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Kantone HoldingsHKSE:01059 52 Gross Margin % is 60.24% as of Dec. 2025, which is 5% above its 10-year median of 57.45. GuruFocus rates HKSE:01059 with a GF Score™ of 52/100 and a GF Value™ of HK$0.25 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 2,690 Software companies, Kantone Holdings ranks better than 71.38% on this metric.
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
Kantone Holdings had a gross margin of 60.24% 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.
Kantone Holdings Gross Margin % Related Terms
Kantone Holdings Gross Margin % Historical Data
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The historical data trend for Kantone 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:01059 vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, Kantone 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.
Kantone Holdings Gross Margin % vs Software Industry
For the Software industry and Technology sector, Kantone Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Kantone 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.
Kantone Holdings (HKSE:01059) has a Gross Margin % of 60.24% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Kantone Holdings and its competitors. This is near median its historical median of 57.45. Over the past decade, Kantone Holdings' Gross Margin % has ranged from 34.25 to 61.41. According to the industry distribution chart, Kantone Holdings ranks #770 out of 2690 companies in the Software industry, placing it in the top 28.6%.
Is Kantone Holdings' Gross Margin % too high?
Kantone Holdings' current Gross Margin % of 60.24% is near median its 10-year median of 57.45. Over the past 10 years, this metric has ranged from a low of 34.25 to a high of 61.41. The Software industry median Gross Margin % is 40.54. Kantone Holdings' value of 60.24% is 48.6% above this industry median. Based on the distribution chart, Kantone Holdings ranks #770 out of 2690 companies in the Software industry, which is above the industry midpoint. Overall, Kantone Holdings has a GF Score™ of 52/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kantone Holdings' Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Kantone Holdings ranks #770 out of 2690 companies for Gross Margin %. This puts Kantone Holdings in the upper half of its industry. The industry median Gross Margin % is 40.54. Kantone Holdings' value of 60.24% is 48.6% above this benchmark. Historically, Kantone Holdings' own Gross Margin % has ranged from 34.25 to 61.41 over the past decade. While the company's 10-year median is 57.45 vs. the industry median of 40.54, Kantone 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 Software company?
The median Gross Margin % among Software companies is 40.54, based on 2,690 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. Kantone Holdings's current Gross Margin % of 60.24% is 48.6% 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 Kantone Holdings and its competitors. For the Software industry, the median Gross Margin % is 40.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kantone Holdings's current Gross Margin % is 60.24%, which is near median its own 10-year median of 57.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kantone Holdings stock overvalued right now?
Based on GuruFocus' analysis, Kantone Holdings (HKSE:01059) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.25, compared to a current price of HK$0.37 — trading 46% above its estimated fair value. The current Gross Margin % is 60.24%, which is near median its 10-year median of 57.45 and 48.6% above the Software industry median of 40.54. Kantone Holdings' overall GF Score™ is 52/100 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 Kantone Holdings (HKSE:01059), the current Gross Margin % is 60.24% 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 Kantone Holdings (HKSE:01059) Overvalued in 2026?
Based on GuruFocus' analysis, Kantone Holdings stock appears to be overvalued.
The current stock price of HK$0.37 is trading 46% above its estimated GF Value™ of HK$0.25.
GuruFocus considers Kantone Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:01059:
Gross Margin %: 60.24% (near median its 10-year median of 57.45)
GF Value™: HK$0.25 vs. price of HK$0.37 (46% above fair value)
Industry Position: 48.6% above the Software median (#770 of 2690)
No single metric tells the full story. See the HKSE:01059 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kantone Holdings Ltd is an investment holding company. The company's operating segment includes Sales of cultural products; Technology: System sales including software licensing and services and Technology: Leasing of system products. It generates maximum revenue from the Technology: System sales including software licensing and services segment. Geographically, it derives a majority of its revenue from Europe (UK and Germany).
52GF Score
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