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7Road HoldingsHKSE:00797 +0.45%76 Gross Margin % is 71.44% as of Dec. 2025, which is 9% below its 10-year median of 78.21. GuruFocus rates HKSE:00797 with a GF Score™ of 76/100 and a GF Value™ of HK$1.92 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 498 Interactive Media companies, 7Road Holdings ranks better than 60.84% on this metric.
The historical rank and industry rank for 7Road Holdings's Gross Margin % or its related term are showing as below:
HKSE:00797'
s Gross Margin % Range Over the Past 10 Years
Min: 48.31 Med: 78.21 Max: 91.49
Current: 72.18
During the past 11 years, the highestGross Margin % of 7Road Holdings was 91.49%. The lowest was 48.31%. And the median was 78.21%.
HKSE:00797's Gross Margin % is ranked better than 60.84% of 498
companies
in the Interactive Media industry
Industry Median: 61.505
vs HKSE:00797: 72.18
7Road Holdings had a gross margin of 71.44% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for 7Road Holdings was 3.20% 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
7Road Holdings had a gross margin of 71.44% 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.
7Road Holdings Gross Margin % Related Terms
7Road Holdings Gross Margin % Historical Data
* Premium members only.
The historical data trend for 7Road 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:00797 vs NTES, TTWO, RBLX: Gross Margin % Comparison
For the Electronic Gaming & Multimedia subindustry, 7Road 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.
7Road Holdings Gross Margin % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, 7Road Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where 7Road 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.
7Road Holdings (HKSE:00797) has a Gross Margin % of 71.44% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on 7Road Holdings and its competitors. This is near median its historical median of 78.21. Over the past decade, 7Road Holdings' Gross Margin % has ranged from 48.31 to 91.49. According to the industry distribution chart, 7Road Holdings ranks #195 out of 498 companies in the Interactive Media industry, placing it in the top 39.2%.
Is 7Road Holdings' Gross Margin % too high?
7Road Holdings' current Gross Margin % of 71.44% is near median its 10-year median of 78.21. Over the past 10 years, this metric has ranged from a low of 48.31 to a high of 91.49. The Interactive Media industry median Gross Margin % is 61.51. 7Road Holdings' value of 71.44% is 16.2% above this industry median. Based on the distribution chart, 7Road Holdings ranks #195 out of 498 companies in the Interactive Media industry, which is above the industry midpoint. Overall, 7Road Holdings has a GF Score™ of 76/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does 7Road Holdings' Gross Margin % compare to NTES and TTWO?
According to the Interactive Media industry distribution chart, 7Road Holdings ranks #195 out of 498 companies for Gross Margin %. This puts 7Road Holdings in the upper half of its industry. The industry median Gross Margin % is 61.51. 7Road Holdings' value of 71.44% is 16.2% above this benchmark. Historically, 7Road Holdings' own Gross Margin % has ranged from 48.31 to 91.49 over the past decade. While the company's 10-year median is 78.21 vs. the industry median of 61.51, 7Road Holdings has consistently been above 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 61.51, based on 498 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. 7Road Holdings's current Gross Margin % of 71.44% is 16.2% above 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 7Road Holdings and its competitors. For the Interactive Media industry, the median Gross Margin % is 61.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. 7Road Holdings's current Gross Margin % is 71.44%, which is near median its own 10-year median of 78.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is 7Road Holdings stock overvalued right now?
Based on GuruFocus' analysis, 7Road Holdings (HKSE:00797) is currently considered Possible Value Trap. The stock's GF Value™ is HK$1.92, compared to a current price of HK$1.13 — trading 41.4% below its estimated fair value. The current Gross Margin % is 71.44%, which is near median its 10-year median of 78.21 and 16.2% above the Interactive Media industry median of 61.51. 7Road Holdings' overall GF Score™ is 76/100 with 4 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 7Road Holdings (HKSE:00797), the current Gross Margin % is 71.44% 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 7Road Holdings (HKSE:00797) Overvalued in 2026?
Based on GuruFocus' analysis, 7Road Holdings stock appears to be undervalued.
The current stock price of HK$1.13 is trading 41.4% below its estimated GF Value™ of HK$1.92.
GuruFocus considers 7Road Holdings to be Possible Value Trap.
Key valuation signals for HKSE:00797:
Gross Margin %: 71.44% (near median its 10-year median of 78.21)
GF Value™: HK$1.92 vs. price of HK$1.13 (41.4% below fair value)
Industry Position: 16.2% above the Interactive Media median (#195 of 498)
No single metric tells the full story. See the HKSE:00797 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
7Road Holdings Ltd is a web-based and mobile online game developer and publisher in China. The company is engaged in the R&D, operation and licensing of several popular web games. It has developed games like DDTank, Chuanqi, and Wartune.
76GF Score
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