Winking StudiosLSE:WKS 48 Gross Margin % is 29.43% as of Dec. 2025, which is 5% below its 10-year median of 30.83. GuruFocus rates LSE:WKS with a GF Score™ of 48/100. The stock has 5 warning signs investors should review. Among 497 Interactive Media companies, Winking Studios ranks worse than 83.5% 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
Winking Studios had a gross margin of 29.43% 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.
Winking Studios Gross Margin % Related Terms
Winking Studios Gross Margin % Historical Data
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The historical data trend for Winking Studios'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.
LSE:WKS vs NTES, EA, TTWO: Gross Margin % Comparison
For the Electronic Gaming & Multimedia subindustry, Winking Studios'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.
Winking Studios Gross Margin % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Winking Studios's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Winking Studios'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.
Winking Studios (LSE:WKS) has a Gross Margin % of 29.43% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Winking Studios and its competitors. This is near median its historical median of 30.83. Over the past decade, Winking Studios' Gross Margin % has ranged from 26.32 to 38.61. According to the industry distribution chart, Winking Studios ranks #415 out of 497 companies in the Interactive Media industry, placing it in the top 83.5%.
Is Winking Studios' Gross Margin % too high?
Winking Studios' current Gross Margin % of 29.43% is near median its 10-year median of 30.83. Over the past 10 years, this metric has ranged from a low of 26.32 to a high of 38.61. The Interactive Media industry median Gross Margin % is 62.58. Winking Studios' value of 29.43% is 53% below this industry median. Based on the distribution chart, Winking Studios ranks #415 out of 497 companies in the Interactive Media industry, which is in the bottom quartile relative to peers. Overall, Winking Studios has a GF Score™ of 48/100, reflecting its overall financial health beyond just this single metric.
How does Winking Studios' Gross Margin % compare to NTES and EA?
According to the Interactive Media industry distribution chart, Winking Studios ranks #415 out of 497 companies for Gross Margin %. This places Winking Studios in the lower half of its industry. The industry median Gross Margin % is 62.58. Winking Studios' value of 29.43% is 53% below this benchmark. Historically, Winking Studios' own Gross Margin % has ranged from 26.32 to 38.61 over the past decade. While the company's 10-year median is 30.83 vs. the industry median of 62.58, Winking Studios 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 an Interactive Media company?
The median Gross Margin % among Interactive Media companies is 62.58, based on 497 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. Winking Studios's current Gross Margin % of 29.43% is 53% 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 Winking Studios and its competitors. For the Interactive Media industry, the median Gross Margin % is 62.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Winking Studios's current Gross Margin % is 29.43%, which is near median its own 10-year median of 30.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Winking Studios stock overvalued right now?
Winking Studios (LSE:WKS) has a current Gross Margin % of 29.43%. The current Gross Margin % is 29.43%, which is near median its 10-year median of 30.83 and 53% below the Interactive Media industry median of 62.58. Winking Studios' overall GF Score™ is 48/100 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 Winking Studios (LSE:WKS), the current Gross Margin % is 29.43% 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.
Winking Studios Ltd is an art outsourcing and game development studio providing complete end-to-end art outsourcing and game development services across various platforms. The three primary business segments of the company are the Original Equipment Manufacturer (Art Outsourcing Segment), Original Design Manufacturer (Game Development Segment), and Global Publishing and Others. The company derives maximum revenue from the Art Outsourcing Segment, which creates and develops digital art assets as part of its provision of art outsourcing services. The Group can provide a wide gamut of design services that include 2D concept art, 3D modeling, 2D animation, 3D animation, and visual effects. This art includes environment design and game character design.
48GF Score
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