Founder HoldingsFHGDF 46 Gross Margin % is 49.85% as of Dec. 2025, which is 2% above its 10-year median of 48.94. GuruFocus rates FHGDF with a GF Score™ of 46/100 and a GF Value™ of $0.07 (Fairly Valued). The stock has 4 warning signs investors should review. Among 2,683 Software companies, Founder Holdings ranks better than 60.53% 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
Founder Holdings had a gross margin of 49.85% 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.
Founder Holdings Gross Margin % Related Terms
Founder Holdings Gross Margin % Historical Data
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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.
FHGDF vs CRM, SHOP, UBER: Gross Margin % Comparison
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 Gross Margin % vs 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.
* 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 (FHGDF) has a Gross Margin % of 49.85% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Founder Holdings and its competitors. This is near median its historical median of 48.94. Over the past decade, Founder Holdings' Gross Margin % has ranged from 40.94 to 51.16. According to the industry distribution chart, Founder Holdings ranks #1059 out of 2683 companies in the Software industry, placing it in the top 39.5%.
Is Founder Holdings' Gross Margin % too high?
Founder Holdings' current Gross Margin % of 49.85% is near median its 10-year median of 48.94. Over the past 10 years, this metric has ranged from a low of 40.94 to a high of 51.16. The Software industry median Gross Margin % is 40.45. Founder Holdings' value of 49.85% is 23.2% above this industry median. Based on the distribution chart, Founder Holdings ranks #1059 out of 2683 companies in the Software industry, which is above the industry midpoint. Overall, Founder Holdings has a GF Score™ of 46/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Founder Holdings' Gross Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, Founder Holdings ranks #1059 out of 2683 companies for Gross Margin %. This puts Founder Holdings in the upper half of its industry. The industry median Gross Margin % is 40.45. Founder Holdings' value of 49.85% is 23.2% above this benchmark. Historically, Founder Holdings' own Gross Margin % has ranged from 40.94 to 51.16 over the past decade. While the company's 10-year median is 48.94 vs. the industry median of 40.45, Founder Holdings 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 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. Founder Holdings's current Gross Margin % of 49.85% is 23.2% 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 Founder 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. Founder Holdings's current Gross Margin % is 49.85%, which is near median its own 10-year median of 48.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Founder Holdings stock overvalued right now?
Based on GuruFocus' analysis, Founder Holdings (FHGDF) is currently considered Fairly Valued. The stock's GF Value™ is $0.07, compared to a current price of $0.07 — trading 5.4% above its estimated fair value. The current Gross Margin % is 49.85%, which is near median its 10-year median of 48.94 and 23.2% above the Software industry median of 40.45. Founder Holdings' overall GF Score™ is 46/100 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 Founder Holdings (FHGDF), the current Gross Margin % is 49.85% 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 Founder Holdings (FHGDF) Overvalued in 2026?
Based on GuruFocus' analysis, Founder Holdings stock appears to be overvalued.
The current stock price of $0.07 is trading 5.4% above its estimated GF Value™ of $0.07.
GuruFocus considers Founder Holdings to be Fairly Valued.
Key valuation signals for FHGDF:
Gross Margin %: 49.85% (near median its 10-year median of 48.94)
GF Value™: $0.07 vs. price of $0.07 (5.4% above fair value)
Industry Position: 23.2% above the Software median (#1059 of 2683)
No single metric tells the full story. See the FHGDF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founder Holdings Ltd is an investment holding company engaged in providing information technology (IT) system services. Its core activities include the sale of software, hardware, and information products, along with software development and system integration. The Group serves industries such as printing, media, publishing, big data, and font libraries, offering advanced information processing technologies, solutions, and value-added services to support seamless digital experiences. It operates in domestic and overseas markets, with the majority of its revenue generated from Mainland China, alongside operations in Hong Kong and other regions.
46GF Score
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