GDS HoldingsMEX:GDSN 69 Gross Margin % is 33.61% as of Mar. 2026, which is 48% above its 10-year median of 22.69. GuruFocus rates MEX:GDSN with a GF Score™ of 69/100 and a GF Value™ of MXN449.22 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 2,685 Software companies, GDS Holdings ranks worse than 70.02% 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
GDS Holdings had a gross margin of 33.61% for the quarter that ended in Mar. 2026 => 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.
GDS Holdings Gross Margin % Related Terms
GDS Holdings Gross Margin % Historical Data
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The historical data trend for GDS Holdings'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.
MEX:GDSN vs INGM, PSN, G: Gross Margin % Comparison
For the Information Technology Services subindustry, GDS 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.
GDS Holdings Gross Margin % vs Software Industry
For the Software industry and Technology sector, GDS Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where GDS 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.
GDS Holdings (MEX:GDSN) has a Gross Margin % of 33.61% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on GDS Holdings and its competitors. This is 48% above median its historical median of 22.69. Over the past decade, GDS Holdings' Gross Margin % has ranged from 19.95 to 27.02. According to the industry distribution chart, GDS Holdings ranks #1880 out of 2685 companies in the Software industry, placing it in the top 70%.
Is GDS Holdings' Gross Margin % too high?
GDS Holdings' current Gross Margin % of 33.61% is 48% above median its 10-year median of 22.69. Over the past 10 years, this metric has ranged from a low of 19.95 to a high of 27.02. The Software industry median Gross Margin % is 40.45. GDS Holdings' value of 33.61% is 16.9% below this industry median. Based on the distribution chart, GDS Holdings ranks #1880 out of 2685 companies in the Software industry, which is below the industry midpoint. Overall, GDS Holdings has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does GDS Holdings' Gross Margin % compare to INGM and PSN?
According to the Software industry distribution chart, GDS Holdings ranks #1880 out of 2685 companies for Gross Margin %. This places GDS Holdings in the lower half of its industry. The industry median Gross Margin % is 40.45. GDS Holdings' value of 33.61% is 16.9% below this benchmark. Historically, GDS Holdings' own Gross Margin % has ranged from 19.95 to 27.02 over the past decade. While the company's 10-year median is 22.69 vs. the industry median of 40.45, GDS 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 40.45, 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. GDS Holdings's current Gross Margin % of 33.61% is 16.9% 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 GDS Holdings 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. GDS Holdings's current Gross Margin % is 33.61%, which is 48% above median its own 10-year median of 22.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GDS Holdings stock overvalued right now?
Based on GuruFocus' analysis, GDS Holdings (MEX:GDSN) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN449.22, compared to a current price of MXN618.00 — trading 37.6% above its estimated fair value. The current Gross Margin % is 33.61%, which is 48% above median its 10-year median of 22.69 and 16.9% below the Software industry median of 40.45. GDS Holdings' overall GF Score™ is 69/100 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 GDS Holdings (MEX:GDSN), the current Gross Margin % is 33.61% 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 GDS Holdings (MEX:GDSN) Overvalued in 2026?
Based on GuruFocus' analysis, GDS Holdings stock appears to be overvalued.
The current stock price of MXN618.00 is trading 37.6% above its estimated GF Value™ of MXN449.22.
GuruFocus considers GDS Holdings to be Significantly Overvalued.
Key valuation signals for MEX:GDSN:
Gross Margin %: 33.61% (48% above median its 10-year median of 22.69)
GF Value™: MXN449.22 vs. price of MXN618.00 (37.6% above fair value)
Industry Position: 16.9% below the Software median (#1880 of 2685)
No single metric tells the full story. See the MEX:GDSN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
GDS Holdings started as an IT service provider in 2001, then moved to the data center business with its first self-developed data center opening in 2010. The company now develops and operates data centers in China and also builds, operates, and transfers data centers for other clients. It offers colocation and managed services and mainly targets hyperscale cloud service customers who take large areas of its data centers or even whole data centers under long-term contracts. Its data centers are located predominantly in and around the Tier 1 cities in China, and it has also started expanding into Southeast Asia via the now 23% owned DayOne. GDS listed on the Nasdaq in 2016 and completed a secondary listing in Hong Kong in 2020.
69GF Score
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