GungHo Online EntertainmentGUNGF 71 Gross Margin % is 43.03% as of Dec. 2025, which is 21% below its 10-year median of 54.54. GuruFocus rates GUNGF with a GF Score™ of 71/100 and a GF Value™ of $22.26 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 497 Interactive Media companies, GungHo Online Entertainment ranks worse than 68.01% on this metric.
GungHo Online Entertainment (OTCPK:GUNGF) 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
GungHo Online Entertainment had a gross margin of 43.03% 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.
GungHo Online Entertainment Gross Margin % Related Terms
GungHo Online Entertainment Gross Margin % Historical Data
* 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.
GUNGF vs NTES, EA, TTWO: Gross Margin % Comparison
For the Electronic Gaming & Multimedia subindustry, GungHo Online Entertainment'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.
GungHo Online Entertainment Gross Margin % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, GungHo Online Entertainment's Gross Margin % distribution charts can be found below:
* The bar in red indicates where GungHo Online Entertainment'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.
GungHo Online Entertainment (GUNGF) has a Gross Margin % of 43.03% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on GungHo Online Entertainment and its competitors. This is 21% below median its historical median of 54.54. Over the past decade, GungHo Online Entertainment's Gross Margin % has ranged from 44.51 to 65.48. According to the industry distribution chart, GungHo Online Entertainment ranks #338 out of 497 companies in the Interactive Media industry, placing it in the top 68%.
Is GungHo Online Entertainment's Gross Margin % too high?
GungHo Online Entertainment's current Gross Margin % of 43.03% is 21% below median its 10-year median of 54.54. Over the past 10 years, this metric has ranged from a low of 44.51 to a high of 65.48. The Interactive Media industry median Gross Margin % is 62.58. GungHo Online Entertainment's value of 43.03% is 31.2% below this industry median. Based on the distribution chart, GungHo Online Entertainment ranks #338 out of 497 companies in the Interactive Media industry, which is below the industry midpoint. Overall, GungHo Online Entertainment has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does GungHo Online Entertainment's Gross Margin % compare to NTES and EA?
According to the Interactive Media industry distribution chart, GungHo Online Entertainment ranks #338 out of 497 companies for Gross Margin %. This places GungHo Online Entertainment in the lower half of its industry. The industry median Gross Margin % is 62.58. GungHo Online Entertainment's value of 43.03% is 31.2% below this benchmark. Historically, GungHo Online Entertainment's own Gross Margin % has ranged from 44.51 to 65.48 over the past decade. While the company's 10-year median is 54.54 vs. the industry median of 62.58, GungHo Online Entertainment 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 an Interactive Media company?
The median Gross Margin % among Interactive Media companies is 62.58, based on 497 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. GungHo Online Entertainment's current Gross Margin % of 43.03% is 31.2% 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 GungHo Online Entertainment and its competitors. For the Interactive Media industry, the median Gross Margin % is 62.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. GungHo Online Entertainment's current Gross Margin % is 43.03%, which is 21% below median its own 10-year median of 54.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GungHo Online Entertainment stock overvalued right now?
Based on GuruFocus' analysis, GungHo Online Entertainment (GUNGF) is currently considered Modestly Undervalued. The stock's GF Value™ is $22.26, compared to a current price of $15.80 — trading 29% below its estimated fair value. The current Gross Margin % is 43.03%, which is 21% below median its 10-year median of 54.54 and 31.2% below the Interactive Media industry median of 62.58. GungHo Online Entertainment's overall GF Score™ is 71/100 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 GungHo Online Entertainment (GUNGF), the current Gross Margin % is 43.03% 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 GungHo Online Entertainment (GUNGF) Overvalued in 2026?
Based on GuruFocus' analysis, GungHo Online Entertainment stock appears to be undervalued.
The current stock price of $15.80 is trading 29% below its estimated GF Value™ of $22.26.
GuruFocus considers GungHo Online Entertainment to be Modestly Undervalued.
Key valuation signals for GUNGF:
Gross Margin %: 43.03% (21% below median its 10-year median of 54.54)
GF Value™: $22.26 vs. price of $15.80 (29% below fair value)
Industry Position: 31.2% below the Interactive Media median (#338 of 497)
No single metric tells the full story. See the GUNGF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
GungHo Online Entertainment Inc is a Japanese company that plans, develops, publishes, and distributes online video games. Its portfolio includes games for smartphones, PCs, consoles, and handheld gaming devices. The company operates across several business segments, including the operation and distribution of smartphone games; the planning, development, and sale of console games; and the planning, development, licensing, and distribution of PC online games. Additionally, it is involved in the development and delivery of games for smartphones, consoles, and portable gaming platforms.
71GF Score
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