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STAR CM HoldingsHKSE:06698 -4.14%70 Gross Margin % is 60.56% as of Dec. 2025, which is 88% above its 10-year median of 32.18. GuruFocus rates HKSE:06698 with a GF Score™ of 70/100 and a GF Value™ of HK$1.81 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 944 Media - Diversified companies, STAR CM Holdings ranks better than 63.98% on this metric.
The historical rank and industry rank for STAR CM Holdings's Gross Margin % or its related term are showing as below:
HKSE:06698'
s Gross Margin % Range Over the Past 10 Years
Min: -13.91 Med: 32.18 Max: 52.37
Current: 48.87
During the past 7 years, the highestGross Margin % of STAR CM Holdings was 52.37%. The lowest was -13.91%. And the median was 32.18%.
HKSE:06698's Gross Margin % is ranked better than 63.98% of 944
companies
in the Media - Diversified industry
Industry Median: 39.065
vs HKSE:06698: 48.87
STAR CM Holdings had a gross margin of 60.56% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for STAR CM Holdings was 0.00% per year.
STAR CM Holdings (HKSE:06698) 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
STAR CM Holdings had a gross margin of 60.56% 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.
STAR CM Holdings Gross Margin % Related Terms
STAR CM Holdings Gross Margin % Historical Data
* Premium members only.
The historical data trend for STAR CM 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:06698 vs NFLX, DIS, WBD: Gross Margin % Comparison
For the Entertainment subindustry, STAR CM 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.
STAR CM Holdings Gross Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, STAR CM Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where STAR CM 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.
STAR CM Holdings (HKSE:06698) has a Gross Margin % of 60.56% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on STAR CM Holdings and its competitors. This is 88% above median its historical median of 32.18. According to the industry distribution chart, STAR CM Holdings ranks #340 out of 944 companies in the Media - Diversified industry, placing it in the top 36%.
Is STAR CM Holdings' Gross Margin % too high?
STAR CM Holdings' current Gross Margin % of 60.56% is 88% above median its 10-year median of 32.18. The Media - Diversified industry median Gross Margin % is 39.07. STAR CM Holdings' value of 60.56% is 55% above this industry median. Based on the distribution chart, STAR CM Holdings ranks #340 out of 944 companies in the Media - Diversified industry, which is above the industry midpoint. Overall, STAR CM Holdings has a GF Score™ of 70/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does STAR CM Holdings' Gross Margin % compare to NFLX and DIS?
According to the Media - Diversified industry distribution chart, STAR CM Holdings ranks #340 out of 944 companies for Gross Margin %. This puts STAR CM Holdings in the upper half of its industry. The industry median Gross Margin % is 39.07. STAR CM Holdings' value of 60.56% is 55% above this benchmark. While the company's 10-year median is 32.18 vs. the industry median of 39.07, STAR CM 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 Media - Diversified company?
The median Gross Margin % among Media - Diversified companies is 39.07, based on 944 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. STAR CM Holdings's current Gross Margin % of 60.56% is 55% 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 STAR CM Holdings and its competitors. For the Media - Diversified industry, the median Gross Margin % is 39.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. STAR CM Holdings's current Gross Margin % is 60.56%, which is 88% above median its own 10-year median of 32.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is STAR CM Holdings stock overvalued right now?
Based on GuruFocus' analysis, STAR CM Holdings (HKSE:06698) is currently considered Possible Value Trap. The stock's GF Value™ is HK$1.81, compared to a current price of HK$0.81 — trading 55.2% below its estimated fair value. The current Gross Margin % is 60.56%, which is 88% above median its 10-year median of 32.18 and 55% above the Media - Diversified industry median of 39.07. STAR CM Holdings' overall GF Score™ is 70/100 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 STAR CM Holdings (HKSE:06698), the current Gross Margin % is 60.56% 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 STAR CM Holdings (HKSE:06698) Overvalued in 2026?
Based on GuruFocus' analysis, STAR CM Holdings stock appears to be undervalued.
The current stock price of HK$0.81 is trading 55.2% below its estimated GF Value™ of HK$1.81.
GuruFocus considers STAR CM Holdings to be Possible Value Trap.
Key valuation signals for HKSE:06698:
Gross Margin %: 60.56% (88% above median its 10-year median of 32.18)
GF Value™: HK$1.81 vs. price of HK$0.81 (55.2% below fair value)
Industry Position: 55% above the Media - Diversified median (#340 of 944)
No single metric tells the full story. See the HKSE:06698 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
STAR CM Holdings Ltd is an investment holding company. The company's subsidiaries are principally involved in variety program intellectual property (IP) production, operation and licensing, music IP operation and licensing, drama series and film IP operation and licensing and other IP-related business. The company owns a diverse and wide range of popular variety show IPs, including music programs, dance programs, talent shows, talk shows, outdoor/cultural programs, and other variety shows. Geographically, the company derives the majority of revenue from Mainland China, followed by the USA, the United Kingdom, Japan, Hong Kong, Macau, and Other regions.
70GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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