Cayenne Entertainment Technology Co (ROCO:4946) 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
Cayenne Entertainment Technology Co had a gross margin of 40.82% 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.
Cayenne Entertainment Technology Co Gross Margin % Related Terms
Cayenne Entertainment Technology 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.
Cayenne Entertainment Technology Co Gross Margin % Chart
ROCO:4946 vs NTES, EA, TTWO: Gross Margin % Comparison
For the Electronic Gaming & Multimedia subindustry, Cayenne Entertainment Technology 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.
Cayenne Entertainment Technology Co Gross Margin % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Cayenne Entertainment Technology Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Cayenne Entertainment Technology Co'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.
Cayenne Entertainment Technology Co (ROCO:4946) has a Gross Margin % of 40.82% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Cayenne Entertainment Technology Co and its competitors. This is 80% above median its historical median of 22.65. According to the industry distribution chart, Cayenne Entertainment Technology Co ranks #375 out of 497 companies in the Interactive Media industry, placing it in the top 75.5%.
Is Cayenne Entertainment Technology Co's Gross Margin % too high?
Cayenne Entertainment Technology Co's current Gross Margin % of 40.82% is 80% above median its 10-year median of 22.65. The Interactive Media industry median Gross Margin % is 62.58. Cayenne Entertainment Technology Co's value of 40.82% is 34.8% below this industry median. Based on the distribution chart, Cayenne Entertainment Technology Co ranks #375 out of 497 companies in the Interactive Media industry, which is in the bottom quartile relative to peers. Overall, Cayenne Entertainment Technology Co has a GF Score™ of 62/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Cayenne Entertainment Technology Co's Gross Margin % compare to NTES and EA?
According to the Interactive Media industry distribution chart, Cayenne Entertainment Technology Co ranks #375 out of 497 companies for Gross Margin %. This places Cayenne Entertainment Technology Co in the lower half of its industry. The industry median Gross Margin % is 62.58. Cayenne Entertainment Technology Co's value of 40.82% is 34.8% below this benchmark. While the company's 10-year median is 22.65 vs. the industry median of 62.58, Cayenne Entertainment Technology 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. Cayenne Entertainment Technology Co's current Gross Margin % of 40.82% is 34.8% 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 Cayenne Entertainment Technology 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. Cayenne Entertainment Technology Co's current Gross Margin % is 40.82%, which is 80% above median its own 10-year median of 22.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cayenne Entertainment Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Cayenne Entertainment Technology Co (ROCO:4946) is currently considered Possible Value Trap. The stock's GF Value™ is NT$472.25, compared to a current price of NT$104.50 — trading 77.9% below its estimated fair value. The current Gross Margin % is 40.82%, which is 80% above median its 10-year median of 22.65 and 34.8% below the Interactive Media industry median of 62.58. Cayenne Entertainment Technology Co's overall GF Score™ is 62/100 with 2 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 Cayenne Entertainment Technology Co (ROCO:4946), the current Gross Margin % is 40.82% 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 Cayenne Entertainment Technology Co (ROCO:4946) Overvalued in 2026?
Based on GuruFocus' analysis, Cayenne Entertainment Technology Co stock appears to be undervalued.
The current stock price of NT$104.50 is trading 77.9% below its estimated GF Value™ of NT$472.25.
GuruFocus considers Cayenne Entertainment Technology Co to be Possible Value Trap.
Key valuation signals for ROCO:4946:
Gross Margin %: 40.82% (80% above median its 10-year median of 22.65)
GF Value™: NT$472.25 vs. price of NT$104.50 (77.9% below fair value)
Industry Position: 34.8% below the Interactive Media median (#375 of 497)
No single metric tells the full story. See the ROCO:4946 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cayenne Entertainment Technology Co Business Description
Cayenne Entertainment Technology Co Ltd is a provider of online casual games in Taiwan. It offers online air combat games, action games, shooting games, fighting games, basketball and baseball games, racing games, and dating games.
62GF Score
Get the complete analysis for ROCO:4946
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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