OCTV (Octave Intelligence) Gross Margin %: 73.00% (As of Dec. 2024) — Near Median

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OCTV Octave Intelligence PLC OCTV
19 GF Score
Price $16.32
! 1 Warning Sign
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What is Octave Intelligence Gross Margin %?

Octave Intelligence OCTV +5.29% 19 Gross Margin % is 73.00% as of Dec. 2024, which is 3% above its 10-year median of 70.80. GuruFocus rates OCTV with a GF Score™ of 19/100. The stock has 1 warning sign investors should review. Among 2,690 Software companies, Octave Intelligence ranks better than 82.75% on this metric.

Gross Margin % is calculated as gross profit divided by its revenue. Octave Intelligence's Gross Profit for the six months ended in Dec. 2024 was $1,171 Mil. Octave Intelligence's Revenue for the six months ended in Dec. 2024 was $1,604 Mil. Therefore, Octave Intelligence's Gross Margin % for the quarter that ended in Dec. 2024 was 73.00%.


The historical rank and industry rank for Octave Intelligence's Gross Margin % or its related term are showing as below:

OCTV' s Gross Margin % Range Over the Past 10 Years
Min: 69.2   Med: 70.8   Max: 73
Current: 73


During the past 3 years, the highest Gross Margin % of Octave Intelligence was 73.00%. The lowest was 69.20%. And the median was 70.80%.

OCTV's Gross Margin % is ranked better than
82.75% of 2690 companies
in the Software industry
Industry Median: 40.54 vs OCTV: 73.00

Octave Intelligence had a gross margin of 73.00% for the quarter that ended in Dec. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Octave Intelligence was 0.00% per year.


Octave Intelligence  (NAS:OCTV) 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

Octave Intelligence had a gross margin of 73.00% for the quarter that ended in Dec. 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.


Octave Intelligence Gross Margin % Related Terms


Octave Intelligence Gross Margin % Historical Data

* Premium members only.

The historical data trend for Octave Intelligence'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.

Octave Intelligence Gross Margin % Chart

Octave Intelligence Annual Data
Trend Dec22 Dec23 Dec24
Gross Margin %
69.20 70.80 73.00

Octave Intelligence Semi-Annual Data
Dec22 Dec23 Dec24
Gross Margin % 69.20 70.80 73.00

OCTV vs SRAD, DAVE, LIF: Gross Margin % Comparison

For the Software - Application subindustry, Octave Intelligence'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.


Octave Intelligence Gross Margin % vs Software Industry

For the Software industry and Technology sector, Octave Intelligence's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Octave Intelligence's Gross Margin % falls into.


OCTV
19GF Score
Octave Intelligence PLC OCTV
Gross Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Octave Intelligence Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Octave Intelligence's Gross Margin for the fiscal year that ended in Dec. 2024 is calculated as

Gross Margin % (A: Dec. 2024 )=Gross Profit (A: Dec. 2024 ) / Revenue (A: Dec. 2024 )
=1171 / 1604.171
=(Revenue - Cost of Goods Sold) / Revenue
=(1604.171 - 433.18) / 1604.171
=73.00 %

Octave Intelligence's Gross Margin for the quarter that ended in Dec. 2024 is calculated as


Gross Margin % (Q: Dec. 2024 )=Gross Profit (Q: Dec. 2024 ) / Revenue (Q: Dec. 2024 )
=1171 / 1604.171
=(Revenue - Cost of Goods Sold) / Revenue
=(1604.171 - 433.18) / 1604.171
=73.00 %

* 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.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 73.00% mean?
Octave Intelligence (OCTV) has a Gross Margin % of 73.00% as of Dec. 2024. Gross margin is the ratio of total gross profit to net sales. View historical data on Octave Intelligence and its competitors. This is near median its historical median of 70.80. Over the past decade, Octave Intelligence's Gross Margin % has ranged from 69.20 to 73.00. According to the industry distribution chart, Octave Intelligence ranks #464 out of 2690 companies in the Software industry, placing it in the top 17.2%.
Is Octave Intelligence's Gross Margin % too high?
Octave Intelligence's current Gross Margin % of 73.00% is near median its 10-year median of 70.80. Over the past 10 years, this metric has ranged from a low of 69.20 to a high of 73.00. The Software industry median Gross Margin % is 40.54. Octave Intelligence's value of 73.00% is 80.1% above this industry median. Based on the distribution chart, Octave Intelligence ranks #464 out of 2690 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Octave Intelligence has a GF Score™ of 19/100, reflecting its overall financial health beyond just this single metric.
How does Octave Intelligence's Gross Margin % compare to SRAD and DAVE?
According to the Software industry distribution chart, Octave Intelligence ranks #464 out of 2690 companies for Gross Margin %. This places Octave Intelligence in the top 17% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.54. Octave Intelligence's value of 73.00% is 80.1% above this benchmark. Historically, Octave Intelligence's own Gross Margin % has ranged from 69.20 to 73.00 over the past decade. While the company's 10-year median is 70.80 vs. the industry median of 40.54, Octave Intelligence 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 40.54, based on 2,690 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. Octave Intelligence's current Gross Margin % of 73.00% is 80.1% 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 Octave Intelligence and its competitors. For the Software industry, the median Gross Margin % is 40.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Octave Intelligence's current Gross Margin % is 73.00%, which is near median its own 10-year median of 70.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Octave Intelligence stock overvalued right now?
Octave Intelligence (OCTV) has a current Gross Margin % of 73.00%. The current Gross Margin % is 73.00%, which is near median its 10-year median of 70.80 and 80.1% above the Software industry median of 40.54. Octave Intelligence's overall GF Score™ is 19/100 with 1 warning sign 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 Octave Intelligence (OCTV), the current Gross Margin % is 73.00% as of Dec. 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.

Octave Intelligence Business Description

Address 305 Intergraph Way, Madison, AL, USA, 35758
Octave Intelligence PLC provides a suite of software solutions that help organizations design, build, operate, and protect their physical assets, people, and critical infrastructure. The company operates in a single business segment developing enterprise software used in design, construction, operations, and security. Geographically, it operates in Americas that includes the United States, and Other Americas (Canada, and Latin America); EMIA that includes Europe, Middle East, India, and Africa; and APAC that includes the Asia-Pacific region, excluding India. The company derives maximum revenue from Americas. Its products include: Octave Coda Spatial, Octave Alto Twin, Octave Coda, Octave Oncall, Octave Alto, Octave Imagine, Octave Oncall Dispatch, Octave Alto Lightspeed, and Others.
19GF Score

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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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