ePlusSTU:MLE -2.11%81 Gross Margin % is 24.58% as of Mar. 2026, which is 1% below its 10-year median of 24.83. GuruFocus rates STU:MLE with a GF Score™ of 81/100 and a GF Value™ of €75.31. The stock has 4 warning signs investors should review. Among 2,685 Software companies, ePlus ranks worse than 71.02% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. ePlus's Gross Profit for the
three
months ended in Mar. 2026 was €123 Mil. ePlus's Revenue for the
three
months ended in Mar. 2026 was €498 Mil. Therefore, ePlus's Gross Margin % for the quarter that ended in Mar. 2026 was 24.58%.
The historical rank and industry rank for ePlus's Gross Margin % or its related term are showing as below:
STU:MLE'
s Gross Margin % Range Over the Past 10 Years
Min: 22.51 Med: 24.83 Max: 25.6
Current: 25.06
During the past 13 years, the highestGross Margin % of ePlus was 25.60%. The lowest was 22.51%. And the median was 24.83%.
STU:MLE's Gross Margin % is ranked worse than 71.02% of 2685
companies
in the Software industry
Industry Median: 40.45
vs STU:MLE: 25.06
ePlus had a gross margin of 24.58% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for ePlus was 0.00% per year.
ePlus (STU:MLE) 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
ePlus had a gross margin of 24.58% for the quarter that ended in Mar. 2026 => Competition eroding margins
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.
ePlus Gross Margin % Related Terms
ePlus Gross Margin % Historical Data
* Premium members only.
The historical data trend for ePlus'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.
STU:MLE vs VERX, SPSC, GRND: Gross Margin % Comparison
For the Software - Application subindustry, ePlus'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.
ePlus Gross Margin % vs Software Industry
For the Software industry and Technology sector, ePlus's Gross Margin % distribution charts can be found below:
* The bar in red indicates where ePlus'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.
ePlus (STU:MLE) has a Gross Margin % of 24.58% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on ePlus and its competitors. This is near median its historical median of 24.83. Over the past decade, ePlus' Gross Margin % has ranged from 22.51 to 25.60. According to the industry distribution chart, ePlus ranks #1907 out of 2685 companies in the Software industry, placing it in the top 71%.
Is ePlus' Gross Margin % too high?
ePlus' current Gross Margin % of 24.58% is near median its 10-year median of 24.83. Over the past 10 years, this metric has ranged from a low of 22.51 to a high of 25.60. The Software industry median Gross Margin % is 40.45. ePlus' value of 24.58% is 39.2% below this industry median. Based on the distribution chart, ePlus ranks #1907 out of 2685 companies in the Software industry, which is below the industry midpoint. Overall, ePlus has a GF Score™ of 81/100, reflecting its overall financial health beyond just this single metric.
How does ePlus' Gross Margin % compare to VERX and SPSC?
According to the Software industry distribution chart, ePlus ranks #1907 out of 2685 companies for Gross Margin %. This places ePlus in the lower half of its industry. The industry median Gross Margin % is 40.45. ePlus' value of 24.58% is 39.2% below this benchmark. Historically, ePlus' own Gross Margin % has ranged from 22.51 to 25.60 over the past decade. While the company's 10-year median is 24.83 vs. the industry median of 40.45, ePlus 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 40.45, based on 2,685 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. ePlus's current Gross Margin % of 24.58% is 39.2% 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 ePlus and its competitors. For the Software industry, the median Gross Margin % is 40.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ePlus's current Gross Margin % is 24.58%, which is near median its own 10-year median of 24.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ePlus stock overvalued right now?
ePlus (STU:MLE) has a current Gross Margin % of 24.58%. The stock's GF Value™ is €75.31, compared to a current price of €69.50 — trading 7.7% below its estimated fair value. The current Gross Margin % is 24.58%, which is near median its 10-year median of 24.83 and 39.2% below the Software industry median of 40.45. ePlus' overall GF Score™ is 81/100 with 4 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 ePlus (STU:MLE), the current Gross Margin % is 24.58% 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 ePlus (STU:MLE) Overvalued in 2026?
Based on GuruFocus' analysis, ePlus stock appears to be undervalued.
The current stock price of €69.50 is trading 7.7% below its estimated GF Value™ of €75.31.
Key valuation signals for STU:MLE:
Gross Margin %: 24.58% (near median its 10-year median of 24.83)
GF Value™: €75.31 vs. price of €69.50 (7.7% below fair value)
Industry Position: 39.2% below the Software median (#1907 of 2685)
No single metric tells the full story. See the STU:MLE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ePlus Inc is a provider of technology solutions across the IT spectrum, spanning security, cloud, data center, networking, collaboration, AI, service provider, and critical infrastructure, and emerging solutions, to domestic and foreign organizations across all industry segments. Its solutions leverage a broad range of professional, consultative, and managed services across the technology spectrum. The company possesses top-level engineering certifications with a broad range of IT technologies that enable the company to offer multi-vendor IT solutions that are optimized for each of its customers' specific requirements. It also offers a wide portfolio of technology and other capital asset financing solutions to customers across commercial and government enterprises, designing programs.
81GF Score
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