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Soft-World International (ROCO:5478) 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
Soft-World International had a gross margin of 53.81% 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.
Soft-World International Gross Margin % Related Terms
Soft-World International 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.
ROCO:5478 vs NTES, EA, TTWO: Gross Margin % Comparison
For the Electronic Gaming & Multimedia subindustry, Soft-World International'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.
Soft-World International Gross Margin % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Soft-World International's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Soft-World International'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.
Soft-World International (ROCO:5478) has a Gross Margin % of 53.81% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Soft-World International and its competitors. This is near median its historical median of 52.29. Over the past decade, Soft-World International's Gross Margin % has ranged from 17.32 to 55.85. According to the industry distribution chart, Soft-World International ranks #289 out of 497 companies in the Interactive Media industry, placing it in the top 58.1%.
Is Soft-World International's Gross Margin % too high?
Soft-World International's current Gross Margin % of 53.81% is near median its 10-year median of 52.29. Over the past 10 years, this metric has ranged from a low of 17.32 to a high of 55.85. The Interactive Media industry median Gross Margin % is 62.58. Soft-World International's value of 53.81% is 14% below this industry median. Based on the distribution chart, Soft-World International ranks #289 out of 497 companies in the Interactive Media industry, which is below the industry midpoint. Overall, Soft-World International has a GF Score™ of 77/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Soft-World International's Gross Margin % compare to NTES and EA?
According to the Interactive Media industry distribution chart, Soft-World International ranks #289 out of 497 companies for Gross Margin %. This places Soft-World International in the lower half of its industry. The industry median Gross Margin % is 62.58. Soft-World International's value of 53.81% is 14% below this benchmark. Historically, Soft-World International's own Gross Margin % has ranged from 17.32 to 55.85 over the past decade. While the company's 10-year median is 52.29 vs. the industry median of 62.58, Soft-World International 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. Soft-World International's current Gross Margin % of 53.81% is 14% 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 Soft-World International 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. Soft-World International's current Gross Margin % is 53.81%, which is near median its own 10-year median of 52.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Soft-World International stock overvalued right now?
Based on GuruFocus' analysis, Soft-World International (ROCO:5478) is currently considered Fairly Valued. The stock's GF Value™ is NT$101.04, compared to a current price of NT$100.50 — trading 0.5% below its estimated fair value. The current Gross Margin % is 53.81%, which is near median its 10-year median of 52.29 and 14% below the Interactive Media industry median of 62.58. Soft-World International's overall GF Score™ is 77/100 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 Soft-World International (ROCO:5478), the current Gross Margin % is 53.81% 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 Soft-World International (ROCO:5478) Overvalued in 2026?
Based on GuruFocus' analysis, Soft-World International stock appears to be undervalued.
The current stock price of NT$100.50 is trading 0.5% below its estimated GF Value™ of NT$101.04.
GuruFocus considers Soft-World International to be Fairly Valued.
Key valuation signals for ROCO:5478:
Gross Margin %: 53.81% (near median its 10-year median of 52.29)
GF Value™: NT$101.04 vs. price of NT$100.50 (0.5% below fair value)
Industry Position: 14% below the Interactive Media median (#289 of 497)
No single metric tells the full story. See the ROCO:5478 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Soft-World International Corp is engaged in the digital content point service platforms, production and publication of computer game magazines, commercial advertising services and the retail sale of entertainment products and accessories for game software. The Corporation also acts as an agent for games and commercial software. Its segments include Soft-World; Chinese Gamer International Corporation; Game Flier International Corporation; Neweb Technologies; Efun Corporation; and Others. It operates in China, Taiwan and other countries. The company derives maximum revenue from Soft-World International Corporation segment.
77GF Score
Get the complete analysis for ROCO:5478
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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