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
RAS Technology Holdings had a gross margin of 91.16% for the quarter that ended in Dec. 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.
RAS Technology Holdings Gross Margin % Related Terms
RAS Technology Holdings Gross Margin % Historical Data
* 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.
ASX:RTH vs MSFT, ORCL, PLTR: Gross Margin % Comparison
For the Software - Infrastructure subindustry, RAS Technology Holdings'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.
RAS Technology Holdings Gross Margin % vs Software Industry
For the Software industry and Technology sector, RAS Technology Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where RAS Technology Holdings'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.
RAS Technology Holdings (ASX:RTH) has a Gross Margin % of 91.16% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on RAS Technology Holdings and its competitors. According to the industry distribution chart, RAS Technology Holdings ranks #39 out of 2683 companies in the Software industry, placing it in the top 1.5%.
Is RAS Technology Holdings' Gross Margin % too high?
RAS Technology Holdings' current Gross Margin % is 91.16%. The Software industry median Gross Margin % is 40.45. RAS Technology Holdings' value of 91.16% is 125.4% above this industry median. Based on the distribution chart, RAS Technology Holdings ranks #39 out of 2683 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, RAS Technology Holdings has a GF Score™ of 43/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does RAS Technology Holdings' Gross Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, RAS Technology Holdings ranks #39 out of 2683 companies for Gross Margin %. This places RAS Technology Holdings in the top 2% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.45. RAS Technology Holdings' value of 91.16% is 125.4% 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. RAS Technology Holdings's current Gross Margin % of 91.16% is 125.4% 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 RAS Technology Holdings 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. RAS Technology Holdings's current Gross Margin % is 91.16%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is RAS Technology Holdings stock overvalued right now?
Based on GuruFocus' analysis, RAS Technology Holdings (ASX:RTH) is currently considered Significantly Undervalued. The stock's GF Value™ is A$1.54, compared to a current price of A$0.52 — trading 66.6% below its estimated fair value. The current Gross Margin % is 91.16% and 125.4% above the Software industry median of 40.45. RAS Technology Holdings' overall GF Score™ is 43/100. 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 RAS Technology Holdings (ASX:RTH), the current Gross Margin % is 91.16% 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 RAS Technology Holdings (ASX:RTH) Overvalued in 2026?
Based on GuruFocus' analysis, RAS Technology Holdings stock appears to be undervalued.
The current stock price of A$0.52 is trading 66.6% below its estimated GF Value™ of A$1.54.
GuruFocus considers RAS Technology Holdings to be Significantly Undervalued.
Key valuation signals for ASX:RTH:
Gross Margin %: 91.16%
GF Value™: A$1.54 vs. price of A$0.52 (66.6% below fair value)
Industry Position: 125.4% above the Software median (#39 of 2683)
No single metric tells the full story. See the ASX:RTH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
RAS Technology Holdings Ltd is a provider of fully integrated premium data, enhanced content, SaaS solutions, and digital and media services to the racing and wagering industries. Geographically, the company operates in Australia, the United Kingdom, the United States, Asia, and the Rest of the World. The company generates the majority of its revenue from Australia.
43GF Score
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