What is Lianhe Sowell International Group Gross Margin %?
Lianhe Sowell International GroupLHSW -10.37%20 Gross Margin % is 25.26% as of Sep. 2025, which is 3% below its 10-year median of 25.94. GuruFocus rates LHSW with a GF Score™ of 20/100. The stock has 5 warning signs investors should review. Among 2,685 Software companies, Lianhe Sowell International Group ranks worse than 66.7% on this metric.
Lianhe Sowell International Group (NAS:LHSW) 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
Lianhe Sowell International Group had a gross margin of 25.26% for the quarter that ended in Sep. 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.
Lianhe Sowell International Group Gross Margin % Related Terms
Lianhe Sowell International Group 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.
Lianhe Sowell International Group Gross Margin % Chart
Lianhe Sowell International Group Annual Data
Trend
Mar22
Mar23
Mar24
Mar25
Gross Margin %
50.05
25.67
21.75
26.20
Lianhe Sowell International Group Semi-Annual Data
LHSW vs SDCH, DTSS, TGHL: Gross Margin % Comparison
For the Software - Infrastructure subindustry, Lianhe Sowell International Group'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.
Lianhe Sowell International Group Gross Margin % vs Software Industry
For the Software industry and Technology sector, Lianhe Sowell International Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Lianhe Sowell International Group'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.
Lianhe Sowell International Group (LHSW) has a Gross Margin % of 25.26% as of Sep. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Lianhe Sowell International Group and its competitors. This is near median its historical median of 25.94. Over the past decade, Lianhe Sowell International Group's Gross Margin % has ranged from 21.75 to 50.05. According to the industry distribution chart, Lianhe Sowell International Group ranks #1791 out of 2685 companies in the Software industry, placing it in the top 66.7%.
Is Lianhe Sowell International Group's Gross Margin % too high?
Lianhe Sowell International Group's current Gross Margin % of 25.26% is near median its 10-year median of 25.94. Over the past 10 years, this metric has ranged from a low of 21.75 to a high of 50.05. The Software industry median Gross Margin % is 40.45. Lianhe Sowell International Group's value of 25.26% is 37.6% below this industry median. Based on the distribution chart, Lianhe Sowell International Group ranks #1791 out of 2685 companies in the Software industry, which is below the industry midpoint. Overall, Lianhe Sowell International Group has a GF Score™ of 20/100, reflecting its overall financial health beyond just this single metric.
How does Lianhe Sowell International Group's Gross Margin % compare to SDCH and DTSS?
According to the Software industry distribution chart, Lianhe Sowell International Group ranks #1791 out of 2685 companies for Gross Margin %. This places Lianhe Sowell International Group in the lower half of its industry. The industry median Gross Margin % is 40.45. Lianhe Sowell International Group's value of 25.26% is 37.6% below this benchmark. Historically, Lianhe Sowell International Group's own Gross Margin % has ranged from 21.75 to 50.05 over the past decade. While the company's 10-year median is 25.94 vs. the industry median of 40.45, Lianhe Sowell International Group 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. Lianhe Sowell International Group's current Gross Margin % of 25.26% is 37.6% 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 Lianhe Sowell International Group 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. Lianhe Sowell International Group's current Gross Margin % is 25.26%, which is near median its own 10-year median of 25.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lianhe Sowell International Group stock overvalued right now?
Lianhe Sowell International Group (LHSW) has a current Gross Margin % of 25.26%. The current Gross Margin % is 25.26%, which is near median its 10-year median of 25.94 and 37.6% below the Software industry median of 40.45. Lianhe Sowell International Group's overall GF Score™ is 20/100 with 5 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 Lianhe Sowell International Group (LHSW), the current Gross Margin % is 25.26% as of Sep. 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.
Lianhe Sowell International Group Business Description
Lianhe Sowell International Group Ltd is a holding company and operates its business through its subsidiary. It is a provider of machine vision products and solutions in China that invent and integrate technologies and solutions that address some of the critical manufacturing and distribution challenges, such as precision and accuracy required in manufacturing of electronic products. The company categorize machine vision products in four categories based on their application settings: Industrial Machine Vision, Artificial Intelligence (Face Recognition and AI Behavior Analysis), Intelligent Weak Current (Building Intelligence and Intelligent Transportation) and Electronic Customs Clearance.
20GF Score
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