Guotai Epoint Sofware CoSHSE:688232 -1.04%73 Gross Margin % is 57.38% as of Mar. 2026, which is 13% below its 10-year median of 65.98. GuruFocus rates SHSE:688232 with a GF Score™ of 73/100 and a GF Value™ of ¥22.45 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 2,681 Software companies, Guotai Epoint Sofware Co ranks better than 69.56% on this metric.
SHSE:688232's Gross Margin % is ranked better than 69.56% of 2681
companies
in the Software industry
Industry Median: 40.41
vs SHSE:688232: 59.12
Guotai Epoint Sofware Co had a gross margin of 57.38% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Guotai Epoint Sofware Co was -3.00% per year.
Guotai Epoint Sofware Co (SHSE:688232) 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
Guotai Epoint Sofware Co had a gross margin of 57.38% 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.
Guotai Epoint Sofware Co Gross Margin % Related Terms
Guotai Epoint Sofware 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.
SHSE:688232 vs UBER, SHOP, CRM: Gross Margin % Comparison
For the Software - Application subindustry, Guotai Epoint Sofware 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.
Guotai Epoint Sofware Co Gross Margin % vs Software Industry
For the Software industry and Technology sector, Guotai Epoint Sofware Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Guotai Epoint Sofware 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.
Guotai Epoint Sofware Co (SHSE:688232) has a Gross Margin % of 57.38% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Guotai Epoint Sofware Co and its competitors. This is 13% below median its historical median of 65.98. Over the past decade, Guotai Epoint Sofware Co's Gross Margin % has ranged from 57.82 to 68.53. According to the industry distribution chart, Guotai Epoint Sofware Co ranks #816 out of 2681 companies in the Software industry, placing it in the top 30.4%.
Is Guotai Epoint Sofware Co's Gross Margin % too high?
Guotai Epoint Sofware Co's current Gross Margin % of 57.38% is 13% below median its 10-year median of 65.98. Over the past 10 years, this metric has ranged from a low of 57.82 to a high of 68.53. The Software industry median Gross Margin % is 40.41. Guotai Epoint Sofware Co's value of 57.38% is 42% above this industry median. Based on the distribution chart, Guotai Epoint Sofware Co ranks #816 out of 2681 companies in the Software industry, which is above the industry midpoint. Overall, Guotai Epoint Sofware Co has a GF Score™ of 73/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Guotai Epoint Sofware Co's Gross Margin % compare to UBER and SHOP?
According to the Software industry distribution chart, Guotai Epoint Sofware Co ranks #816 out of 2681 companies for Gross Margin %. This puts Guotai Epoint Sofware Co in the upper half of its industry. The industry median Gross Margin % is 40.41. Guotai Epoint Sofware Co's value of 57.38% is 42% above this benchmark. Historically, Guotai Epoint Sofware Co's own Gross Margin % has ranged from 57.82 to 68.53 over the past decade. While the company's 10-year median is 65.98 vs. the industry median of 40.41, Guotai Epoint Sofware 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 Software company?
The median Gross Margin % among Software companies is 40.41, based on 2,681 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. Guotai Epoint Sofware Co's current Gross Margin % of 57.38% is 42% 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 Guotai Epoint Sofware Co and its competitors. For the Software industry, the median Gross Margin % is 40.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Guotai Epoint Sofware Co's current Gross Margin % is 57.38%, which is 13% below median its own 10-year median of 65.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Guotai Epoint Sofware Co stock overvalued right now?
Based on GuruFocus' analysis, Guotai Epoint Sofware Co (SHSE:688232) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥22.45, compared to a current price of ¥18.10 — trading 19.4% below its estimated fair value. The current Gross Margin % is 57.38%, which is 13% below median its 10-year median of 65.98 and 42% above the Software industry median of 40.41. Guotai Epoint Sofware Co's overall GF Score™ is 73/100 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 Guotai Epoint Sofware Co (SHSE:688232), the current Gross Margin % is 57.38% 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 Guotai Epoint Sofware Co (SHSE:688232) Overvalued in 2026?
Based on GuruFocus' analysis, Guotai Epoint Sofware Co stock appears to be undervalued.
The current stock price of ¥18.10 is trading 19.4% below its estimated GF Value™ of ¥22.45.
GuruFocus considers Guotai Epoint Sofware Co to be Modestly Undervalued.
Key valuation signals for SHSE:688232:
Gross Margin %: 57.38% (13% below median its 10-year median of 65.98)
GF Value™: ¥22.45 vs. price of ¥18.10 (19.4% below fair value)
Industry Position: 42% above the Software median (#816 of 2681)
No single metric tells the full story. See the SHSE:688232 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Guotai Epoint Sofware Co Ltd provides software-centric smart overall solutions for the three sub-fields of smart recruitment, smart government and digital construction in smart cities.
73GF Score
Get the complete analysis for SHSE:688232
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
SHSE:688232 has been successfully added to your 
