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Cloopen Group HoldingRAASY +2.01%41 Gross Margin % is 27.39% as of Dec. 2025, which is 24% below its 10-year median of 36.18. GuruFocus rates RAASY with a GF Score™ of 41/100 and a GF Value™ of $0.50 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 2,690 Software companies, Cloopen Group Holding ranks worse than 67.21% on this metric.
Cloopen Group Holding (OTCPK:RAASY) 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
Cloopen Group Holding had a gross margin of 27.39% 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.
Cloopen Group Holding Gross Margin % Related Terms
Cloopen Group Holding Gross Margin % Historical Data
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The historical data trend for Cloopen Group Holding'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.
RAASY vs RYDE, SCOR, SSTI: Gross Margin % Comparison
For the Software - Application subindustry, Cloopen Group Holding'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.
Cloopen Group Holding Gross Margin % vs Software Industry
For the Software industry and Technology sector, Cloopen Group Holding's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Cloopen Group Holding'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.
Cloopen Group Holding (RAASY) has a Gross Margin % of 27.39% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Cloopen Group Holding and its competitors. This is 24% below median its historical median of 36.18. Over the past decade, Cloopen Group Holding's Gross Margin % has ranged from 27.39 to 38.12. According to the industry distribution chart, Cloopen Group Holding ranks #1808 out of 2690 companies in the Software industry, placing it in the top 67.2%.
Is Cloopen Group Holding's Gross Margin % too high?
Cloopen Group Holding's current Gross Margin % of 27.39% is 24% below median its 10-year median of 36.18. Over the past 10 years, this metric has ranged from a low of 27.39 to a high of 38.12. The Software industry median Gross Margin % is 40.58. Cloopen Group Holding's value of 27.39% is 32.5% below this industry median. Based on the distribution chart, Cloopen Group Holding ranks #1808 out of 2690 companies in the Software industry, which is below the industry midpoint. Overall, Cloopen Group Holding has a GF Score™ of 41/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cloopen Group Holding's Gross Margin % compare to RYDE and SCOR?
According to the Software industry distribution chart, Cloopen Group Holding ranks #1808 out of 2690 companies for Gross Margin %. This places Cloopen Group Holding in the lower half of its industry. The industry median Gross Margin % is 40.58. Cloopen Group Holding's value of 27.39% is 32.5% below this benchmark. Historically, Cloopen Group Holding's own Gross Margin % has ranged from 27.39 to 38.12 over the past decade. While the company's 10-year median is 36.18 vs. the industry median of 40.58, Cloopen Group Holding 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 40.58, based on 2,690 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. Cloopen Group Holding's current Gross Margin % of 27.39% is 32.5% 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 Cloopen Group Holding and its competitors. For the Software industry, the median Gross Margin % is 40.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cloopen Group Holding's current Gross Margin % is 27.39%, which is 24% below median its own 10-year median of 36.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cloopen Group Holding stock overvalued right now?
Based on GuruFocus' analysis, Cloopen Group Holding (RAASY) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.50, compared to a current price of $2.03 — trading 306% above its estimated fair value. The current Gross Margin % is 27.39%, which is 24% below median its 10-year median of 36.18 and 32.5% below the Software industry median of 40.58. Cloopen Group Holding's overall GF Score™ is 41/100 with 4 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 Cloopen Group Holding (RAASY), the current Gross Margin % is 27.39% 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 Cloopen Group Holding (RAASY) Overvalued in 2026?
Based on GuruFocus' analysis, Cloopen Group Holding stock appears to be overvalued.
The current stock price of $2.03 is trading 306% above its estimated GF Value™ of $0.50.
GuruFocus considers Cloopen Group Holding to be Significantly Overvalued.
Key valuation signals for RAASY:
Gross Margin %: 27.39% (24% below median its 10-year median of 36.18)
GF Value™: $0.50 vs. price of $2.03 (306% above fair value)
Industry Position: 32.5% below the Software median (#1808 of 2690)
No single metric tells the full story. See the RAASY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cloopen Group Holding Ltd is principally engaged in providing integrated communication services based on cloud computing technology. The Group's principal operations and geographic markets are mainly in the People's Republic of China (PRC). It is a multi-capability cloud-based communications solution provider in China offering a suite of cloud-based communications solutions, covering communications platform as a service (CPaaS), cloud-based contact centers, or cloud-based CC, and cloud-based unified communications and collaborations, or cloud-based UC&C. The company serves a customer base consisting of enterprises across a variety of industries, including internet, telecommunications, financial services, education, industrial manufacturing, and energy.
41GF Score
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