Wayi International Digital Entertainment Co (ROCO:3086) 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
Wayi International Digital Entertainment Co had a gross margin of 44.07% 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.
Wayi International Digital Entertainment Co Gross Margin % Related Terms
Wayi International Digital Entertainment Co Gross Margin % Historical Data
* 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.
Wayi International Digital Entertainment Co Gross Margin % Chart
Wayi International Digital Entertainment Co Annual Data
ROCO:3086 vs NTES, EA, TTWO: Gross Margin % Comparison
For the Electronic Gaming & Multimedia subindustry, Wayi International Digital Entertainment Co'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.
Wayi International Digital Entertainment Co Gross Margin % vs Interactive Media Industry
* 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.
Wayi International Digital Entertainment Co (ROCO:3086) has a Gross Margin % of 44.07% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Wayi International Digital Entertainment Co and its competitors. This is 14% below median its historical median of 51.16. Over the past decade, Wayi International Digital Entertainment Co's Gross Margin % has ranged from 2.12 to 75.68. According to the industry distribution chart, Wayi International Digital Entertainment Co ranks #328 out of 497 companies in the Interactive Media industry, placing it in the top 66%.
Is Wayi International Digital Entertainment Co's Gross Margin % too high?
Wayi International Digital Entertainment Co's current Gross Margin % of 44.07% is 14% below median its 10-year median of 51.16. Over the past 10 years, this metric has ranged from a low of 2.12 to a high of 75.68. The Interactive Media industry median Gross Margin % is 62.58. Wayi International Digital Entertainment Co's value of 44.07% is 29.6% below this industry median. Based on the distribution chart, Wayi International Digital Entertainment Co ranks #328 out of 497 companies in the Interactive Media industry, which is below the industry midpoint. Overall, Wayi International Digital Entertainment Co has a GF Score™ of 51/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Wayi International Digital Entertainment Co's Gross Margin % compare to NTES and EA?
According to the Interactive Media industry distribution chart, Wayi International Digital Entertainment Co ranks #328 out of 497 companies for Gross Margin %. This places Wayi International Digital Entertainment Co in the lower half of its industry. The industry median Gross Margin % is 62.58. Wayi International Digital Entertainment Co's value of 44.07% is 29.6% below this benchmark. Historically, Wayi International Digital Entertainment Co's own Gross Margin % has ranged from 2.12 to 75.68 over the past decade. While the company's 10-year median is 51.16 vs. the industry median of 62.58, Wayi International Digital Entertainment Co 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 an Interactive Media company?
The median Gross Margin % among Interactive Media companies is 62.58, based on 497 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. Wayi International Digital Entertainment Co's current Gross Margin % of 44.07% is 29.6% 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 Wayi International Digital Entertainment Co and its competitors. For the Interactive Media industry, the median Gross Margin % is 62.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Wayi International Digital Entertainment Co's current Gross Margin % is 44.07%, which is 14% below median its own 10-year median of 51.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Wayi International Digital Entertainment Co stock overvalued right now?
Based on GuruFocus' analysis, Wayi International Digital Entertainment Co (ROCO:3086) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$13.30, compared to a current price of NT$31.70 — trading 138.3% above its estimated fair value. The current Gross Margin % is 44.07%, which is 14% below median its 10-year median of 51.16 and 29.6% below the Interactive Media industry median of 62.58. Wayi International Digital Entertainment Co's overall GF Score™ is 51/100 with 3 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 Wayi International Digital Entertainment Co (ROCO:3086), the current Gross Margin % is 44.07% 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 Wayi International Digital Entertainment Co (ROCO:3086) Overvalued in 2026?
Based on GuruFocus' analysis, Wayi International Digital Entertainment Co stock appears to be overvalued.
The current stock price of NT$31.70 is trading 138.3% above its estimated GF Value™ of NT$13.30.
GuruFocus considers Wayi International Digital Entertainment Co to be Significantly Overvalued.
Key valuation signals for ROCO:3086:
Gross Margin %: 44.07% (14% below median its 10-year median of 51.16)
GF Value™: NT$13.30 vs. price of NT$31.70 (138.3% above fair value)
Industry Position: 29.6% below the Interactive Media median (#328 of 497)
No single metric tells the full story. See the ROCO:3086 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Wayi International Digital Entertainment Co Business Description
Wayi International Digital Entertainment Co Ltd is engaged in the research, development, operation, and marketing of online games in Taiwan. It offers online entertainment games, roll-acting games, and others. Its other business includes computer software, hardware, trading, and information software programming services. The company includes games like Ragnador and BanaBana.
51GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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