Peax SolutionsXTAE:PEAX +2.96%63 Gross Margin % is 16.18% as of Mar. 2026, which is 2% above its 10-year median of 15.83. GuruFocus rates XTAE:PEAX with a GF Score™ of 63/100 and a GF Value™ of ₪9.47 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 2,678 Software companies, Peax Solutions ranks worse than 85.21% 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
Peax Solutions had a gross margin of 16.18% for the quarter that ended in Mar. 2026 => 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.
Peax Solutions Gross Margin % Related Terms
Peax Solutions Gross Margin % Historical Data
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The historical data trend for Peax Solutions'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.
XTAE:PEAX vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, Peax Solutions'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.
Peax Solutions Gross Margin % vs Software Industry
For the Software industry and Technology sector, Peax Solutions's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Peax Solutions'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.
Peax Solutions (XTAE:PEAX) has a Gross Margin % of 16.18% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Peax Solutions and its competitors. This is near median its historical median of 15.83. Over the past decade, Peax Solutions' Gross Margin % has ranged from 7.92 to 16.92. According to the industry distribution chart, Peax Solutions ranks #2282 out of 2678 companies in the Software industry, placing it in the top 85.2%.
Is Peax Solutions' Gross Margin % too high?
Peax Solutions' current Gross Margin % of 16.18% is near median its 10-year median of 15.83. Over the past 10 years, this metric has ranged from a low of 7.92 to a high of 16.92. The Software industry median Gross Margin % is 40.46. Peax Solutions' value of 16.18% is 60% below this industry median. Based on the distribution chart, Peax Solutions ranks #2282 out of 2678 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Peax Solutions has a GF Score™ of 63/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Peax Solutions' Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Peax Solutions ranks #2282 out of 2678 companies for Gross Margin %. This places Peax Solutions in the lower half of its industry. The industry median Gross Margin % is 40.46. Peax Solutions' value of 16.18% is 60% below this benchmark. Historically, Peax Solutions' own Gross Margin % has ranged from 7.92 to 16.92 over the past decade. While the company's 10-year median is 15.83 vs. the industry median of 40.46, Peax Solutions 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 40.46, based on 2,678 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. Peax Solutions's current Gross Margin % of 16.18% is 60% 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 Peax Solutions and its competitors. For the Software industry, the median Gross Margin % is 40.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Peax Solutions's current Gross Margin % is 16.18%, which is near median its own 10-year median of 15.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Peax Solutions stock overvalued right now?
Based on GuruFocus' analysis, Peax Solutions (XTAE:PEAX) is currently considered Significantly Undervalued. The stock's GF Value™ is ₪9.47, compared to a current price of ₪5.57 — trading 41.2% below its estimated fair value. The current Gross Margin % is 16.18%, which is near median its 10-year median of 15.83 and 60% below the Software industry median of 40.46. Peax Solutions' overall GF Score™ is 63/100 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 Peax Solutions (XTAE:PEAX), the current Gross Margin % is 16.18% 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 Peax Solutions (XTAE:PEAX) Overvalued in 2026?
Based on GuruFocus' analysis, Peax Solutions stock appears to be undervalued.
The current stock price of ₪5.57 is trading 41.2% below its estimated GF Value™ of ₪9.47.
GuruFocus considers Peax Solutions to be Significantly Undervalued.
Key valuation signals for XTAE:PEAX:
Gross Margin %: 16.18% (near median its 10-year median of 15.83)
GF Value™: ₪9.47 vs. price of ₪5.57 (41.2% below fair value)
Industry Position: 60% below the Software median (#2282 of 2678)
No single metric tells the full story. See the XTAE:PEAX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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