HeartCore EnterprisesHTCR +9.27%49 Gross Margin % is 5.94% as of Mar. 2026, which is 84% below its 10-year median of 38.00. GuruFocus rates HTCR with a GF Score™ of 49/100 and a GF Value™ of $8.64 (Possible Value Trap). The stock has 8 warning signs investors should review. Among 2,685 Software companies, HeartCore Enterprises ranks worse than 51.02% on this metric.
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
HeartCore Enterprises had a gross margin of 5.94% 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.
HeartCore Enterprises Gross Margin % Related Terms
HeartCore Enterprises Gross Margin % Historical Data
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The historical data trend for HeartCore Enterprises'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.
HTCR vs ZENVF, MFON, GDLG: Gross Margin % Comparison
For the Software - Application subindustry, HeartCore Enterprises'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.
HeartCore Enterprises Gross Margin % vs Software Industry
For the Software industry and Technology sector, HeartCore Enterprises's Gross Margin % distribution charts can be found below:
* The bar in red indicates where HeartCore Enterprises'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.
HeartCore Enterprises (HTCR) has a Gross Margin % of 5.94% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on HeartCore Enterprises and its competitors. This is 84% below median its historical median of 38.00. Over the past decade, HeartCore Enterprises' Gross Margin % has ranged from 35.13 to 64.87. According to the industry distribution chart, HeartCore Enterprises ranks #1370 out of 2685 companies in the Software industry, placing it in the top 51%.
Is HeartCore Enterprises' Gross Margin % too high?
HeartCore Enterprises' current Gross Margin % of 5.94% is 84% below median its 10-year median of 38.00. Over the past 10 years, this metric has ranged from a low of 35.13 to a high of 64.87. The Software industry median Gross Margin % is 40.45. HeartCore Enterprises' value of 5.94% is 85.3% below this industry median. Based on the distribution chart, HeartCore Enterprises ranks #1370 out of 2685 companies in the Software industry, which is below the industry midpoint. Overall, HeartCore Enterprises has a GF Score™ of 49/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does HeartCore Enterprises' Gross Margin % compare to ZENVF and MFON?
According to the Software industry distribution chart, HeartCore Enterprises ranks #1370 out of 2685 companies for Gross Margin %. This places HeartCore Enterprises in the lower half of its industry. The industry median Gross Margin % is 40.45. HeartCore Enterprises' value of 5.94% is 85.3% below this benchmark. Historically, HeartCore Enterprises' own Gross Margin % has ranged from 35.13 to 64.87 over the past decade. While the company's 10-year median is 38.00 vs. the industry median of 40.45, HeartCore Enterprises 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 40.45, based on 2,685 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. HeartCore Enterprises's current Gross Margin % of 5.94% is 85.3% 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 HeartCore Enterprises and its competitors. For the Software industry, the median Gross Margin % is 40.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HeartCore Enterprises's current Gross Margin % is 5.94%, which is 84% below median its own 10-year median of 38.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HeartCore Enterprises stock overvalued right now?
Based on GuruFocus' analysis, HeartCore Enterprises (HTCR) is currently considered Possible Value Trap. The stock's GF Value™ is $8.64, compared to a current price of $3.23 — trading 62.6% below its estimated fair value. The current Gross Margin % is 5.94%, which is 84% below median its 10-year median of 38.00 and 85.3% below the Software industry median of 40.45. HeartCore Enterprises' overall GF Score™ is 49/100 with 8 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 HeartCore Enterprises (HTCR), the current Gross Margin % is 5.94% 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 HeartCore Enterprises (HTCR) Overvalued in 2026?
Based on GuruFocus' analysis, HeartCore Enterprises stock appears to be undervalued.
The current stock price of $3.23 is trading 62.6% below its estimated GF Value™ of $8.64.
GuruFocus considers HeartCore Enterprises to be Possible Value Trap.
Key valuation signals for HTCR:
Gross Margin %: 5.94% (84% below median its 10-year median of 38.00)
GF Value™: $8.64 vs. price of $3.23 (62.6% below fair value)
Industry Position: 85.3% below the Software median (#1370 of 2685)
No single metric tells the full story. See the HTCR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HeartCore Enterprises Inc is a software development company providing solutions for digital transformation (DX). It develops, sells, and maintains CMS and CXM platforms using digital marketing technology, RPA, process mining solutions, myInvenio and Apromore, task mining solution CONTROLIO, and 3D-VR services including Matterport and VR360. The company also provides management consulting, education, services, and support to help customers succeed with the CXM Platform. It operates through two business units, the CX division for customer experience management and the DX division for digital transformation, which provides robotics process automation, process mining, and task mining. Its products include VR360, myInvenio, Apromore, and others, with maximum revenue from the United States.
49GF Score
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