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Redwood AIRDWCF -1.43%14 Gross Margin % is 0.00% as of May. 2026. GuruFocus rates RDWCF with a GF Score™ of 14/100. Among 2,680 Software companies, Redwood AI ranks worse than 37313.4% on this metric.
Redwood AI (OTCPK:RDWCF) 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
Redwood AI had a gross margin of N/A% for the quarter that ended in May. 2026 => No sustainable 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.
Redwood AI Gross Margin % Related Terms
Redwood AI Gross Margin % Historical Data
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The historical data trend for Redwood AI'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.
RDWCF vs IBM, ACN, CTSH: Gross Margin % Comparison
For the Information Technology Services subindustry, Redwood AI'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.
Redwood AI Gross Margin % vs Software Industry
For the Software industry and Technology sector, Redwood AI's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Redwood AI'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.
Redwood AI (RDWCF) has a Gross Margin % of 0.00% as of May. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Redwood AI and its competitors. According to the industry distribution chart, Redwood AI ranks #999999 out of 2680 companies in the Software industry.
Is Redwood AI's Gross Margin % too high?
Redwood AI's current Gross Margin % is 0.00%. Based on the distribution chart, Redwood AI ranks #999999 out of 2680 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Redwood AI has a GF Score™ of 14/100, reflecting its overall financial health beyond just this single metric.
How does Redwood AI's Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Redwood AI ranks #999999 out of 2680 companies for Gross Margin %. This places Redwood AI in the lower half of its industry. The industry median Gross Margin % is 40.41. 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. 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 Redwood AI 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. Redwood AI's current Gross Margin % is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Redwood AI stock overvalued right now?
Redwood AI (RDWCF) has a current Gross Margin % of 0.00%. The current Gross Margin % is 0.00%. Redwood AI's overall GF Score™ is 14/100. 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 Redwood AI (RDWCF), the current Gross Margin % is 0.00% as of May. 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.
Redwood AI Corp is a Vancouver-based artificial intelligence company. It is engaged in providing software and analytics solutions for chemical and pharmaceutical development. Its platform integrates AI models, cheminformatics, and operational data to support synthesis planning, process optimization, and supply-chain decision-making, helping reduce time, cost, and risk from early development through commercialization.
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