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FHGDF (Founder Holdings) Gross Margin % : 45.34% (As of Jun. 2024)


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What is Founder Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Founder Holdings's Gross Profit for the six months ended in Jun. 2024 was $22.4 Mil. Founder Holdings's Revenue for the six months ended in Jun. 2024 was $49.3 Mil. Therefore, Founder Holdings's Gross Margin % for the quarter that ended in Jun. 2024 was 45.34%.


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

FHGDF' s Gross Margin % Range Over the Past 10 Years
Min: 33.66   Med: 47.68   Max: 51.16
Current: 48.83


During the past 13 years, the highest Gross Margin % of Founder Holdings was 51.16%. The lowest was 33.66%. And the median was 47.68%.

FHGDF's Gross Margin % is ranked better than
58.52% of 2628 companies
in the Software industry
Industry Median: 41.24 vs FHGDF: 48.83

Founder Holdings had a gross margin of 45.34% for the quarter that ended in Jun. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Founder Holdings was 0.50% per year.


Founder Holdings Gross Margin % Historical Data

The historical data trend for Founder Holdings'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.

* Premium members only.

Founder Holdings Gross Margin % Chart

Founder Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 49.28 47.39 47.97 51.16 49.37

Founder Holdings Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 47.65 52.95 46.67 51.03 45.34

Competitive Comparison of Founder Holdings's Gross Margin %

For the Software - Application subindustry, Founder 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.


Founder Holdings's Gross Margin % Distribution in the Software Industry

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

* The bar in red indicates where Founder Holdings's Gross Margin % falls into.



Founder Holdings Gross Margin % Calculation

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

Founder Holdings's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=62.1 / 125.743
=(Revenue - Cost of Goods Sold) / Revenue
=(125.743 - 63.658) / 125.743
=49.37 %

Founder Holdings's Gross Margin for the quarter that ended in Jun. 2024 is calculated as


Gross Margin % (Q: Jun. 2024 )=Gross Profit (Q: Jun. 2024 ) / Revenue (Q: Jun. 2024 )
=22.4 / 49.305
=(Revenue - Cost of Goods Sold) / Revenue
=(49.305 - 26.951) / 49.305
=45.34 %

* 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.


Founder Holdings  (OTCPK:FHGDF) 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

Founder Holdings had a gross margin of 45.34% for the quarter that ended in Jun. 2024 => 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.


Founder Holdings Gross Margin % Related Terms

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Founder Holdings Business Description

Traded in Other Exchanges
Address
9 Hoi Shing Road, Unit 1408, 14th Floor, New Territories, Cable TV Tower, Tsuen Wan, Hong Kong, HKG
Founder Holdings Ltd is engaged in software development and systems integration. It operates in the business division of the provision of software development and system integration and information products distribution. Geographically, the company operates in Hong Kong, Mainland China, and other countries, of which key revenue is generated from Mainland China. The group serves in the fields of printing, media, publishing, big data and fonts library.

Founder Holdings Headlines

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