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Microware GroupHKSE:01985 +3.13%60 Gross Margin % is 15.24% as of Mar. 2026, which is 33% above its 10-year median of 11.46. GuruFocus rates HKSE:01985 with a GF Score™ of 60/100 and a GF Value™ of HK$1.15 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 2,690 Software companies, Microware Group ranks worse than 88.7% on this metric.
Microware Group (HKSE:01985) 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
Microware Group had a gross margin of 15.24% for the quarter that ended in Mar. 2026 => 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.
Microware Group Gross Margin % Related Terms
Microware Group Gross Margin % Historical Data
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The historical data trend for Microware Group'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:01985 vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, Microware Group'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.
Microware Group Gross Margin % vs Software Industry
For the Software industry and Technology sector, Microware Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Microware Group'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.
Microware Group (HKSE:01985) has a Gross Margin % of 15.24% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Microware Group and its competitors. This is 33% above median its historical median of 11.46. Over the past decade, Microware Group's Gross Margin % has ranged from 9.93 to 13.25. According to the industry distribution chart, Microware Group ranks #2386 out of 2690 companies in the Software industry, placing it in the top 88.7%.
Is Microware Group's Gross Margin % too high?
Microware Group's current Gross Margin % of 15.24% is 33% above median its 10-year median of 11.46. Over the past 10 years, this metric has ranged from a low of 9.93 to a high of 13.25. The Software industry median Gross Margin % is 40.50. Microware Group's value of 15.24% is 62.4% below this industry median. Based on the distribution chart, Microware Group ranks #2386 out of 2690 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Microware Group has a GF Score™ of 60/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Microware Group's Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Microware Group ranks #2386 out of 2690 companies for Gross Margin %. This places Microware Group in the lower half of its industry. The industry median Gross Margin % is 40.50. Microware Group's value of 15.24% is 62.4% below this benchmark. Historically, Microware Group's own Gross Margin % has ranged from 9.93 to 13.25 over the past decade. While the company's 10-year median is 11.46 vs. the industry median of 40.50, Microware Group 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 Software company?
The median Gross Margin % among Software companies is 40.50, 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. Microware Group's current Gross Margin % of 15.24% is 62.4% 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 Microware Group and its competitors. For the Software industry, the median Gross Margin % is 40.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Microware Group's current Gross Margin % is 15.24%, which is 33% above median its own 10-year median of 11.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Microware Group stock overvalued right now?
Based on GuruFocus' analysis, Microware Group (HKSE:01985) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$1.15, compared to a current price of HK$2.97 — trading 158.3% above its estimated fair value. The current Gross Margin % is 15.24%, which is 33% above median its 10-year median of 11.46 and 62.4% below the Software industry median of 40.50. Microware Group's overall GF Score™ is 60/100 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 Microware Group (HKSE:01985), the current Gross Margin % is 15.24% as of Mar. 2026. 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 Microware Group (HKSE:01985) Overvalued in 2026?
Based on GuruFocus' analysis, Microware Group stock appears to be overvalued.
The current stock price of HK$2.97 is trading 158.3% above its estimated GF Value™ of HK$1.15.
GuruFocus considers Microware Group to be Significantly Overvalued.
Key valuation signals for HKSE:01985:
Gross Margin %: 15.24% (33% above median its 10-year median of 11.46)
GF Value™: HK$1.15 vs. price of HK$2.97 (158.3% above fair value)
Industry Position: 62.4% below the Software median (#2386 of 2690)
No single metric tells the full story. See the HKSE:01985 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Microware Group Ltd is an investment holding company. The company is principally engaged in the provision of IT infrastructure solutions services and IT managed services in Hong Kong. The group strives to provide one-stop IT experience that begins with consultation and advice; semiconductor products, hardware and/or software procurement; implementation; and management and maintenance of the IT infrastructure solutions. Its operating segment includes IT infrastructure solution services business; and IT managed services business of which the majority of revenue is derived from IT infrastructure solution services business. Its revenue is derived from its operation in Hong Kong.
60GF Score
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