Borqs TechnologiesBRQSF +0.71%37 Gross Margin % is 8.03% as of Dec. 2025, which is 9% above its 10-year median of 7.40. GuruFocus rates BRQSF with a GF Score™ of 37/100 and a GF Value™ of $0.05 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 2,681 Software companies, Borqs Technologies ranks worse than 95.19% 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
Borqs Technologies had a gross margin of 8.03% 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.
Borqs Technologies Gross Margin % Related Terms
Borqs Technologies Gross Margin % Historical Data
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The historical data trend for Borqs 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.
BRQSF vs CYAB, OLB, YYAI: Gross Margin % Comparison
For the Software - Infrastructure subindustry, Borqs 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.
Borqs Technologies Gross Margin % vs Software Industry
For the Software industry and Technology sector, Borqs Technologies's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Borqs 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.
Borqs Technologies (BRQSF) has a Gross Margin % of 8.03% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Borqs Technologies and its competitors. This is near median its historical median of 7.40. According to the industry distribution chart, Borqs Technologies ranks #2552 out of 2681 companies in the Software industry, placing it in the top 95.2%.
Is Borqs Technologies' Gross Margin % too high?
Borqs Technologies' current Gross Margin % of 8.03% is near median its 10-year median of 7.40. The Software industry median Gross Margin % is 40.41. Borqs Technologies' value of 8.03% is 80.1% below this industry median. Based on the distribution chart, Borqs Technologies ranks #2552 out of 2681 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Borqs Technologies has a GF Score™ of 37/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Borqs Technologies' Gross Margin % compare to CYAB and OLB?
According to the Software industry distribution chart, Borqs Technologies ranks #2552 out of 2681 companies for Gross Margin %. This places Borqs Technologies in the lower half of its industry. The industry median Gross Margin % is 40.41. Borqs Technologies' value of 8.03% is 80.1% below this benchmark. While the company's 10-year median is 7.40 vs. the industry median of 40.41, Borqs Technologies 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 40.41, based on 2,681 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. Borqs Technologies's current Gross Margin % of 8.03% is 80.1% 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 Borqs Technologies and its competitors. For the Software industry, the median Gross Margin % is 40.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Borqs Technologies's current Gross Margin % is 8.03%, which is near median its own 10-year median of 7.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Borqs Technologies stock overvalued right now?
Based on GuruFocus' analysis, Borqs Technologies (BRQSF) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.05, compared to a current price of $0.14 — trading 182% above its estimated fair value. The current Gross Margin % is 8.03%, which is near median its 10-year median of 7.40 and 80.1% below the Software industry median of 40.41. Borqs Technologies' overall GF Score™ is 37/100 with 5 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 Borqs Technologies (BRQSF), the current Gross Margin % is 8.03% 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 Borqs Technologies (BRQSF) Overvalued in 2026?
Based on GuruFocus' analysis, Borqs Technologies stock appears to be overvalued.
The current stock price of $0.14 is trading 182% above its estimated GF Value™ of $0.05.
GuruFocus considers Borqs Technologies to be Significantly Overvalued.
Key valuation signals for BRQSF:
Gross Margin %: 8.03% (near median its 10-year median of 7.40)
GF Value™: $0.05 vs. price of $0.14 (182% above fair value)
Industry Position: 80.1% below the Software median (#2552 of 2681)
No single metric tells the full story. See the BRQSF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Borqs Technologies Inc is focused on software, development services, and products providing customizable, differentiated, and scalable Android-based smart connected devices and cloud service solutions. The Company provides commercial-grade Android platform software for mobile chipset manufacturers, mobile device OEMs, and mobile operators, as well as complete product solutions of mobile connected devices for enterprise and consumer applications. It developed the reference Android software platform and hardware platform for Intel and Qualcomm phones and tablets. It provided Connected Solutions customers with customized, integrated, commercial-grade Android platform software and service solutions through the targeted BorqsWare software platform solutions.
37GF Score
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