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Newsoft TechnologyROCO:5202 +1.10%60 Gross Margin % is 77.53% as of Dec. 2025, which is 12% above its 10-year median of 69.40. GuruFocus rates ROCO:5202 with a GF Score™ of 60/100 and a GF Value™ of NT$18.75 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 2,683 Software companies, Newsoft Technology ranks better than 87.7% on this metric.
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
Newsoft Technology had a gross margin of 77.53% 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.
Newsoft Technology Gross Margin % Related Terms
Newsoft Technology Gross Margin % Historical Data
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The historical data trend for Newsoft Technology'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.
ROCO:5202 vs UBER, SHOP, CRM: Gross Margin % Comparison
For the Software - Application subindustry, Newsoft Technology'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.
Newsoft Technology Gross Margin % vs Software Industry
For the Software industry and Technology sector, Newsoft Technology's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Newsoft Technology'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.
Newsoft Technology (ROCO:5202) has a Gross Margin % of 77.53% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Newsoft Technology and its competitors. This is 12% above median its historical median of 69.40. Over the past decade, Newsoft Technology's Gross Margin % has ranged from 53.63 to 78.68. According to the industry distribution chart, Newsoft Technology ranks #330 out of 2683 companies in the Software industry, placing it in the top 12.3%.
Is Newsoft Technology's Gross Margin % too high?
Newsoft Technology's current Gross Margin % of 77.53% is 12% above median its 10-year median of 69.40. Over the past 10 years, this metric has ranged from a low of 53.63 to a high of 78.68. The Software industry median Gross Margin % is 40.47. Newsoft Technology's value of 77.53% is 91.6% above this industry median. Based on the distribution chart, Newsoft Technology ranks #330 out of 2683 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Newsoft Technology has a GF Score™ of 60/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Newsoft Technology's Gross Margin % compare to UBER and SHOP?
According to the Software industry distribution chart, Newsoft Technology ranks #330 out of 2683 companies for Gross Margin %. This places Newsoft Technology in the top 12% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.47. Newsoft Technology's value of 77.53% is 91.6% above this benchmark. Historically, Newsoft Technology's own Gross Margin % has ranged from 53.63 to 78.68 over the past decade. While the company's 10-year median is 69.40 vs. the industry median of 40.47, Newsoft Technology has consistently been above 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 40.47, based on 2,683 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. Newsoft Technology's current Gross Margin % of 77.53% is 91.6% above 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 Newsoft Technology and its competitors. For the Software industry, the median Gross Margin % is 40.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Newsoft Technology's current Gross Margin % is 77.53%, which is 12% above median its own 10-year median of 69.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Newsoft Technology stock overvalued right now?
Based on GuruFocus' analysis, Newsoft Technology (ROCO:5202) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$18.75, compared to a current price of NT$13.80 — trading 26.4% below its estimated fair value. The current Gross Margin % is 77.53%, which is 12% above median its 10-year median of 69.40 and 91.6% above the Software industry median of 40.47. Newsoft Technology's overall GF Score™ is 60/100 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 Newsoft Technology (ROCO:5202), the current Gross Margin % is 77.53% 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 Newsoft Technology (ROCO:5202) Overvalued in 2026?
Based on GuruFocus' analysis, Newsoft Technology stock appears to be undervalued.
The current stock price of NT$13.80 is trading 26.4% below its estimated GF Value™ of NT$18.75.
GuruFocus considers Newsoft Technology to be Modestly Undervalued.
Key valuation signals for ROCO:5202:
Gross Margin %: 77.53% (12% above median its 10-year median of 69.40)
GF Value™: NT$18.75 vs. price of NT$13.80 (26.4% below fair value)
Industry Position: 91.6% above the Software median (#330 of 2683)
No single metric tells the full story. See the ROCO:5202 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Newsoft Technology Corp is a Taiwan-based company. The principal activities of The Company and its subsidiaries are trading in computer CPU and peripherals; research and development, sales and trading of communications network equipment; information software services; research, design, manufacture and trading of software relating to the aforementioned computer peripherals, and oral health care business. Its reportable segments included software services, system services, and distribution channel business segments. The company earns majority revenue from Distribution channel business.
60GF Score
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