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HKSE:01740's Gross Margin % is ranked worse than 98.83% of 942
companies
in the Media - Diversified industry
Industry Median: 38.99
vs HKSE:01740: -29.52
Values Cultural Investment had a gross margin of -82.03% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
Values Cultural Investment (HKSE:01740) 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
Values Cultural Investment had a gross margin of -82.03% 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.
Values Cultural Investment Gross Margin % Related Terms
Values Cultural Investment 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:01740 vs NFLX, DIS, WBD: Gross Margin % Comparison
For the Entertainment subindustry, Values Cultural Investment'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.
Values Cultural Investment Gross Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Values Cultural Investment's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Values Cultural Investment'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.
Values Cultural Investment (HKSE:01740) has a Gross Margin % of -82.03% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Values Cultural Investment and its competitors. According to the industry distribution chart, Values Cultural Investment ranks #931 out of 942 companies in the Media - Diversified industry, placing it in the top 98.8%.
Is Values Cultural Investment's Gross Margin % too high?
Values Cultural Investment's current Gross Margin % is -82.03%. Based on the distribution chart, Values Cultural Investment ranks #931 out of 942 companies in the Media - Diversified industry, which is in the bottom quartile relative to peers. Overall, Values Cultural Investment has a GF Score™ of 48/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Values Cultural Investment's Gross Margin % compare to NFLX and DIS?
According to the Media - Diversified industry distribution chart, Values Cultural Investment ranks #931 out of 942 companies for Gross Margin %. This places Values Cultural Investment in the lower half of its industry. The industry median Gross Margin % is 38.99. 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 942 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. 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 Values Cultural Investment 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. Values Cultural Investment's current Gross Margin % is -82.03%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Values Cultural Investment stock overvalued right now?
Based on GuruFocus' analysis, Values Cultural Investment (HKSE:01740) is currently considered Fairly Valued. The stock's GF Value™ is HK$0.17, compared to a current price of HK$0.16 — trading 4.7% below its estimated fair value. The current Gross Margin % is -82.03%. Values Cultural Investment's overall GF Score™ is 48/100 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 Values Cultural Investment (HKSE:01740), the current Gross Margin % is -82.03% 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 Values Cultural Investment (HKSE:01740) Overvalued in 2026?
Based on GuruFocus' analysis, Values Cultural Investment stock appears to be undervalued.
The current stock price of HK$0.16 is trading 4.7% below its estimated GF Value™ of HK$0.17.
GuruFocus considers Values Cultural Investment to be Fairly Valued.
Key valuation signals for HKSE:01740:
Gross Margin %: -82.03%
GF Value™: HK$0.17 vs. price of HK$0.16 (4.7% below fair value)
No single metric tells the full story. See the HKSE:01740 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Values Cultural Investment Ltd is an investment holding company. Along with its subsidiaries, it is principally engaged in the business of licensing broadcasting rights of TV or web series; investments in TV or web series as a non-executive producer; and acting as a distribution agent of TV series. Geographically, all of the companies revenue is generated from customers located in Mainland China.
48GF Score
Get the complete analysis for HKSE:01740
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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