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Value Convergence HoldingsHKSE:00821 -1.85%17 Gross Margin % is 63.92% as of Dec. 2025, which is 1376% above its 10-year median of 4.33. GuruFocus rates HKSE:00821 with a GF Score™ of 17/100. The stock has 3 warning signs investors should review. Among 622 Capital Markets companies, Value Convergence Holdings ranks worse than 68.17% on this metric.
Value Convergence Holdings (HKSE:00821) 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
Value Convergence Holdings had a gross margin of 63.92% 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.
Value Convergence Holdings Gross Margin % Related Terms
Value Convergence 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:00821 vs MS, GS, SCHW: Gross Margin % Comparison
For the Capital Markets subindustry, Value Convergence 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.
Value Convergence Holdings Gross Margin % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Value Convergence Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Value Convergence 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.
Value Convergence Holdings (HKSE:00821) has a Gross Margin % of 63.92% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Value Convergence Holdings and its competitors. This is 1376% above median its historical median of 4.33. According to the industry distribution chart, Value Convergence Holdings ranks #424 out of 622 companies in the Capital Markets industry, placing it in the top 68.2%.
Is Value Convergence Holdings' Gross Margin % too high?
Value Convergence Holdings' current Gross Margin % of 63.92% is 1376% above median its 10-year median of 4.33. The Capital Markets industry median Gross Margin % is 50.42. Value Convergence Holdings' value of 63.92% is 26.8% above this industry median. Based on the distribution chart, Value Convergence Holdings ranks #424 out of 622 companies in the Capital Markets industry, which is below the industry midpoint. Overall, Value Convergence Holdings has a GF Score™ of 17/100, reflecting its overall financial health beyond just this single metric.
How does Value Convergence Holdings' Gross Margin % compare to MS and GS?
According to the Capital Markets industry distribution chart, Value Convergence Holdings ranks #424 out of 622 companies for Gross Margin %. This places Value Convergence Holdings in the lower half of its industry. The industry median Gross Margin % is 50.42. Value Convergence Holdings' value of 63.92% is 26.8% above this benchmark. While the company's 10-year median is 4.33 vs. the industry median of 50.42, Value Convergence 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 a Capital Markets company?
The median Gross Margin % among Capital Markets companies is 50.42, based on 622 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. Value Convergence Holdings's current Gross Margin % of 63.92% is 26.8% 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 Value Convergence Holdings and its competitors. For the Capital Markets industry, the median Gross Margin % is 50.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Value Convergence Holdings's current Gross Margin % is 63.92%, which is 1376% above median its own 10-year median of 4.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Value Convergence Holdings stock overvalued right now?
Value Convergence Holdings (HKSE:00821) has a current Gross Margin % of 63.92%. The current Gross Margin % is 63.92%, which is 1376% above median its 10-year median of 4.33 and 26.8% above the Capital Markets industry median of 50.42. Value Convergence Holdings' overall GF Score™ is 17/100 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 Value Convergence Holdings (HKSE:00821), the current Gross Margin % is 63.92% 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.
Value Convergence Holdings Ltd is an investment holding company. Along with its subsidiaries, the company operates as a financial services group delivering financial services and products that fulfill various investment and wealth management needs of its clients. The Group's reportable operating segments include Brokerage and Financing; Corporate Finance and other Advisory services; Asset Management; Insurance Brokerage; Proprietary Trading; and Property Investment. The majority of its revenue derives from the Brokerage and Financing segment that engages in securities, futures, and options brokering and dealing, provision of margin financing and money lending, and placing and underwriting services. Geographically, the Group generates all its revenue from Hong Kong.
17GF Score
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