SRA HoldingsTSE:3817 +0.11%87 Gross Margin % is 27.01% as of Mar. 2026, which is 11% above its 10-year median of 24.43. GuruFocus rates TSE:3817 with a GF Score™ of 87/100 and a GF Value™ of 円4,715.62 (Fairly Valued). Among 2,681 Software companies, SRA Holdings ranks worse than 69.45% on this metric.
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
SRA Holdings had a gross margin of 27.01% 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.
SRA Holdings Gross Margin % Related Terms
SRA Holdings Gross Margin % Historical Data
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The historical data trend for SRA 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.
TSE:3817 vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, SRA 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.
SRA Holdings Gross Margin % vs Software Industry
For the Software industry and Technology sector, SRA Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where SRA 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.
SRA Holdings (TSE:3817) has a Gross Margin % of 27.01% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on SRA Holdings and its competitors. This is 11% above median its historical median of 24.43. Over the past decade, SRA Holdings' Gross Margin % has ranged from 20.98 to 25.79. According to the industry distribution chart, SRA Holdings ranks #1862 out of 2681 companies in the Software industry, placing it in the top 69.5%.
Is SRA Holdings' Gross Margin % too high?
SRA Holdings' current Gross Margin % of 27.01% is 11% above median its 10-year median of 24.43. Over the past 10 years, this metric has ranged from a low of 20.98 to a high of 25.79. The Software industry median Gross Margin % is 40.41. SRA Holdings' value of 27.01% is 33.2% below this industry median. Based on the distribution chart, SRA Holdings ranks #1862 out of 2681 companies in the Software industry, which is below the industry midpoint. Overall, SRA Holdings has a GF Score™ of 87/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does SRA Holdings' Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, SRA Holdings ranks #1862 out of 2681 companies for Gross Margin %. This places SRA Holdings in the lower half of its industry. The industry median Gross Margin % is 40.41. SRA Holdings' value of 27.01% is 33.2% below this benchmark. Historically, SRA Holdings' own Gross Margin % has ranged from 20.98 to 25.79 over the past decade. While the company's 10-year median is 24.43 vs. the industry median of 40.41, SRA 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 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. SRA Holdings's current Gross Margin % of 27.01% is 33.2% 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 SRA Holdings 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. SRA Holdings's current Gross Margin % is 27.01%, which is 11% above median its own 10-year median of 24.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SRA Holdings stock overvalued right now?
Based on GuruFocus' analysis, SRA Holdings (TSE:3817) is currently considered Fairly Valued. The stock's GF Value™ is 円4,715.62, compared to a current price of 円4,550.00 — trading 3.5% below its estimated fair value. The current Gross Margin % is 27.01%, which is 11% above median its 10-year median of 24.43 and 33.2% below the Software industry median of 40.41. SRA Holdings' overall GF Score™ is 87/100. 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 SRA Holdings (TSE:3817), the current Gross Margin % is 27.01% 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 SRA Holdings (TSE:3817) Overvalued in 2026?
Based on GuruFocus' analysis, SRA Holdings stock appears to be undervalued.
The current stock price of 円4,550.00 is trading 3.5% below its estimated GF Value™ of 円4,715.62.
GuruFocus considers SRA Holdings to be Fairly Valued.
Key valuation signals for TSE:3817:
Gross Margin %: 27.01% (11% above median its 10-year median of 24.43)
GF Value™: 円4,715.62 vs. price of 円4,550.00 (3.5% below fair value)
Industry Position: 33.2% below the Software median (#1862 of 2681)
No single metric tells the full story. See the TSE:3817 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SRA Holdings Inc is an information technology services provider. The company operates through three business areas: systems development, operation/administration services and product solutions marketing. The systems development includes financial IT services, embedded IT services, academic IT services, business systems development and infrastructure development. The operation/administration services include outsourcing services, infrastructure operation services and system operation services. The product solutions marketing includes cloud security, open source software, and development support. The company has an operational presence across Europe, India, China, and Singapore.
87GF Score
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