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Kinetix Systems HoldingsHKSE:08606 -5.36% Gross Margin % is 22.77% as of Dec. 2025, which is 16% above its 10-year median of 19.69. The stock has 4 warning signs investors should review. Among 2,686 Software companies, Kinetix Systems Holdings ranks worse than 79.64% on this metric.
Kinetix Systems Holdings (HKSE:08606) 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
Kinetix Systems Holdings had a gross margin of 22.77% 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.
Kinetix Systems Holdings Gross Margin % Related Terms
Kinetix Systems 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.
HKSE:08606 vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, Kinetix Systems 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.
Kinetix Systems Holdings Gross Margin % vs Software Industry
For the Software industry and Technology sector, Kinetix Systems Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Kinetix Systems 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.
Kinetix Systems Holdings (HKSE:08606) has a Gross Margin % of 22.77% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Kinetix Systems Holdings and its competitors. This is 16% above median its historical median of 19.69. Over the past decade, Kinetix Systems Holdings' Gross Margin % has ranged from 16.84 to 23.58. According to the industry distribution chart, Kinetix Systems Holdings ranks #2139 out of 2686 companies in the Software industry, placing it in the top 79.6%.
Is Kinetix Systems Holdings' Gross Margin % too high?
Kinetix Systems Holdings' current Gross Margin % of 22.77% is 16% above median its 10-year median of 19.69. Over the past 10 years, this metric has ranged from a low of 16.84 to a high of 23.58. The Software industry median Gross Margin % is 40.50. Kinetix Systems Holdings' value of 22.77% is 43.8% below this industry median. Based on the distribution chart, Kinetix Systems Holdings ranks #2139 out of 2686 companies in the Software industry, which is in the bottom quartile relative to peers.
How does Kinetix Systems Holdings' Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Kinetix Systems Holdings ranks #2139 out of 2686 companies for Gross Margin %. This places Kinetix Systems Holdings in the lower half of its industry. The industry median Gross Margin % is 40.50. Kinetix Systems Holdings' value of 22.77% is 43.8% below this benchmark. Historically, Kinetix Systems Holdings' own Gross Margin % has ranged from 16.84 to 23.58 over the past decade. While the company's 10-year median is 19.69 vs. the industry median of 40.50, Kinetix Systems 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 40.50, based on 2,686 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. Kinetix Systems Holdings's current Gross Margin % of 22.77% is 43.8% 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 Kinetix Systems Holdings 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. Kinetix Systems Holdings's current Gross Margin % is 22.77%, which is 16% above median its own 10-year median of 19.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kinetix Systems Holdings stock overvalued right now?
Based on GuruFocus' analysis, Kinetix Systems Holdings (HKSE:08606) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.10, compared to a current price of HK$0.05 — trading 47% below its estimated fair value. The current Gross Margin % is 22.77%, which is 16% above median its 10-year median of 19.69 and 43.8% below the Software industry median of 40.50. 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 Kinetix Systems Holdings (HKSE:08606), the current Gross Margin % is 22.77% 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.
Kinetix Systems Holdings Ltd is an Information Technology (IT) services provider. The company operates in three segments, which include the Provision of IT infrastructure solutions services, the Provision of IT development solutions services, and the Provision of IT maintenance and support services. The majority of its revenue comes from the IT infrastructure solutions services segment, which includes IT infrastructure, procurement of hardware and software, installation and testing & integration services, and system analysis & design, software development, and technology consultancy. Its geographical segments are Hong Kong, Macau, Singapore, and the United Kingdom, of which the vast majority of its revenue comes from Hong Kong.
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