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South Ocean HoldingsJSE:SOH 45 Gross Margin % is 4.21% as of Dec. 2025, which is 21% below its 10-year median of 5.30. GuruFocus rates JSE:SOH with a GF Score™ of 45/100 and a GF Value™ of R1.55 (Possible Value Trap). The stock has 9 warning signs investors should review. Among 2,996 Industrial Products companies, South Ocean Holdings ranks worse than 96.16% on this metric.
South Ocean Holdings (JSE:SOH) 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
South Ocean Holdings had a gross margin of 4.21% for the quarter that ended in Dec. 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.
South Ocean Holdings Gross Margin % Related Terms
South Ocean Holdings Gross Margin % Historical Data
* Premium members only.
The historical data trend for South Ocean 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:SOH vs VRT, BE, HUBB: Gross Margin % Comparison
For the Electrical Equipment & Parts subindustry, South Ocean 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.
South Ocean Holdings Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, South Ocean Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where South Ocean 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.
South Ocean Holdings (JSE:SOH) has a Gross Margin % of 4.21% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on South Ocean Holdings and its competitors. This is 21% below median its historical median of 5.30. Over the past decade, South Ocean Holdings' Gross Margin % has ranged from 3.21 to 9.66. According to the industry distribution chart, South Ocean Holdings ranks #2881 out of 2996 companies in the Industrial Products industry, placing it in the top 96.2%.
Is South Ocean Holdings' Gross Margin % too high?
South Ocean Holdings' current Gross Margin % of 4.21% is 21% below median its 10-year median of 5.30. Over the past 10 years, this metric has ranged from a low of 3.21 to a high of 9.66. The Industrial Products industry median Gross Margin % is 26.79. South Ocean Holdings' value of 4.21% is 84.3% below this industry median. Based on the distribution chart, South Ocean Holdings ranks #2881 out of 2996 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, South Ocean Holdings has a GF Score™ of 45/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does South Ocean Holdings' Gross Margin % compare to VRT and BE?
According to the Industrial Products industry distribution chart, South Ocean Holdings ranks #2881 out of 2996 companies for Gross Margin %. This places South Ocean Holdings in the lower half of its industry. The industry median Gross Margin % is 26.79. South Ocean Holdings' value of 4.21% is 84.3% below this benchmark. Historically, South Ocean Holdings' own Gross Margin % has ranged from 3.21 to 9.66 over the past decade. While the company's 10-year median is 5.30 vs. the industry median of 26.79, South Ocean Holdings 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 Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.79, based on 2,996 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. South Ocean Holdings's current Gross Margin % of 4.21% is 84.3% 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 South Ocean Holdings and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. South Ocean Holdings's current Gross Margin % is 4.21%, which is 21% below median its own 10-year median of 5.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is South Ocean Holdings stock overvalued right now?
Based on GuruFocus' analysis, South Ocean Holdings (JSE:SOH) is currently considered Possible Value Trap. The stock's GF Value™ is R1.55, compared to a current price of R0.76 — trading 51% below its estimated fair value. The current Gross Margin % is 4.21%, which is 21% below median its 10-year median of 5.30 and 84.3% below the Industrial Products industry median of 26.79. South Ocean Holdings' overall GF Score™ is 45/100 with 9 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 South Ocean Holdings (JSE:SOH), the current Gross Margin % is 4.21% as of Dec. 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.
Is South Ocean Holdings (JSE:SOH) Overvalued in 2026?
Based on GuruFocus' analysis, South Ocean Holdings stock appears to be undervalued.
The current stock price of R0.76 is trading 51% below its estimated GF Value™ of R1.55.
GuruFocus considers South Ocean Holdings to be Possible Value Trap.
Key valuation signals for JSE:SOH:
Gross Margin %: 4.21% (21% below median its 10-year median of 5.30)
GF Value™: R1.55 vs. price of R0.76 (51% below fair value)
Industry Position: 84.3% below the Industrial Products median (#2881 of 2996)
No single metric tells the full story. See the JSE:SOH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
South Ocean Holdings Ltd is an investment holding company. The Company through its subsidiaries manufactures electrical wires, imports and distributes electrical accessories, general-purpose insulated wire, a range of flexible conductors, steel wire armored cables, flat-twin and earth cables, aluminum conductor steel reinforced (ACSR) cables, aerial bundle conductors (ABC) and surface wire investment company and light fittings assembly. The operating segments of the company include Electrical cable manufacturing; and Property investments. The company earns maximum revenue from Electrical cable manufacturing segment which consists manufacturing and distribution of electric wire. The group operates in South Africa.
45GF Score
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