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Digital Domain HoldingsHKSE:00547 +1.24%30 Gross Margin % is 11.21% as of Dec. 2025, which is 27% below its 10-year median of 15.36. GuruFocus rates HKSE:00547 with a GF Score™ of 30/100 and a GF Value™ of HK$0.29 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 941 Media - Diversified companies, Digital Domain Holdings ranks worse than 81.08% on this metric.
HKSE:00547's Gross Margin % is ranked worse than 81.08% of 941
companies
in the Media - Diversified industry
Industry Median: 38.99
vs HKSE:00547: 16.64
Digital Domain Holdings had a gross margin of 11.21% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Digital Domain Holdings was 8.70% per year.
Digital Domain Holdings (HKSE:00547) 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
Digital Domain Holdings had a gross margin of 11.21% 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.
Digital Domain Holdings Gross Margin % Related Terms
Digital Domain 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.
HKSE:00547 vs NFLX, DIS, WBD: Gross Margin % Comparison
For the Entertainment subindustry, Digital Domain 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.
Digital Domain Holdings Gross Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Digital Domain Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Digital Domain 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.
Digital Domain Holdings (HKSE:00547) has a Gross Margin % of 11.21% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Digital Domain Holdings and its competitors. This is 27% below median its historical median of 15.36. Over the past decade, Digital Domain Holdings' Gross Margin % has ranged from 8.82 to 22.62. According to the industry distribution chart, Digital Domain Holdings ranks #763 out of 941 companies in the Media - Diversified industry, placing it in the top 81.1%.
Is Digital Domain Holdings' Gross Margin % too high?
Digital Domain Holdings' current Gross Margin % of 11.21% is 27% below median its 10-year median of 15.36. Over the past 10 years, this metric has ranged from a low of 8.82 to a high of 22.62. The Media - Diversified industry median Gross Margin % is 38.99. Digital Domain Holdings' value of 11.21% is 71.2% below this industry median. Based on the distribution chart, Digital Domain Holdings ranks #763 out of 941 companies in the Media - Diversified industry, which is in the bottom quartile relative to peers. Overall, Digital Domain Holdings has a GF Score™ of 30/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Digital Domain Holdings' Gross Margin % compare to NFLX and DIS?
According to the Media - Diversified industry distribution chart, Digital Domain Holdings ranks #763 out of 941 companies for Gross Margin %. This places Digital Domain Holdings in the lower half of its industry. The industry median Gross Margin % is 38.99. Digital Domain Holdings' value of 11.21% is 71.2% below this benchmark. Historically, Digital Domain Holdings' own Gross Margin % has ranged from 8.82 to 22.62 over the past decade. While the company's 10-year median is 15.36 vs. the industry median of 38.99, Digital Domain 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 Media - Diversified company?
The median Gross Margin % among Media - Diversified companies is 38.99, based on 941 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. Digital Domain Holdings's current Gross Margin % of 11.21% is 71.2% 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 Digital Domain Holdings and its competitors. For the Media - Diversified industry, the median Gross Margin % is 38.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Digital Domain Holdings's current Gross Margin % is 11.21%, which is 27% below median its own 10-year median of 15.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Digital Domain Holdings stock overvalued right now?
Based on GuruFocus' analysis, Digital Domain Holdings (HKSE:00547) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$0.29, compared to a current price of HK$0.25 — trading 15.5% below its estimated fair value. The current Gross Margin % is 11.21%, which is 27% below median its 10-year median of 15.36 and 71.2% below the Media - Diversified industry median of 38.99. Digital Domain Holdings' overall GF Score™ is 30/100 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 Digital Domain Holdings (HKSE:00547), the current Gross Margin % is 11.21% 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 Digital Domain Holdings (HKSE:00547) Overvalued in 2026?
Based on GuruFocus' analysis, Digital Domain Holdings stock appears to be undervalued.
The current stock price of HK$0.25 is trading 15.5% below its estimated GF Value™ of HK$0.29.
GuruFocus considers Digital Domain Holdings to be Modestly Undervalued.
Key valuation signals for HKSE:00547:
Gross Margin %: 11.21% (27% below median its 10-year median of 15.36)
GF Value™: HK$0.29 vs. price of HK$0.25 (15.5% below fair value)
Industry Position: 71.2% below the Media - Diversified median (#763 of 941)
No single metric tells the full story. See the HKSE:00547 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Digital Domain Holdings Ltd is engaged in the media entertainment business and trading business. It provides visual effects and proprietary technologies for film, television, and immersive content. It also offers unparalleled feature film, virtual production, and video game cinematics expertise. The company's operating segments include Media Entertainment provides visual effects production and post production services and virtual human services, and Trading engaged in sales of semiconductor memory chips and esports products. The majority of the revenue is derived from the Media Entertainment segment. Geographically, it derives majority revenue from Canada, with operations spread across other countries such as Hong Kong, the PRC, the USA, United Kingdom, India, and Other countries/regions.
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