Cheer HoldingCHR +10.86%54 Gross Margin % is 71.18% as of Dec. 2025, which is 0% above its 10-year median of 70.97. GuruFocus rates CHR with a GF Score™ of 54/100 and a GF Value™ of $57.90 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 953 Media - Diversified companies, Cheer Holding ranks better than 82.06% 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
Cheer Holding had a gross margin of 71.18% 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.
Cheer Holding Gross Margin % Related Terms
Cheer Holding Gross Margin % Historical Data
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The historical data trend for Cheer Holding'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.
CHR vs VSME, CNET, DRCT: Gross Margin % Comparison
For the Advertising Agencies subindustry, Cheer Holding'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.
Cheer Holding Gross Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Cheer Holding's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Cheer Holding'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.
Cheer Holding (CHR) has a Gross Margin % of 71.18% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Cheer Holding and its competitors. This is near median its historical median of 70.97. Over the past decade, Cheer Holding's Gross Margin % has ranged from 35.38 to 77.16. According to the industry distribution chart, Cheer Holding ranks #171 out of 953 companies in the Media - Diversified industry, placing it in the top 17.9%.
Is Cheer Holding's Gross Margin % too high?
Cheer Holding's current Gross Margin % of 71.18% is near median its 10-year median of 70.97. Over the past 10 years, this metric has ranged from a low of 35.38 to a high of 77.16. The Media - Diversified industry median Gross Margin % is 38.90. Cheer Holding's value of 71.18% is 83% above this industry median. Based on the distribution chart, Cheer Holding ranks #171 out of 953 companies in the Media - Diversified industry, which is in the top quartile — a strong position relative to peers. Overall, Cheer Holding has a GF Score™ of 54/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Cheer Holding's Gross Margin % compare to VSME and CNET?
According to the Media - Diversified industry distribution chart, Cheer Holding ranks #171 out of 953 companies for Gross Margin %. This places Cheer Holding in the top 18% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 38.90. Cheer Holding's value of 71.18% is 83% above this benchmark. Historically, Cheer Holding's own Gross Margin % has ranged from 35.38 to 77.16 over the past decade. While the company's 10-year median is 70.97 vs. the industry median of 38.90, Cheer Holding has consistently been above 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 Media - Diversified company?
The median Gross Margin % among Media - Diversified companies is 38.90, based on 953 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. Cheer Holding's current Gross Margin % of 71.18% is 83% 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 Cheer Holding and its competitors. For the Media - Diversified industry, the median Gross Margin % is 38.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cheer Holding's current Gross Margin % is 71.18%, which is near median its own 10-year median of 70.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cheer Holding stock overvalued right now?
Based on GuruFocus' analysis, Cheer Holding (CHR) is currently considered Possible Value Trap. The stock's GF Value™ is $57.90, compared to a current price of $1.94 — trading 96.6% below its estimated fair value. The current Gross Margin % is 71.18%, which is near median its 10-year median of 70.97 and 83% above the Media - Diversified industry median of 38.90. Cheer Holding's overall GF Score™ is 54/100 with 6 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 Cheer Holding (CHR), the current Gross Margin % is 71.18% 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 Cheer Holding (CHR) Overvalued in 2026?
Based on GuruFocus' analysis, Cheer Holding stock appears to be undervalued.
The current stock price of $1.94 is trading 96.6% below its estimated GF Value™ of $57.90.
GuruFocus considers Cheer Holding to be Possible Value Trap.
Key valuation signals for CHR:
Gross Margin %: 71.18% (near median its 10-year median of 70.97)
GF Value™: $57.90 vs. price of $1.94 (96.6% below fair value)
Industry Position: 83% above the Media - Diversified median (#171 of 953)
No single metric tells the full story. See the CHR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cheer Holding Inc is a provider of next generation mobile internet infrastructure and platform services in China. It is engaged in building a digital ecosystem that integrates platforms, applications, technology, and industry into a cohesive system, thereby creating a new, open business environment that leverages AI technology. Its portfolio includes various products and services, such as Polaris Intelligent Cloud, CHEERS Telepathy, CHEERS Open Platform, CHEERS Video, CHEERS e-Mall, CheerCar, CheerChat, CHEERS Fresh Group-Buying E-commerce Platform, Digital Innovation Research Institute, CHEERS Livestreaming, variety show series, IP short video matrix, and more.
54GF Score
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