ALD (Altech Digital Co) Gross Margin %: 40.56% (As of Mar. 2025)

What is Altech Digital Co Gross Margin %?

Altech Digital Co ALD Gross Margin % is 40.56% as of Mar. 2025.

Gross Margin % is calculated as gross profit divided by its revenue. Altech Digital Co's Gross Profit for the six months ended in Mar. 2025 was $1.42 Mil. Altech Digital Co's Revenue for the six months ended in Mar. 2025 was $3.49 Mil. Therefore, Altech Digital Co's Gross Margin % for the quarter that ended in Mar. 2025 was 40.56%.

The historical rank and industry rank for Altech Digital Co's Gross Margin % or its related term are showing as below:

ALD's Gross Margin % is not ranked ^*
in the Software industry.
Industry Median: 40.45
* Ranked among companies with meaningful Gross Margin % only.

Altech Digital Co had a gross margin of 40.56% for the quarter that ended in Mar. 2025 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Altech Digital Co was 0.00% per year.

Altech Digital Co (NAS:ALD) 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

Altech Digital Co had a gross margin of 40.56% for the quarter that ended in Mar. 2025 => Durable 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.

Altech Digital Co Gross Margin % Related Terms

Altech Digital Co Gross Margin % Historical Data

* Premium members only.

The historical data trend for Altech Digital Co'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.

Altech Digital Co Gross Margin % Chart

Altech Digital Co Annual Data

Trend

Mar24

Mar25

Gross Margin %

46.43

40.56

Altech Digital Co Semi-Annual Data
	Mar24	Mar25
Gross Margin %	46.43	40.56

ALD vs : Gross Margin % Comparison

For the Information Technology Services subindustry, Altech Digital Co'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.

Altech Digital Co Gross Margin % vs Software Industry

For the Software industry and Technology sector, Altech Digital Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Altech Digital Co's Gross Margin % falls into.

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Altech Digital Co Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Altech Digital Co's Gross Margin for the fiscal year that ended in Mar. 2025 is calculated as

Gross Margin % (A: Mar. 2025 )	=	Gross Profit (A: Mar. 2025 )	/	Revenue (A: Mar. 2025 )
	=	1.4	/	3.491
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(3.491 - 2.075)	/	3.491
	=	40.56 %

Altech Digital Co's Gross Margin for the quarter that ended in Mar. 2025 is calculated as

Gross Margin % (Q: Mar. 2025 )	=	Gross Profit (Q: Mar. 2025 )	/	Revenue (Q: Mar. 2025 )
	=	1.4	/	3.491
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(3.491 - 2.075)	/	3.491
	=	40.56 %

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.

Frequently Asked Questions Learn more about Gross Margin % →

What does a Gross Margin % of 40.56% mean?

Altech Digital Co (ALD) has a Gross Margin % of 40.56% as of Mar. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Altech Digital Co and its competitors.

Is Altech Digital Co's Gross Margin % too high?

Altech Digital Co's current Gross Margin % is 40.56%. The Software industry median Gross Margin % is 40.45. Altech Digital Co's value of 40.56% is 0.3% above this industry median.

How does Altech Digital Co's Gross Margin % compare to ?

Altech Digital Co's Gross Margin % of 40.56% can be compared against companies in the Software industry. The industry median Gross Margin % is 40.45. Altech Digital Co's value of 40.56% is 0.3% above this benchmark. 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 2,683 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. Altech Digital Co's current Gross Margin % of 40.56% is 0.3% above 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 Altech Digital Co 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. Altech Digital Co's current Gross Margin % is 40.56%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Altech Digital Co stock overvalued right now?

Altech Digital Co (ALD) has a current Gross Margin % of 40.56%. The current Gross Margin % is 40.56% and 0.3% above the Software industry median of 40.45. 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 Altech Digital Co (ALD), the current Gross Margin % is 40.56% as of Mar. 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.

Altech Digital Co Business Description

Industry Technology Software

Comparable Companies

Address 100 Cyberport Road, Units 608-61, Level 6, Core C, Cyberport 3, Pok Fu Lam, Hong Kong, HKG

Website https://www.altech.hk

Altech Digital Co Ltd is an IT solutions service provider and it operates its business in Hong Kong through its indirect wholly-owned Operating Subsidiary. The company focuses on providing comprehensive and inventive solutions designed to optimize business performance of its customers, meet various industry-specific operational challenges and create new business opportunities for them. It offers services to customers from a variety of industries including multinational financial services, property development and business solutions services. Its IT solutions services can be categorized into (i) system development services; and (ii) system maintenance and consultancy services.