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GBA Holdings (HKSE:00261) 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
GBA Holdings had a gross margin of -4.31% for the quarter that ended in Dec. 2025 => No sustainable 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.
GBA Holdings Gross Margin % Related Terms
GBA Holdings Gross Margin % Historical Data
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The historical data trend for GBA 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.
For the Conglomerates subindustry, GBA 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.
GBA Holdings Gross Margin % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, GBA Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where GBA 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.
GBA Holdings (HKSE:00261) has a Gross Margin % of -4.31% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on GBA Holdings and its competitors. According to the industry distribution chart, GBA Holdings ranks #513 out of 515 companies in the Conglomerates industry, placing it in the top 99.6%.
Is GBA Holdings' Gross Margin % too high?
GBA Holdings' current Gross Margin % is -4.31%. Based on the distribution chart, GBA Holdings ranks #513 out of 515 companies in the Conglomerates industry, which is in the bottom quartile relative to peers. Overall, GBA Holdings has a GF Score™ of 23/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does GBA Holdings' Gross Margin % compare to MMM and HON?
According to the Conglomerates industry distribution chart, GBA Holdings ranks #513 out of 515 companies for Gross Margin %. This places GBA Holdings in the lower half of its industry. The industry median Gross Margin % is 25.88. 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 Conglomerates company?
The median Gross Margin % among Conglomerates companies is 25.88, based on 515 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. 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 GBA Holdings and its competitors. For the Conglomerates industry, the median Gross Margin % is 25.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. GBA Holdings's current Gross Margin % is -4.31%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GBA Holdings stock overvalued right now?
Based on GuruFocus' analysis, GBA Holdings (HKSE:00261) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.66, compared to a current price of HK$0.21 — trading 68% below its estimated fair value. The current Gross Margin % is -4.31%. GBA Holdings' overall GF Score™ is 23/100 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 GBA Holdings (HKSE:00261), the current Gross Margin % is -4.31% 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 GBA Holdings (HKSE:00261) Overvalued in 2026?
Based on GuruFocus' analysis, GBA Holdings stock appears to be undervalued.
The current stock price of HK$0.21 is trading 68% below its estimated GF Value™ of HK$0.66.
GuruFocus considers GBA Holdings to be Possible Value Trap.
Key valuation signals for HKSE:00261:
Gross Margin %: -4.31%
GF Value™: HK$0.66 vs. price of HK$0.21 (68% below fair value)
No single metric tells the full story. See the HKSE:00261 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
GBA Holdings Ltd is an investment holding company. The Group is principally engaged in Property Business in the PRC, the Finance Business, the Automobile Business, the Catering Business and the Corporate Consulting Services Business in Hong Kong. The company generates majority of revenue from Property business segment which representing the development and sale of properties. The Group's operations are mainly located in Mainland China and Hong Kong.
23GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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