ELM CoSAU:7203 -0.82%93 Gross Margin % is 42.45% as of Mar. 2026, which is 14% above its 10-year median of 37.35. GuruFocus rates SAU:7203 with a GF Score™ of 93/100 and a GF Value™ of ﷼1,448.96 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 2,676 Software companies, ELM Co ranks worse than 51.53% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. ELM Co's Gross Profit for the
three
months ended in Mar. 2026 was ﷼1,049 Mil. ELM Co's Revenue for the
three
months ended in Mar. 2026 was ﷼2,472 Mil. Therefore, ELM Co's Gross Margin % for the quarter that ended in Mar. 2026 was 42.45%.
The historical rank and industry rank for ELM Co's Gross Margin % or its related term are showing as below:
SAU:7203'
s Gross Margin % Range Over the Past 10 Years
Min: 32.41 Med: 37.35 Max: 40.94
Current: 39.3
During the past 10 years, the highestGross Margin % of ELM Co was 40.94%. The lowest was 32.41%. And the median was 37.35%.
SAU:7203's Gross Margin % is ranked worse than 51.53% of 2676
companies
in the Software industry
Industry Median: 40.475
vs SAU:7203: 39.30
ELM Co had a gross margin of 42.45% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for ELM Co was 3.30% per year.
ELM Co (SAU:7203) 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
ELM Co had a gross margin of 42.45% for the quarter that ended in Mar. 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.
ELM Co Gross Margin % Related Terms
ELM Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for ELM Co'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.
SAU:7203 vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, ELM Co'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.
ELM Co Gross Margin % vs Software Industry
For the Software industry and Technology sector, ELM Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where ELM Co'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.
ELM Co (SAU:7203) has a Gross Margin % of 42.45% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on ELM Co and its competitors. This is 14% above median its historical median of 37.35. Over the past decade, ELM Co's Gross Margin % has ranged from 32.41 to 40.94. According to the industry distribution chart, ELM Co ranks #1379 out of 2676 companies in the Software industry, placing it in the top 51.5%.
Is ELM Co's Gross Margin % too high?
ELM Co's current Gross Margin % of 42.45% is 14% above median its 10-year median of 37.35. Over the past 10 years, this metric has ranged from a low of 32.41 to a high of 40.94. The Software industry median Gross Margin % is 40.48. ELM Co's value of 42.45% is 4.9% above this industry median. Based on the distribution chart, ELM Co ranks #1379 out of 2676 companies in the Software industry, which is below the industry midpoint. Overall, ELM Co has a GF Score™ of 93/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does ELM Co's Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, ELM Co ranks #1379 out of 2676 companies for Gross Margin %. This places ELM Co in the lower half of its industry. The industry median Gross Margin % is 40.48. ELM Co's value of 42.45% is 4.9% above this benchmark. Historically, ELM Co's own Gross Margin % has ranged from 32.41 to 40.94 over the past decade. While the company's 10-year median is 37.35 vs. the industry median of 40.48, ELM Co 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 40.48, based on 2,676 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. ELM Co's current Gross Margin % of 42.45% is 4.9% 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 ELM Co and its competitors. For the Software industry, the median Gross Margin % is 40.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ELM Co's current Gross Margin % is 42.45%, which is 14% above median its own 10-year median of 37.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ELM Co stock overvalued right now?
Based on GuruFocus' analysis, ELM Co (SAU:7203) is currently considered Significantly Undervalued. The stock's GF Value™ is ﷼1,448.96, compared to a current price of ﷼663.50 — trading 54.2% below its estimated fair value. The current Gross Margin % is 42.45%, which is 14% above median its 10-year median of 37.35 and 4.9% above the Software industry median of 40.48. ELM Co's overall GF Score™ is 93/100 with 2 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 ELM Co (SAU:7203), the current Gross Margin % is 42.45% 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 ELM Co (SAU:7203) Overvalued in 2026?
Based on GuruFocus' analysis, ELM Co stock appears to be undervalued.
The current stock price of ﷼663.50 is trading 54.2% below its estimated GF Value™ of ﷼1,448.96.
GuruFocus considers ELM Co to be Significantly Undervalued.
Key valuation signals for SAU:7203:
Gross Margin %: 42.45% (14% above median its 10-year median of 37.35)
GF Value™: ﷼1,448.96 vs. price of ﷼663.50 (54.2% below fair value)
Industry Position: 4.9% above the Software median (#1379 of 2676)
No single metric tells the full story. See the SAU:7203 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ELM Co mainly offers ready-made and customized digital solutions across different areas. Its ready-made solutions serve a broad segment of customers, who can subscribe to different packages of their choosing to meet their needs and satisfy business requirements. The services offered by the group include consulting, digital products, technical solutions, and business outsourcing, among others. The group's reportable segments are: Digital business, Business process outsourcing, and Professional services. Maximum revenue is generated from the Digital business, which includes ready-to-use solutions in the form of technical services, portals, electronic applications, and related support work, developed by the group to solve an existing problem or fill an existing service gap for its clients.
93GF 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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