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Kuang Hong Arts Management (ROCO:6596) 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
Kuang Hong Arts Management had a gross margin of 31.95% for the quarter that ended in Dec. 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.
Kuang Hong Arts Management Gross Margin % Related Terms
Kuang Hong Arts Management 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:6596 vs NFLX, DIS, WBD: Gross Margin % Comparison
For the Entertainment subindustry, Kuang Hong Arts Management'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.
Kuang Hong Arts Management Gross Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Kuang Hong Arts Management's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Kuang Hong Arts Management'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.
Kuang Hong Arts Management (ROCO:6596) has a Gross Margin % of 31.95% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Kuang Hong Arts Management and its competitors. This is 13% above median its historical median of 28.24. Over the past decade, Kuang Hong Arts Management's Gross Margin % has ranged from 6.87 to 37.65. According to the industry distribution chart, Kuang Hong Arts Management ranks #498 out of 944 companies in the Media - Diversified industry, placing it in the top 52.8%.
Is Kuang Hong Arts Management's Gross Margin % too high?
Kuang Hong Arts Management's current Gross Margin % of 31.95% is 13% above median its 10-year median of 28.24. Over the past 10 years, this metric has ranged from a low of 6.87 to a high of 37.65. The Media - Diversified industry median Gross Margin % is 38.99. Kuang Hong Arts Management's value of 31.95% is 18.1% below this industry median. Based on the distribution chart, Kuang Hong Arts Management ranks #498 out of 944 companies in the Media - Diversified industry, which is below the industry midpoint. Overall, Kuang Hong Arts Management has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Kuang Hong Arts Management's Gross Margin % compare to NFLX and DIS?
According to the Media - Diversified industry distribution chart, Kuang Hong Arts Management ranks #498 out of 944 companies for Gross Margin %. This places Kuang Hong Arts Management in the lower half of its industry. The industry median Gross Margin % is 38.99. Kuang Hong Arts Management's value of 31.95% is 18.1% below this benchmark. Historically, Kuang Hong Arts Management's own Gross Margin % has ranged from 6.87 to 37.65 over the past decade. While the company's 10-year median is 28.24 vs. the industry median of 38.99, Kuang Hong Arts Management 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 Media - Diversified company?
The median Gross Margin % among Media - Diversified companies is 38.99, based on 944 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. Kuang Hong Arts Management's current Gross Margin % of 31.95% is 18.1% 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 Kuang Hong Arts Management and its competitors. For the Media - Diversified industry, the median Gross Margin % is 38.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kuang Hong Arts Management's current Gross Margin % is 31.95%, which is 13% above median its own 10-year median of 28.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kuang Hong Arts Management stock overvalued right now?
Based on GuruFocus' analysis, Kuang Hong Arts Management (ROCO:6596) is currently considered Fairly Valued. The stock's GF Value™ is NT$95.75, compared to a current price of NT$89.40 — trading 6.6% below its estimated fair value. The current Gross Margin % is 31.95%, which is 13% above median its 10-year median of 28.24 and 18.1% below the Media - Diversified industry median of 38.99. Kuang Hong Arts Management's overall GF Score™ is 78/100 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 Kuang Hong Arts Management (ROCO:6596), the current Gross Margin % is 31.95% 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 Kuang Hong Arts Management (ROCO:6596) Overvalued in 2026?
Based on GuruFocus' analysis, Kuang Hong Arts Management stock appears to be undervalued.
The current stock price of NT$89.40 is trading 6.6% below its estimated GF Value™ of NT$95.75.
GuruFocus considers Kuang Hong Arts Management to be Fairly Valued.
Key valuation signals for ROCO:6596:
Gross Margin %: 31.95% (13% above median its 10-year median of 28.24)
GF Value™: NT$95.75 vs. price of NT$89.40 (6.6% below fair value)
Industry Position: 18.1% below the Media - Diversified median (#498 of 944)
No single metric tells the full story. See the ROCO:6596 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kuang Hong Arts Management Inc is a media company involved in promoting cultural events which include music, dance, exhibitions, Drama, Lectures, and other events.
78GF Score
Get the complete analysis for ROCO:6596
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