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Shanghai Jiaoda Withub Information Industrial Co (HKSE:08205) 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
Shanghai Jiaoda Withub Information Industrial Co had a gross margin of 24.97% for the quarter that ended in Dec. 2025 => Competition eroding margins
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.
Shanghai Jiaoda Withub Information Industrial Co Gross Margin % Related Terms
Shanghai Jiaoda Withub Information Industrial Co 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.
Shanghai Jiaoda Withub Information Industrial Co Gross Margin % Chart
Shanghai Jiaoda Withub Information Industrial Co Annual Data
HKSE:08205 vs QH, SHOP, UBER: Gross Margin % Comparison
For the Software - Application subindustry, Shanghai Jiaoda Withub Information Industrial Co'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.
Shanghai Jiaoda Withub Information Industrial Co Gross Margin % vs Software Industry
* 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.
Shanghai Jiaoda Withub Information Industrial Co (HKSE:08205) has a Gross Margin % of 24.97% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Shanghai Jiaoda Withub Information Industrial Co and its competitors. This is near median its historical median of 24.02. Over the past decade, Shanghai Jiaoda Withub Information Industrial Co's Gross Margin % has ranged from 14.44 to 33.07. According to the industry distribution chart, Shanghai Jiaoda Withub Information Industrial Co ranks #2106 out of 2691 companies in the Software industry, placing it in the top 78.3%.
Is Shanghai Jiaoda Withub Information Industrial Co's Gross Margin % too high?
Shanghai Jiaoda Withub Information Industrial Co's current Gross Margin % of 24.97% is near median its 10-year median of 24.02. Over the past 10 years, this metric has ranged from a low of 14.44 to a high of 33.07. The Software industry median Gross Margin % is 40.67. Shanghai Jiaoda Withub Information Industrial Co's value of 24.97% is 38.6% below this industry median. Based on the distribution chart, Shanghai Jiaoda Withub Information Industrial Co ranks #2106 out of 2691 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Shanghai Jiaoda Withub Information Industrial Co has a GF Score™ of 55/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Shanghai Jiaoda Withub Information Industrial Co's Gross Margin % compare to QH and SHOP?
According to the Software industry distribution chart, Shanghai Jiaoda Withub Information Industrial Co ranks #2106 out of 2691 companies for Gross Margin %. This places Shanghai Jiaoda Withub Information Industrial Co in the lower half of its industry. The industry median Gross Margin % is 40.67. Shanghai Jiaoda Withub Information Industrial Co's value of 24.97% is 38.6% below this benchmark. Historically, Shanghai Jiaoda Withub Information Industrial Co's own Gross Margin % has ranged from 14.44 to 33.07 over the past decade. While the company's 10-year median is 24.02 vs. the industry median of 40.67, Shanghai Jiaoda Withub Information Industrial Co 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 40.67, based on 2,691 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. Shanghai Jiaoda Withub Information Industrial Co's current Gross Margin % of 24.97% is 38.6% 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 Shanghai Jiaoda Withub Information Industrial Co and its competitors. For the Software industry, the median Gross Margin % is 40.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shanghai Jiaoda Withub Information Industrial Co's current Gross Margin % is 24.97%, which is near median its own 10-year median of 24.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanghai Jiaoda Withub Information Industrial Co stock overvalued right now?
Based on GuruFocus' analysis, Shanghai Jiaoda Withub Information Industrial Co (HKSE:08205) is currently considered Fairly Valued. The stock's GF Value™ is HK$0.41, compared to a current price of HK$0.39 — trading 4.9% below its estimated fair value. The current Gross Margin % is 24.97%, which is near median its 10-year median of 24.02 and 38.6% below the Software industry median of 40.67. Shanghai Jiaoda Withub Information Industrial Co's overall GF Score™ is 55/100 with 2 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 Shanghai Jiaoda Withub Information Industrial Co (HKSE:08205), the current Gross Margin % is 24.97% 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 Shanghai Jiaoda Withub Information Industrial Co (HKSE:08205) Overvalued in 2026?
Based on GuruFocus' analysis, Shanghai Jiaoda Withub Information Industrial Co stock appears to be undervalued.
The current stock price of HK$0.39 is trading 4.9% below its estimated GF Value™ of HK$0.41.
GuruFocus considers Shanghai Jiaoda Withub Information Industrial Co to be Fairly Valued.
Key valuation signals for HKSE:08205:
Gross Margin %: 24.97% (near median its 10-year median of 24.02)
GF Value™: HK$0.41 vs. price of HK$0.39 (4.9% below fair value)
Industry Position: 38.6% below the Software median (#2106 of 2691)
No single metric tells the full story. See the HKSE:08205 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shanghai Jiaoda Withub Information Industrial Co Ltd is engaged in computer network and internet security integration, application software development, building intelligent system integration, and information technology products sales agents. It operates through two segments that include Business application projects and application software and Sales Products. The Business Application Solutions generate maximum revenue for the company. The Business Application Project and Application Software segment is engaged in the development and provision of business application project services, including business solutions, application software, installation & maintenance services, and data security products. It offers its services only to the People's Republic of China region.
55GF Score
Get the complete analysis for HKSE:08205
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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