EndavaMEX:DAVA N 65 Gross Margin % is 18.60% as of Mar. 2026, which is 44% below its 10-year median of 33.20. GuruFocus rates MEX:DAVA N with a GF Score™ of 65/100 and a GF Value™ of MXN485.22 (Possible Value Trap). The stock has 9 warning signs investors should review. Among 2,681 Software companies, Endava ranks worse than 77.66% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Endava's Gross Profit for the
three
months ended in Mar. 2026 was MXN798 Mil. Endava's Revenue for the
three
months ended in Mar. 2026 was MXN4,293 Mil. Therefore, Endava's Gross Margin % for the quarter that ended in Mar. 2026 was 18.60%.
Warning Sign:
Endava PLC gross margin has been in long-term decline. The average rate of decline per year is -4.8%.
The historical rank and industry rank for Endava's Gross Margin % or its related term are showing as below:
MEX:DAVA N'
s Gross Margin % Range Over the Past 10 Years
Min: 21.31 Med: 33.2 Max: 34.99
Current: 21.31
During the past 10 years, the highestGross Margin % of Endava was 34.99%. The lowest was 21.31%. And the median was 33.20%.
MEX:DAVA N's Gross Margin % is ranked worse than 77.66% of 2681
companies
in the Software industry
Industry Median: 40.41
vs MEX:DAVA N: 21.31
Endava had a gross margin of 18.60% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Endava was -4.80% per year.
Endava (MEX:DAVA N) 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
Endava had a gross margin of 18.60% for the quarter that ended in Mar. 2026 => 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.
Endava Gross Margin % Related Terms
Endava Gross Margin % Historical Data
* Premium members only.
The historical data trend for Endava'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.
MEX:DAVA N vs TCX, AMBR, EXOD: Gross Margin % Comparison
For the Software - Infrastructure subindustry, Endava'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.
Endava Gross Margin % vs Software Industry
For the Software industry and Technology sector, Endava's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Endava'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.
Endava (MEX:DAVA N) has a Gross Margin % of 18.60% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Endava and its competitors. This is 44% below median its historical median of 33.20. Over the past decade, Endava's Gross Margin % has ranged from 21.31 to 34.99. According to the industry distribution chart, Endava ranks #2082 out of 2681 companies in the Software industry, placing it in the top 77.7%.
Is Endava's Gross Margin % too high?
Endava's current Gross Margin % of 18.60% is 44% below median its 10-year median of 33.20. Over the past 10 years, this metric has ranged from a low of 21.31 to a high of 34.99. The Software industry median Gross Margin % is 40.41. Endava's value of 18.60% is 54% below this industry median. Based on the distribution chart, Endava ranks #2082 out of 2681 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Endava has a GF Score™ of 65/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Endava's Gross Margin % compare to TCX and AMBR?
According to the Software industry distribution chart, Endava ranks #2082 out of 2681 companies for Gross Margin %. This places Endava in the lower half of its industry. The industry median Gross Margin % is 40.41. Endava's value of 18.60% is 54% below this benchmark. Historically, Endava's own Gross Margin % has ranged from 21.31 to 34.99 over the past decade. While the company's 10-year median is 33.20 vs. the industry median of 40.41, Endava 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 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. Endava's current Gross Margin % of 18.60% is 54% 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 Endava 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. Endava's current Gross Margin % is 18.60%, which is 44% below median its own 10-year median of 33.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Endava stock overvalued right now?
Based on GuruFocus' analysis, Endava (MEX:DAVA N) is currently considered Possible Value Trap. The stock's GF Value™ is MXN485.22, compared to a current price of MXN47.16 — trading 90.3% below its estimated fair value. The current Gross Margin % is 18.60%, which is 44% below median its 10-year median of 33.20 and 54% below the Software industry median of 40.41. Endava's overall GF Score™ is 65/100 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 Endava (MEX:DAVA N), the current Gross Margin % is 18.60% 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 Endava (MEX:DAVA N) Overvalued in 2026?
Based on GuruFocus' analysis, Endava stock appears to be undervalued.
The current stock price of MXN47.16 is trading 90.3% below its estimated GF Value™ of MXN485.22.
GuruFocus considers Endava to be Possible Value Trap.
Key valuation signals for MEX:DAVA N:
Gross Margin %: 18.60% (44% below median its 10-year median of 33.20)
GF Value™: MXN485.22 vs. price of MXN47.16 (90.3% below fair value)
Industry Position: 54% below the Software median (#2082 of 2681)
No single metric tells the full story. See the MEX:DAVA N stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Endava is a next-generation IT services company that primarily assists clients with their digital transformation efforts by creating customized software for them. The company was founded in 2006 in the UK, and it continues to generate the majority of revenue in the UK and Europe. Endava's client base is concentrated in the payments and financial services, technology, media, and telecom industries.
65GF Score
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