GigaCloud TechnologyFRA:K71 +0.14%65 Gross Margin % is 23.88% as of Mar. 2026, which is 2% above its 10-year median of 23.31. GuruFocus rates FRA:K71 with a GF Score™ of 65/100 and a GF Value™ of €31.66 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 2,685 Software companies, GigaCloud Technology ranks worse than 73.89% 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
GigaCloud Technology had a gross margin of 23.88% for the quarter that ended in Mar. 2026 => Competition eroding margins
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.
GigaCloud Technology Gross Margin % Related Terms
GigaCloud Technology Gross Margin % Historical Data
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The historical data trend for GigaCloud Technology'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.
FRA:K71 vs TUYA, RXT, RDWR: Gross Margin % Comparison
For the Software - Infrastructure subindustry, GigaCloud Technology'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.
GigaCloud Technology Gross Margin % vs Software Industry
For the Software industry and Technology sector, GigaCloud Technology's Gross Margin % distribution charts can be found below:
* The bar in red indicates where GigaCloud Technology'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.
GigaCloud Technology (FRA:K71) has a Gross Margin % of 23.88% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on GigaCloud Technology and its competitors. This is near median its historical median of 23.31. Over the past decade, GigaCloud Technology's Gross Margin % has ranged from 16.96 to 27.27. According to the industry distribution chart, GigaCloud Technology ranks #1984 out of 2685 companies in the Software industry, placing it in the top 73.9%.
Is GigaCloud Technology's Gross Margin % too high?
GigaCloud Technology's current Gross Margin % of 23.88% is near median its 10-year median of 23.31. Over the past 10 years, this metric has ranged from a low of 16.96 to a high of 27.27. The Software industry median Gross Margin % is 40.45. GigaCloud Technology's value of 23.88% is 41% below this industry median. Based on the distribution chart, GigaCloud Technology ranks #1984 out of 2685 companies in the Software industry, which is below the industry midpoint. Overall, GigaCloud Technology has a GF Score™ of 65/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does GigaCloud Technology's Gross Margin % compare to TUYA and RXT?
According to the Software industry distribution chart, GigaCloud Technology ranks #1984 out of 2685 companies for Gross Margin %. This places GigaCloud Technology in the lower half of its industry. The industry median Gross Margin % is 40.45. GigaCloud Technology's value of 23.88% is 41% below this benchmark. Historically, GigaCloud Technology's own Gross Margin % has ranged from 16.96 to 27.27 over the past decade. While the company's 10-year median is 23.31 vs. the industry median of 40.45, GigaCloud Technology 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 40.45, based on 2,685 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. GigaCloud Technology's current Gross Margin % of 23.88% is 41% 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 GigaCloud Technology 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. GigaCloud Technology's current Gross Margin % is 23.88%, which is near median its own 10-year median of 23.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GigaCloud Technology stock overvalued right now?
Based on GuruFocus' analysis, GigaCloud Technology (FRA:K71) is currently considered Modestly Undervalued. The stock's GF Value™ is €31.66, compared to a current price of €27.94 — trading 11.7% below its estimated fair value. The current Gross Margin % is 23.88%, which is near median its 10-year median of 23.31 and 41% below the Software industry median of 40.45. GigaCloud Technology's overall GF Score™ is 65/100 with 2 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 GigaCloud Technology (FRA:K71), the current Gross Margin % is 23.88% as of Mar. 2026. 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 GigaCloud Technology (FRA:K71) Overvalued in 2026?
Based on GuruFocus' analysis, GigaCloud Technology stock appears to be undervalued.
The current stock price of €27.94 is trading 11.7% below its estimated GF Value™ of €31.66.
GuruFocus considers GigaCloud Technology to be Modestly Undervalued.
Key valuation signals for FRA:K71:
Gross Margin %: 23.88% (near median its 10-year median of 23.31)
GF Value™: €31.66 vs. price of €27.94 (11.7% below fair value)
Industry Position: 41% below the Software median (#1984 of 2685)
No single metric tells the full story. See the FRA:K71 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
GigaCloud Technology Inc provides end-to-end and B2B e-commerce solutions for large parcel merchandise. Its B2B e-commerce platform, which is referred to as the GigaCloud Marketplace, integrates everything from discovery, payments, and logistics tools into one easy-to-use platform. It offers online and offline integrated cross-border transaction and delivery services for furniture and large merchandise. Its marketplace seamlessly connects manufacturers in Asia with resellers in the U.S., Asia, and Europe to execute cross-border transactions with confidence, speed, and efficiency. It offers a truly comprehensive solution that transports products from the manufacturer's warehouse to end customers, all at one fixed price. It earns the majority of its revenue from the United States.
65GF Score
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