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Newborn TownNWBTF 90 Gross Margin % is 55.89% as of Dec. 2025, which is 8% above its 10-year median of 51.52. GuruFocus rates NWBTF with a GF Score™ of 90/100. The stock has 1 warning sign investors should review. Among 2,680 Software companies, Newborn Town ranks better than 67.05% on this metric.
Newborn Town (OTCPK:NWBTF) 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
Newborn Town had a gross margin of 55.89% 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.
Newborn Town Gross Margin % Related Terms
Newborn Town Gross Margin % Historical Data
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The historical data trend for Newborn Town'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.
NWBTF vs CRM, SHOP, UBER: Gross Margin % Comparison
For the Software - Application subindustry, Newborn Town'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.
Newborn Town Gross Margin % vs Software Industry
For the Software industry and Technology sector, Newborn Town's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Newborn Town'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.
Newborn Town (NWBTF) has a Gross Margin % of 55.89% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Newborn Town and its competitors. This is near median its historical median of 51.52. Over the past decade, Newborn Town's Gross Margin % has ranged from 37.79 to 67.11. According to the industry distribution chart, Newborn Town ranks #883 out of 2680 companies in the Software industry, placing it in the top 32.9%.
Is Newborn Town's Gross Margin % too high?
Newborn Town's current Gross Margin % of 55.89% is near median its 10-year median of 51.52. Over the past 10 years, this metric has ranged from a low of 37.79 to a high of 67.11. The Software industry median Gross Margin % is 40.41. Newborn Town's value of 55.89% is 38.3% above this industry median. Based on the distribution chart, Newborn Town ranks #883 out of 2680 companies in the Software industry, which is above the industry midpoint. Overall, Newborn Town has a GF Score™ of 90/100, reflecting its overall financial health beyond just this single metric.
How does Newborn Town's Gross Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, Newborn Town ranks #883 out of 2680 companies for Gross Margin %. This puts Newborn Town in the upper half of its industry. The industry median Gross Margin % is 40.41. Newborn Town's value of 55.89% is 38.3% above this benchmark. Historically, Newborn Town's own Gross Margin % has ranged from 37.79 to 67.11 over the past decade. While the company's 10-year median is 51.52 vs. the industry median of 40.41, Newborn Town 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 40.41, based on 2,680 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. Newborn Town's current Gross Margin % of 55.89% is 38.3% 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 Newborn Town and its competitors. For the Software industry, the median Gross Margin % is 40.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Newborn Town's current Gross Margin % is 55.89%, which is near median its own 10-year median of 51.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Newborn Town stock overvalued right now?
Newborn Town (NWBTF) has a current Gross Margin % of 55.89%. The current Gross Margin % is 55.89%, which is near median its 10-year median of 51.52 and 38.3% above the Software industry median of 40.41. Newborn Town's overall GF Score™ is 90/100 with 1 warning sign 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 Newborn Town (NWBTF), the current Gross Margin % is 55.89% 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.
Newborn Town Inc is an investment holding company. The Company and its subsidiaries are principally engaged in providing social networking business (mainly through social networking Apps such as MICO, SUGO, Blued and TopTop) and inventive business (mainly through advertising service and merchandise sales). The company operates through two segments namely, Innovative business and Social networking business. The company generates the majority of its revenue from the Social networking business segment.
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