below:
JSE:SEB's Gross Margin % is not ranked *
in the Software industry.
Industry Median: 40.41 * Ranked among companies with meaningful Gross Margin % only.
Sebata Holdings had a gross margin of 55.29% for the quarter that ended in Sep. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Sebata Holdings was 0.00% per year.
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
Sebata Holdings had a gross margin of 55.29% for the quarter that ended in Sep. 2024 => 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.
Sebata Holdings Gross Margin % Related Terms
Sebata Holdings Gross Margin % Historical Data
* Premium members only.
The historical data trend for Sebata 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:SEB vs CRM, SHOP, UBER: Gross Margin % Comparison
For the Software - Application subindustry, Sebata 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.
Sebata Holdings Gross Margin % vs Software Industry
For the Software industry and Technology sector, Sebata Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sebata 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.
Sebata Holdings (JSE:SEB) has a Gross Margin % of 55.29% as of Sep. 2024. Gross margin is the ratio of total gross profit to net sales. View historical data on Sebata Holdings and its competitors.
Is Sebata Holdings' Gross Margin % too high?
Sebata Holdings' current Gross Margin % is 55.29%. The Software industry median Gross Margin % is 40.41. Sebata Holdings' value of 55.29% is 36.8% above this industry median. Overall, Sebata Holdings has a GF Score™ of 11/100, reflecting its overall financial health beyond just this single metric.
How does Sebata Holdings' Gross Margin % compare to CRM and SHOP?
Sebata Holdings' Gross Margin % of 55.29% can be compared against companies in the Software industry. The industry median Gross Margin % is 40.41. Sebata Holdings' value of 55.29% is 36.8% above 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 40.41, based on 2,681 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. Sebata Holdings's current Gross Margin % of 55.29% is 36.8% 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 Sebata Holdings and its competitors. For the Software industry, the median Gross Margin % is 40.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sebata Holdings's current Gross Margin % is 55.29%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sebata Holdings stock overvalued right now?
Sebata Holdings (JSE:SEB) has a current Gross Margin % of 55.29%. The current Gross Margin % is 55.29% and 36.8% above the Software industry median of 40.41. Sebata Holdings' 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 Sebata Holdings (JSE:SEB), the current Gross Margin % is 55.29% as of Sep. 2024. 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.
Sebata Holdings Ltd is a provider of integrated technology solutions and enterprise management solutions to municipalities, provincial government as well as public and private entities. It operates in two segments namely, Software Solutions and ICT Support Services. The majority of the revenue is generated from Software Solutions which is engaged in the development of bespoke software solutions.
11GF Score
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