Futong Technology Development Holdings (HKSE:00465) 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
Futong Technology Development Holdings had a gross margin of 13.09% 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.
Futong Technology Development Holdings Gross Margin % Related Terms
Futong Technology Development Holdings 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.
Futong Technology Development Holdings Gross Margin % Chart
Futong Technology Development Holdings Annual Data
HKSE:00465 vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, Futong Technology Development 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.
Futong Technology Development Holdings Gross Margin % vs Software Industry
* 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.
Futong Technology Development Holdings (HKSE:00465) has a Gross Margin % of 13.09% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Futong Technology Development Holdings and its competitors. This is 18% above median its historical median of 11.08. Over the past decade, Futong Technology Development Holdings' Gross Margin % has ranged from 6.06 to 16.90. According to the industry distribution chart, Futong Technology Development Holdings ranks #2408 out of 2677 companies in the Software industry, placing it in the top 90%.
Is Futong Technology Development Holdings' Gross Margin % too high?
Futong Technology Development Holdings' current Gross Margin % of 13.09% is 18% above median its 10-year median of 11.08. Over the past 10 years, this metric has ranged from a low of 6.06 to a high of 16.90. The Software industry median Gross Margin % is 40.49. Futong Technology Development Holdings' value of 13.09% is 67.7% below this industry median. Based on the distribution chart, Futong Technology Development Holdings ranks #2408 out of 2677 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Futong Technology Development Holdings has a GF Score™ of 26/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Futong Technology Development Holdings' Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Futong Technology Development Holdings ranks #2408 out of 2677 companies for Gross Margin %. This places Futong Technology Development Holdings in the lower half of its industry. The industry median Gross Margin % is 40.49. Futong Technology Development Holdings' value of 13.09% is 67.7% below this benchmark. Historically, Futong Technology Development Holdings' own Gross Margin % has ranged from 6.06 to 16.90 over the past decade. While the company's 10-year median is 11.08 vs. the industry median of 40.49, Futong Technology Development 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 a Software company?
The median Gross Margin % among Software companies is 40.49, based on 2,677 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. Futong Technology Development Holdings's current Gross Margin % of 13.09% is 67.7% 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 Futong Technology Development Holdings and its competitors. For the Software industry, the median Gross Margin % is 40.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Futong Technology Development Holdings's current Gross Margin % is 13.09%, which is 18% above median its own 10-year median of 11.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Futong Technology Development Holdings stock overvalued right now?
Based on GuruFocus' analysis, Futong Technology Development Holdings (HKSE:00465) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.20, compared to a current price of HK$3.61 — trading 1705% above its estimated fair value. The current Gross Margin % is 13.09%, which is 18% above median its 10-year median of 11.08 and 67.7% below the Software industry median of 40.49. Futong Technology Development Holdings' overall GF Score™ is 26/100 with 3 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 Futong Technology Development Holdings (HKSE:00465), the current Gross Margin % is 13.09% 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 Futong Technology Development Holdings (HKSE:00465) Overvalued in 2026?
Based on GuruFocus' analysis, Futong Technology Development Holdings stock appears to be overvalued.
The current stock price of HK$3.61 is trading 1705% above its estimated GF Value™ of HK$0.20.
GuruFocus considers Futong Technology Development Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:00465:
Gross Margin %: 13.09% (18% above median its 10-year median of 11.08)
GF Value™: HK$0.20 vs. price of HK$3.61 (1705% above fair value)
Industry Position: 67.7% below the Software median (#2408 of 2677)
No single metric tells the full story. See the HKSE:00465 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Futong Technology Development Holdings Business Description
Futong Technology Development Holdings Ltd is an enterprise digital transformation services provider in China. It uses technologies such as cloud computing and AI to provide enterprise customers with digital products, solutions, and professional IT services. The Group's two key product offerings are Cloud Intelligence and Data Intelligence. Maximum revenue is derived from Cloud Intelligence product offerings, which include its proprietary cloud-computing products, including CloudScape, CloudOne, CloudShare, CloudObs, and CloudAtlas. The Data Intelligence products include Voice of Customer, IntelligenceCore Data Workshop, and IntelligenceCore AI Agent Management Platform, among others, integrating AI technology into the different business scenarios of customers in various industries.
26GF Score
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