ARB IOT GroupARBB +3.71%50 Gross Margin % is 1.24% as of Dec. 2025, which is 94% below its 10-year median of 20.39. GuruFocus rates ARBB with a GF Score™ of 50/100 and a GF Value™ of $43.47 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 2,685 Software companies, ARB IOT Group ranks worse than 96.72% on this metric.
The historical rank and industry rank for ARB IOT Group's Gross Margin % or its related term are showing as below:
ARBB'
s Gross Margin % Range Over the Past 10 Years
Min: -34.95 Med: 20.39 Max: 22.16
Current: -3.31
During the past 5 years, the highestGross Margin % of ARB IOT Group was 22.16%. The lowest was -34.95%. And the median was 20.39%.
ARBB's Gross Margin % is ranked worse than 96.72% of 2685
companies
in the Software industry
Industry Median: 40.45
vs ARBB: -3.31
ARB IOT Group had a gross margin of 1.24% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for ARB IOT Group was 0.00% per year.
ARB IOT Group (NAS:ARBB) 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
ARB IOT Group had a gross margin of 1.24% 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.
ARB IOT Group Gross Margin % Related Terms
ARB IOT Group Gross Margin % Historical Data
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The historical data trend for ARB IOT Group'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.
ARBB vs CRCW, GMM, SUIC: Gross Margin % Comparison
For the Information Technology Services subindustry, ARB IOT Group'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.
ARB IOT Group Gross Margin % vs Software Industry
For the Software industry and Technology sector, ARB IOT Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where ARB IOT Group'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.
ARB IOT Group (ARBB) has a Gross Margin % of 1.24% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on ARB IOT Group and its competitors. This is 94% below median its historical median of 20.39. According to the industry distribution chart, ARB IOT Group ranks #2597 out of 2685 companies in the Software industry, placing it in the top 96.7%.
Is ARB IOT Group's Gross Margin % too high?
ARB IOT Group's current Gross Margin % of 1.24% is 94% below median its 10-year median of 20.39. The Software industry median Gross Margin % is 40.45. ARB IOT Group's value of 1.24% is 96.9% below this industry median. Based on the distribution chart, ARB IOT Group ranks #2597 out of 2685 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, ARB IOT Group has a GF Score™ of 50/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does ARB IOT Group's Gross Margin % compare to CRCW and GMM?
According to the Software industry distribution chart, ARB IOT Group ranks #2597 out of 2685 companies for Gross Margin %. This places ARB IOT Group in the lower half of its industry. The industry median Gross Margin % is 40.45. ARB IOT Group's value of 1.24% is 96.9% below this benchmark. While the company's 10-year median is 20.39 vs. the industry median of 40.45, ARB IOT Group 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 40.45, based on 2,685 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. ARB IOT Group's current Gross Margin % of 1.24% is 96.9% 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 ARB IOT Group 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. ARB IOT Group's current Gross Margin % is 1.24%, which is 94% below median its own 10-year median of 20.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ARB IOT Group stock overvalued right now?
Based on GuruFocus' analysis, ARB IOT Group (ARBB) is currently considered Possible Value Trap. The stock's GF Value™ is $43.47, compared to a current price of $4.75 — trading 89.1% below its estimated fair value. The current Gross Margin % is 1.24%, which is 94% below median its 10-year median of 20.39 and 96.9% below the Software industry median of 40.45. ARB IOT Group's overall GF Score™ is 50/100 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 ARB IOT Group (ARBB), the current Gross Margin % is 1.24% 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.
Is ARB IOT Group (ARBB) Overvalued in 2026?
Based on GuruFocus' analysis, ARB IOT Group stock appears to be undervalued.
The current stock price of $4.75 is trading 89.1% below its estimated GF Value™ of $43.47.
GuruFocus considers ARB IOT Group to be Possible Value Trap.
Key valuation signals for ARBB:
Gross Margin %: 1.24% (94% below median its 10-year median of 20.39)
GF Value™: $43.47 vs. price of $4.75 (89.1% below fair value)
Industry Position: 96.9% below the Software median (#2597 of 2685)
No single metric tells the full story. See the ARBB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ARB IOT Group Ltd is a provider of complete solutions to the clients for the integration of Internet of Things (IoT) systems and devices from designing to project deployment. The company offers a wide range of IoT systems as well as provides customers with a substantial range of services such as system integration and system support services. It delivers solutions like designing, installation, testing and commissioning of various IoT systems and devices as well as integration of automated systems, including installation of wire and wireless and mechatronic works. The company operates in two reportable segments: (i) the provision of hardware and software of IoT solutions and (ii) Investment holding and others. The majority of revenue is generated from the IoT solutions segment.
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