Donutes International CoROCO:7756 15 Gross Margin % is 35.28% as of Dec. 2025, which is 6% below its 10-year median of 37.48. GuruFocus rates ROCO:7756 with a GF Score™ of 15/100. The stock has 7 warning signs investors should review. Among 305 Retail - Defensive companies, Donutes International Co ranks better than 81.97% on this metric.
Donutes International Co (ROCO:7756) 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
Donutes International Co had a gross margin of 35.28% 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.
Donutes International Co Gross Margin % Related Terms
Donutes International 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.
For the Grocery Stores subindustry, Donutes International 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.
Donutes International Co Gross Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Donutes International Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Donutes International 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.
Donutes International Co (ROCO:7756) has a Gross Margin % of 35.28% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Donutes International Co and its competitors. This is near median its historical median of 37.48. Over the past decade, Donutes International Co's Gross Margin % has ranged from 33.90 to 40.54. According to the industry distribution chart, Donutes International Co ranks #55 out of 305 companies in the Retail - Defensive industry, placing it in the top 18%.
Is Donutes International Co's Gross Margin % too high?
Donutes International Co's current Gross Margin % of 35.28% is near median its 10-year median of 37.48. Over the past 10 years, this metric has ranged from a low of 33.90 to a high of 40.54. The Retail - Defensive industry median Gross Margin % is 24.08. Donutes International Co's value of 35.28% is 46.5% above this industry median. Based on the distribution chart, Donutes International Co ranks #55 out of 305 companies in the Retail - Defensive industry, which is in the top quartile — a strong position relative to peers. Overall, Donutes International Co has a GF Score™ of 15/100, reflecting its overall financial health beyond just this single metric.
How does Donutes International Co's Gross Margin % compare to KR and SFM?
According to the Retail - Defensive industry distribution chart, Donutes International Co ranks #55 out of 305 companies for Gross Margin %. This places Donutes International Co in the top 18% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 24.08. Donutes International Co's value of 35.28% is 46.5% above this benchmark. Historically, Donutes International Co's own Gross Margin % has ranged from 33.90 to 40.54 over the past decade. While the company's 10-year median is 37.48 vs. the industry median of 24.08, Donutes International Co 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 Retail - Defensive company?
The median Gross Margin % among Retail - Defensive companies is 24.08, based on 305 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. Donutes International Co's current Gross Margin % of 35.28% is 46.5% 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 Donutes International Co and its competitors. For the Retail - Defensive industry, the median Gross Margin % is 24.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Donutes International Co's current Gross Margin % is 35.28%, which is near median its own 10-year median of 37.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Donutes International Co stock overvalued right now?
Donutes International Co (ROCO:7756) has a current Gross Margin % of 35.28%. The current Gross Margin % is 35.28%, which is near median its 10-year median of 37.48 and 46.5% above the Retail - Defensive industry median of 24.08. Donutes International Co's overall GF Score™ is 15/100 with 7 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 Donutes International Co (ROCO:7756), the current Gross Margin % is 35.28% 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.
Donutes International Co Ltd is engaged in baking activities. The company uses fresh ingredients for cooking and production. The products offered by the company are coffee, tea, smoothie, bread, sandwich, birthday cake, and mousse. cake, Italian ice cream, imported food festival gift boxes, and others.
15GF Score
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