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Ruihe Data Technology Holdings (HKSE:03680) 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
Ruihe Data Technology Holdings had a gross margin of 8.26% 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.
Ruihe Data Technology Holdings Gross Margin % Related Terms
Ruihe Data Technology 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.
Ruihe Data Technology Holdings Gross Margin % Chart
HKSE:03680 vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, Ruihe Data Technology 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.
Ruihe Data Technology Holdings Gross Margin % vs Software Industry
For the Software industry and Technology sector, Ruihe Data Technology Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ruihe Data Technology 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.
Ruihe Data Technology Holdings (HKSE:03680) has a Gross Margin % of 8.26% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Ruihe Data Technology Holdings and its competitors. This is 71% below median its historical median of 28.10. Over the past decade, Ruihe Data Technology Holdings' Gross Margin % has ranged from 8.00 to 35.60. According to the industry distribution chart, Ruihe Data Technology Holdings ranks #2506 out of 2689 companies in the Software industry, placing it in the top 93.2%.
Is Ruihe Data Technology Holdings' Gross Margin % too high?
Ruihe Data Technology Holdings' current Gross Margin % of 8.26% is 71% below median its 10-year median of 28.10. Over the past 10 years, this metric has ranged from a low of 8.00 to a high of 35.60. The Software industry median Gross Margin % is 40.54. Ruihe Data Technology Holdings' value of 8.26% is 79.6% below this industry median. Based on the distribution chart, Ruihe Data Technology Holdings ranks #2506 out of 2689 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Ruihe Data Technology Holdings has a GF Score™ of 44/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ruihe Data Technology Holdings' Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Ruihe Data Technology Holdings ranks #2506 out of 2689 companies for Gross Margin %. This places Ruihe Data Technology Holdings in the lower half of its industry. The industry median Gross Margin % is 40.54. Ruihe Data Technology Holdings' value of 8.26% is 79.6% below this benchmark. Historically, Ruihe Data Technology Holdings' own Gross Margin % has ranged from 8.00 to 35.60 over the past decade. While the company's 10-year median is 28.10 vs. the industry median of 40.54, Ruihe Data Technology Holdings 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 40.54, based on 2,689 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. Ruihe Data Technology Holdings's current Gross Margin % of 8.26% is 79.6% 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 Ruihe Data Technology 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. Ruihe Data Technology Holdings's current Gross Margin % is 8.26%, which is 71% below median its own 10-year median of 28.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ruihe Data Technology Holdings stock overvalued right now?
Based on GuruFocus' analysis, Ruihe Data Technology Holdings (HKSE:03680) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.66, compared to a current price of HK$2.31 — trading 250% above its estimated fair value. The current Gross Margin % is 8.26%, which is 71% below median its 10-year median of 28.10 and 79.6% below the Software industry median of 40.54. Ruihe Data Technology Holdings' overall GF Score™ is 44/100 with 7 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 Ruihe Data Technology Holdings (HKSE:03680), the current Gross Margin % is 8.26% 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 Ruihe Data Technology Holdings (HKSE:03680) Overvalued in 2026?
Based on GuruFocus' analysis, Ruihe Data Technology Holdings stock appears to be overvalued.
The current stock price of HK$2.31 is trading 250% above its estimated GF Value™ of HK$0.66.
GuruFocus considers Ruihe Data Technology Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:03680:
Gross Margin %: 8.26% (71% below median its 10-year median of 28.10)
GF Value™: HK$0.66 vs. price of HK$2.31 (250% above fair value)
Industry Position: 79.6% below the Software median (#2506 of 2689)
No single metric tells the full story. See the HKSE:03680 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ruihe Data Technology Holdings Business Description
Ruihe Data Technology Holdings Ltd is an enterprise in the field of data intelligence and marketing technology, providing big data, AI, and digital marketing solutions and professional consulting services to financial institutions and other enterprises and helping all kinds of enterprises and organizations to fully realize the value of data and accelerate their digital transformation driven by data. The core businesses of the Group are the provision of data solutions, sales of hardware and software, and related services as an integrated service, as well as IT maintenance and support services. Its segments include Integrated data technology services; Trading of commodities; and Others, where Integrated data technology services derives maximum revenue.
44GF Score
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