Round OneRNDOF +12.90%42 Gross Margin % is 23.78% as of Sep. 2025, which is 89% above its 10-year median of 12.60. GuruFocus rates RNDOF with a GF Score™ of 42/100 and a GF Value™ of $0.77 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 793 Travel & Leisure companies, Round One ranks better than 86.51% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Round One's Gross Profit for the
three
months ended in Sep. 2025 was $78.0 Mil. Round One's Revenue for the
three
months ended in Sep. 2025 was $328.0 Mil. Therefore, Round One's Gross Margin % for the quarter that ended in Sep. 2025 was 23.78%.
The historical rank and industry rank for Round One's Gross Margin % or its related term are showing as below:
RNDOF'
s Gross Margin % Range Over the Past 10 Years
Min: -26.64 Med: 12.6 Max: 87.62
Current: 77.16
During the past 13 years, the highestGross Margin % of Round One was 87.62%. The lowest was -26.64%. And the median was 12.60%.
RNDOF's Gross Margin % is ranked better than 86.51% of 793
companies
in the Travel & Leisure industry
Industry Median: 44.02
vs RNDOF: 77.16
Round One had a gross margin of 23.78% for the quarter that ended in Sep. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Round One was 0.00% per year.
Round One (OTCPK:RNDOF) 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
Round One had a gross margin of 23.78% for the quarter that ended in Sep. 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.
Round One Gross Margin % Related Terms
Round One Gross Margin % Historical Data
* Premium members only.
The historical data trend for Round One'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.
For the Leisure subindustry, Round One'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.
Round One Gross Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Round One's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Round One'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.
Round One (RNDOF) has a Gross Margin % of 23.78% as of Sep. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Round One and its competitors. This is 89% above median its historical median of 12.60. According to the industry distribution chart, Round One ranks #107 out of 793 companies in the Travel & Leisure industry, placing it in the top 13.5%.
Is Round One's Gross Margin % too high?
Round One's current Gross Margin % of 23.78% is 89% above median its 10-year median of 12.60. The Travel & Leisure industry median Gross Margin % is 44.02. Round One's value of 23.78% is 46% below this industry median. Based on the distribution chart, Round One ranks #107 out of 793 companies in the Travel & Leisure industry, which is in the top quartile — a strong position relative to peers. Overall, Round One has a GF Score™ of 42/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Round One's Gross Margin % compare to AS and HAS?
According to the Travel & Leisure industry distribution chart, Round One ranks #107 out of 793 companies for Gross Margin %. This places Round One in the top 14% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 44.02. Round One's value of 23.78% is 46% below this benchmark. While the company's 10-year median is 12.60 vs. the industry median of 44.02, Round One 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 Travel & Leisure company?
The median Gross Margin % among Travel & Leisure companies is 44.02, based on 793 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. Round One's current Gross Margin % of 23.78% is 46% 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 Round One and its competitors. For the Travel & Leisure industry, the median Gross Margin % is 44.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Round One's current Gross Margin % is 23.78%, which is 89% above median its own 10-year median of 12.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Round One stock overvalued right now?
Based on GuruFocus' analysis, Round One (RNDOF) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.77, compared to a current price of $7.00 — trading 809.1% above its estimated fair value. The current Gross Margin % is 23.78%, which is 89% above median its 10-year median of 12.60 and 46% below the Travel & Leisure industry median of 44.02. Round One's overall GF Score™ is 42/100 with 6 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 Round One (RNDOF), the current Gross Margin % is 23.78% as of Sep. 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 Round One (RNDOF) Overvalued in 2026?
Based on GuruFocus' analysis, Round One stock appears to be overvalued.
The current stock price of $7.00 is trading 809.1% above its estimated GF Value™ of $0.77.
GuruFocus considers Round One to be Significantly Overvalued.
Key valuation signals for RNDOF:
Gross Margin %: 23.78% (89% above median its 10-year median of 12.60)
GF Value™: $0.77 vs. price of $7.00 (809.1% above fair value)
Industry Position: 46% below the Travel & Leisure median (#107 of 793)
No single metric tells the full story. See the RNDOF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Round One Corp engages is a Japanese company providing various leisure facilities. The firm principally engages in the management of indoor leisure facilities that mainly includes bowling, amusement activities, spotcher, airporin, spocha, shuttle bus, and karaoke. The company also has operations based in the United States.
42GF Score
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