Genesis Scale HoldingsHKSE:00439 +7.55%50 Gross Margin % is 25.50% as of Dec. 2025, which is 5% below its 10-year median of 26.74. GuruFocus rates HKSE:00439 with a GF Score™ of 50/100 and a GF Value™ of HK$1.32 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 343 Aerospace & Defense companies, Genesis Scale Holdings ranks worse than 51.02% on this metric.
HKSE:00439's Gross Margin % is ranked worse than 51.02% of 343
companies
in the Aerospace & Defense industry
Industry Median: 26.61
vs HKSE:00439: 26.01
Genesis Scale Holdings had a gross margin of 25.50% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Genesis Scale Holdings was -8.30% per year.
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
Genesis Scale Holdings had a gross margin of 25.50% for the quarter that ended in Dec. 2025 => 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.
Genesis Scale Holdings Gross Margin % Related Terms
Genesis Scale Holdings Gross Margin % Historical Data
* Premium members only.
The historical data trend for Genesis Scale 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.
HKSE:00439 vs SPCX, GE, RTX: Gross Margin % Comparison
For the Aerospace & Defense subindustry, Genesis Scale 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.
Genesis Scale Holdings Gross Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Genesis Scale Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Genesis Scale 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.
Genesis Scale Holdings (HKSE:00439) has a Gross Margin % of 25.50% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Genesis Scale Holdings and its competitors. This is near median its historical median of 26.74. Over the past decade, Genesis Scale Holdings' Gross Margin % has ranged from 11.90 to 68.31. According to the industry distribution chart, Genesis Scale Holdings ranks #175 out of 343 companies in the Aerospace & Defense industry, placing it in the top 51%.
Is Genesis Scale Holdings' Gross Margin % too high?
Genesis Scale Holdings' current Gross Margin % of 25.50% is near median its 10-year median of 26.74. Over the past 10 years, this metric has ranged from a low of 11.90 to a high of 68.31. The Aerospace & Defense industry median Gross Margin % is 26.61. Genesis Scale Holdings' value of 25.50% is 4.2% below this industry median. Based on the distribution chart, Genesis Scale Holdings ranks #175 out of 343 companies in the Aerospace & Defense industry, which is below the industry midpoint. Overall, Genesis Scale Holdings has a GF Score™ of 50/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Genesis Scale Holdings' Gross Margin % compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Genesis Scale Holdings ranks #175 out of 343 companies for Gross Margin %. This places Genesis Scale Holdings in the lower half of its industry. The industry median Gross Margin % is 26.61. Genesis Scale Holdings' value of 25.50% is 4.2% below this benchmark. Historically, Genesis Scale Holdings' own Gross Margin % has ranged from 11.90 to 68.31 over the past decade. While the company's 10-year median is 26.74 vs. the industry median of 26.61, Genesis Scale Holdings 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 Aerospace & Defense company?
The median Gross Margin % among Aerospace & Defense companies is 26.61, based on 343 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. Genesis Scale Holdings's current Gross Margin % of 25.50% is 4.2% 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 Genesis Scale Holdings and its competitors. For the Aerospace & Defense industry, the median Gross Margin % is 26.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Genesis Scale Holdings's current Gross Margin % is 25.50%, which is near median its own 10-year median of 26.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Genesis Scale Holdings stock overvalued right now?
Based on GuruFocus' analysis, Genesis Scale Holdings (HKSE:00439) is currently considered Possible Value Trap. The stock's GF Value™ is HK$1.32, compared to a current price of HK$0.57 — trading 56.8% below its estimated fair value. The current Gross Margin % is 25.50%, which is near median its 10-year median of 26.74 and 4.2% below the Aerospace & Defense industry median of 26.61. Genesis Scale Holdings' overall GF Score™ is 50/100 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 Genesis Scale Holdings (HKSE:00439), the current Gross Margin % is 25.50% 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 Genesis Scale Holdings (HKSE:00439) Overvalued in 2026?
Based on GuruFocus' analysis, Genesis Scale Holdings stock appears to be undervalued.
The current stock price of HK$0.57 is trading 56.8% below its estimated GF Value™ of HK$1.32.
GuruFocus considers Genesis Scale Holdings to be Possible Value Trap.
Key valuation signals for HKSE:00439:
Gross Margin %: 25.50% (near median its 10-year median of 26.74)
GF Value™: HK$1.32 vs. price of HK$0.57 (56.8% below fair value)
Industry Position: 4.2% below the Aerospace & Defense median (#175 of 343)
No single metric tells the full story. See the HKSE:00439 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Genesis Scale Holdings Ltd is engaged in the provision of AI-empowered terminal products and integrated technical services and solutions in different verticals. The company is also engaged in design, production and manufacturing of high-end industrial components. The products and serices of the company include Police Smart Helmet, and Smart Fire Helmets. Geographically, the company derives its revenue from PRC.
50GF Score
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