Lesaka Technologies Inc gross margin has been in long-term decline. The average rate of decline per year is -10.6%.
The historical rank and industry rank for Lesaka Technologies's Gross Margin % or its related term are showing as below:
LSAK'
s Gross Margin % Range Over the Past 10 Years
Min: 20.92 Med: 38.05 Max: 55.26
Current: 21.41
During the past 13 years, the highestGross Margin % of Lesaka Technologies was 55.26%. The lowest was 20.92%. And the median was 38.05%.
LSAK's Gross Margin % is ranked worse than 79.7% of 2631
companies
in the Software industry
Industry Median: 41.74
vs LSAK: 21.41
Lesaka Technologies had a gross margin of 20.59% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Lesaka Technologies was -10.60% per year.
Lesaka Technologies Gross Margin % Historical Data
The historical data trend for Lesaka Technologies'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.
Competitive Comparison of Lesaka Technologies's Gross Margin %
For the Software - Infrastructure subindustry, Lesaka Technologies'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.
Lesaka Technologies's Gross Margin % Distribution in the Software Industry
For the Software industry and Technology sector, Lesaka Technologies's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Lesaka Technologies'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.
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
Lesaka Technologies had a gross margin of 20.59% for the quarter that ended in Dec. 2023 => 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.
Lesaka Technologies Gross Margin % Related Terms
Thank you for viewing the detailed overview of Lesaka Technologies's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Lesaka Technologies (Lesaka Technologies) Business Description
Lesaka Technologies Inc provides payment solutions, transaction processing solutions, and financial technologies. The company operates two reportable segments: Merchant and Consumer. The company operates mainly within South Africa. The Merchant segment that derives majority revenue includes activities related to the provision of goods and services provided to corporate and other juristic entities. It earns fees from processing activities performed for its customers and revenue generated from the distribution of prepaid airtime. The Consumer segment includes activities related to the provision of financial services to customers, including bank accounts, loans, and insurance products. The firm charges monthly administration fees for all bank accounts.
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