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Elad Software SystemsXTAE:ELAD -2.50%14 Gross Margin % is 18.23% as of Dec. 2025, which is 12% above its 10-year median of 16.24. GuruFocus rates XTAE:ELAD with a GF Score™ of 14/100. Among 2,690 Software companies, Elad Software Systems ranks worse than 84.61% on this metric.
Elad Software Systems (XTAE:ELAD) 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
Elad Software Systems had a gross margin of 18.23% for the quarter that ended in Dec. 2025 => 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.
Elad Software Systems Gross Margin % Related Terms
Elad Software Systems Gross Margin % Historical Data
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The historical data trend for Elad Software Systems'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.
Elad Software Systems Gross Margin % Chart
Elad Software Systems Annual Data
Trend
Dec24
Dec25
Gross Margin %
16.34
16.13
Elad Software Systems Semi-Annual Data
Jun24
Dec24
Jun25
Dec25
Gross Margin %
13.23
19.23
13.94
18.23
XTAE:ELAD vs QH, SHOP, UBER: Gross Margin % Comparison
For the Software - Application subindustry, Elad Software Systems'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.
Elad Software Systems Gross Margin % vs Software Industry
For the Software industry and Technology sector, Elad Software Systems's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Elad Software Systems'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.
Elad Software Systems (XTAE:ELAD) has a Gross Margin % of 18.23% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Elad Software Systems and its competitors. This is 12% above median its historical median of 16.24. Over the past decade, Elad Software Systems' Gross Margin % has ranged from 16.13 to 16.34. According to the industry distribution chart, Elad Software Systems ranks #2276 out of 2690 companies in the Software industry, placing it in the top 84.6%.
Is Elad Software Systems' Gross Margin % too high?
Elad Software Systems' current Gross Margin % of 18.23% is 12% above median its 10-year median of 16.24. Over the past 10 years, this metric has ranged from a low of 16.13 to a high of 16.34. The Software industry median Gross Margin % is 40.50. Elad Software Systems' value of 18.23% is 55% below this industry median. Based on the distribution chart, Elad Software Systems ranks #2276 out of 2690 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Elad Software Systems has a GF Score™ of 14/100, reflecting its overall financial health beyond just this single metric.
How does Elad Software Systems' Gross Margin % compare to QH and SHOP?
According to the Software industry distribution chart, Elad Software Systems ranks #2276 out of 2690 companies for Gross Margin %. This places Elad Software Systems in the lower half of its industry. The industry median Gross Margin % is 40.50. Elad Software Systems' value of 18.23% is 55% below this benchmark. Historically, Elad Software Systems' own Gross Margin % has ranged from 16.13 to 16.34 over the past decade. While the company's 10-year median is 16.24 vs. the industry median of 40.50, Elad Software Systems 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 40.50, 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. Elad Software Systems's current Gross Margin % of 18.23% is 55% 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 Elad Software Systems and its competitors. For the Software industry, the median Gross Margin % is 40.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Elad Software Systems's current Gross Margin % is 18.23%, which is 12% above median its own 10-year median of 16.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Elad Software Systems stock overvalued right now?
Elad Software Systems (XTAE:ELAD) has a current Gross Margin % of 18.23%. The current Gross Margin % is 18.23%, which is 12% above median its 10-year median of 16.24 and 55% below the Software industry median of 40.50. Elad Software Systems' overall GF Score™ is 14/100. 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 Elad Software Systems (XTAE:ELAD), the current Gross Margin % is 18.23% as of Dec. 2025. 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.
Elad Software Systems specializes in managing and executing end-to-end projects and offers business solutions for strengthening communication with clients through three different channels: Data, CRM, and Digital. Its Data helps managers overcome complex business challenges by implementing data-based management and control tools using various technologies. Its CRM has long-term relationships with its clients and is a partner in the three multinational platforms: Salesforce, Dynamic 365, and Pega, as well as in the automation and integration company. Elad Digital is Israel's customer engagement company, helping businesses achieve its business needs and strengthen relationships with its clients by offering a range of end-to-end solutions.
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