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Ucap Cloud Information Technology Co (SHSE:688228) 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
Ucap Cloud Information Technology Co had a gross margin of 40.33% for the quarter that ended in Mar. 2026 => 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.
Ucap Cloud Information Technology Co Gross Margin % Related Terms
Ucap Cloud Information 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.
Ucap Cloud Information Technology Co Gross Margin % Chart
SHSE:688228 vs MSFT, ORCL, PLTR: Gross Margin % Comparison
For the Software - Infrastructure subindustry, Ucap Cloud Information 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.
Ucap Cloud Information Technology Co Gross Margin % vs Software Industry
* 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.
Ucap Cloud Information Technology Co (SHSE:688228) has a Gross Margin % of 40.33% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Ucap Cloud Information Technology Co and its competitors. This is 17% below median its historical median of 48.67. Over the past decade, Ucap Cloud Information Technology Co's Gross Margin % has ranged from 37.51 to 63.03. According to the industry distribution chart, Ucap Cloud Information Technology Co ranks #1410 out of 2690 companies in the Software industry, placing it in the top 52.4%.
Is Ucap Cloud Information Technology Co's Gross Margin % too high?
Ucap Cloud Information Technology Co's current Gross Margin % of 40.33% is 17% below median its 10-year median of 48.67. Over the past 10 years, this metric has ranged from a low of 37.51 to a high of 63.03. The Software industry median Gross Margin % is 40.50. Ucap Cloud Information Technology Co's value of 40.33% is 0.4% below this industry median. Based on the distribution chart, Ucap Cloud Information Technology Co ranks #1410 out of 2690 companies in the Software industry, which is below the industry midpoint. Overall, Ucap Cloud Information Technology Co has a GF Score™ of 72/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ucap Cloud Information Technology Co's Gross Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, Ucap Cloud Information Technology Co ranks #1410 out of 2690 companies for Gross Margin %. This places Ucap Cloud Information Technology Co in the lower half of its industry. The industry median Gross Margin % is 40.50. Ucap Cloud Information Technology Co's value of 40.33% is 0.4% below this benchmark. Historically, Ucap Cloud Information Technology Co's own Gross Margin % has ranged from 37.51 to 63.03 over the past decade. While the company's 10-year median is 48.67 vs. the industry median of 40.50, Ucap Cloud Information 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 a Software company?
The median Gross Margin % among Software companies is 40.50, based on 2,690 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. Ucap Cloud Information Technology Co's current Gross Margin % of 40.33% is 0.4% 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 Ucap Cloud Information Technology Co and its competitors. For the Software industry, the median Gross Margin % is 40.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ucap Cloud Information Technology Co's current Gross Margin % is 40.33%, which is 17% below median its own 10-year median of 48.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ucap Cloud Information Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Ucap Cloud Information Technology Co (SHSE:688228) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥38.47, compared to a current price of ¥62.68 — trading 62.9% above its estimated fair value. The current Gross Margin % is 40.33%, which is 17% below median its 10-year median of 48.67 and 0.4% below the Software industry median of 40.50. Ucap Cloud Information Technology Co's overall GF Score™ is 72/100 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 Ucap Cloud Information Technology Co (SHSE:688228), the current Gross Margin % is 40.33% as of Mar. 2026. 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 Ucap Cloud Information Technology Co (SHSE:688228) Overvalued in 2026?
Based on GuruFocus' analysis, Ucap Cloud Information Technology Co stock appears to be overvalued.
The current stock price of ¥62.68 is trading 62.9% above its estimated GF Value™ of ¥38.47.
GuruFocus considers Ucap Cloud Information Technology Co to be Significantly Overvalued.
Key valuation signals for SHSE:688228:
Gross Margin %: 40.33% (17% below median its 10-year median of 48.67)
GF Value™: ¥38.47 vs. price of ¥62.68 (62.9% above fair value)
Industry Position: 0.4% below the Software median (#1410 of 2690)
No single metric tells the full story. See the SHSE:688228 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ucap Cloud Information Technology Co Business Description
Ucap Cloud Information Technology Co Ltd is a domestic Internet content service platform and big data service provider. The company develops technologies related to digital content management and big data. It provides the construction, operation and maintenance of Internet content service platform and big data services.
72GF Score
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