Kingdee International Software Group Co (OTCPK:KGDEF) 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
Kingdee International Software Group Co had a gross margin of 68.41% 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.
Kingdee International Software Group Co Gross Margin % Related Terms
Kingdee International Software Group 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.
Kingdee International Software Group Co Gross Margin % Chart
Kingdee International Software Group Co Annual Data
KGDEF vs CRM, SHOP, UBER: Gross Margin % Comparison
For the Software - Application subindustry, Kingdee International Software Group 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.
Kingdee International Software Group 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.
Kingdee International Software Group Co (KGDEF) has a Gross Margin % of 68.41% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Kingdee International Software Group Co and its competitors. This is near median its historical median of 66.48. Over the past decade, Kingdee International Software Group Co's Gross Margin % has ranged from 61.61 to 81.69. According to the industry distribution chart, Kingdee International Software Group Co ranks #614 out of 2685 companies in the Software industry, placing it in the top 22.9%.
Is Kingdee International Software Group Co's Gross Margin % too high?
Kingdee International Software Group Co's current Gross Margin % of 68.41% is near median its 10-year median of 66.48. Over the past 10 years, this metric has ranged from a low of 61.61 to a high of 81.69. The Software industry median Gross Margin % is 40.45. Kingdee International Software Group Co's value of 68.41% is 69.1% above this industry median. Based on the distribution chart, Kingdee International Software Group Co ranks #614 out of 2685 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Kingdee International Software Group Co has a GF Score™ of 69/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Kingdee International Software Group Co's Gross Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, Kingdee International Software Group Co ranks #614 out of 2685 companies for Gross Margin %. This places Kingdee International Software Group Co in the top 23% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.45. Kingdee International Software Group Co's value of 68.41% is 69.1% above this benchmark. Historically, Kingdee International Software Group Co's own Gross Margin % has ranged from 61.61 to 81.69 over the past decade. While the company's 10-year median is 66.48 vs. the industry median of 40.45, Kingdee International Software Group Co 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 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. Kingdee International Software Group Co's current Gross Margin % of 68.41% is 69.1% 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 Kingdee International Software Group Co 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. Kingdee International Software Group Co's current Gross Margin % is 68.41%, which is near median its own 10-year median of 66.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kingdee International Software Group Co stock overvalued right now?
Based on GuruFocus' analysis, Kingdee International Software Group Co (KGDEF) is currently considered Significantly Undervalued. The stock's GF Value™ is $2.98, compared to a current price of $0.75 — trading 74.9% below its estimated fair value. The current Gross Margin % is 68.41%, which is near median its 10-year median of 66.48 and 69.1% above the Software industry median of 40.45. Kingdee International Software Group Co's overall GF Score™ is 69/100 with 3 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 Kingdee International Software Group Co (KGDEF), the current Gross Margin % is 68.41% 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 Kingdee International Software Group Co (KGDEF) Overvalued in 2026?
Based on GuruFocus' analysis, Kingdee International Software Group Co stock appears to be undervalued.
The current stock price of $0.75 is trading 74.9% below its estimated GF Value™ of $2.98.
GuruFocus considers Kingdee International Software Group Co to be Significantly Undervalued.
Key valuation signals for KGDEF:
Gross Margin %: 68.41% (near median its 10-year median of 66.48)
GF Value™: $2.98 vs. price of $0.75 (74.9% below fair value)
Industry Position: 69.1% above the Software median (#614 of 2685)
No single metric tells the full story. See the KGDEF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kingdee International Software Group Co Business Description
Kingdee International Software Group Co Ltd is engaged in cloud services, including enterprise cloud services, small & micro business finance cloud services, and industry cloud services; and enterprise resource planning business, including development and sales of software products. It has two operating segments: Subscription and software- Including subscriptions and sales of software, and Implementation, consulting, maintenance services, and others - including provision of subscription and software implementation services, software solution consulting, maintenance, upgrade, and other supporting services, and others.
69GF Score
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