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Shanghai Information2 SoftwareSHSE:688435 82 Gross Margin % is 74.45% as of Mar. 2026, which is 12% below its 10-year median of 84.29. GuruFocus rates SHSE:688435 with a GF Score™ of 82/100 and a GF Value™ of ¥34.69 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 2,690 Software companies, Shanghai Information2 Software ranks better than 91.56% on this metric.
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
Shanghai Information2 Software had a gross margin of 74.45% 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.
Shanghai Information2 Software Gross Margin % Related Terms
Shanghai Information2 Software 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:688435 vs UBER, SHOP, CRM: Gross Margin % Comparison
For the Software - Application subindustry, Shanghai Information2 Software'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.
Shanghai Information2 Software Gross Margin % vs Software Industry
For the Software industry and Technology sector, Shanghai Information2 Software's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Shanghai Information2 Software'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.
Shanghai Information2 Software (SHSE:688435) has a Gross Margin % of 74.45% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Shanghai Information2 Software and its competitors. This is 12% below median its historical median of 84.29. Over the past decade, Shanghai Information2 Software's Gross Margin % has ranged from 71.48 to 86.85. According to the industry distribution chart, Shanghai Information2 Software ranks #227 out of 2690 companies in the Software industry, placing it in the top 8.4%.
Is Shanghai Information2 Software's Gross Margin % too high?
Shanghai Information2 Software's current Gross Margin % of 74.45% is 12% below median its 10-year median of 84.29. Over the past 10 years, this metric has ranged from a low of 71.48 to a high of 86.85. The Software industry median Gross Margin % is 40.50. Shanghai Information2 Software's value of 74.45% is 83.8% above this industry median. Based on the distribution chart, Shanghai Information2 Software ranks #227 out of 2690 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Shanghai Information2 Software has a GF Score™ of 82/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Shanghai Information2 Software's Gross Margin % compare to UBER and SHOP?
According to the Software industry distribution chart, Shanghai Information2 Software ranks #227 out of 2690 companies for Gross Margin %. This places Shanghai Information2 Software in the top 8% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.50. Shanghai Information2 Software's value of 74.45% is 83.8% above this benchmark. Historically, Shanghai Information2 Software's own Gross Margin % has ranged from 71.48 to 86.85 over the past decade. While the company's 10-year median is 84.29 vs. the industry median of 40.50, Shanghai Information2 Software 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 40.50, 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. Shanghai Information2 Software's current Gross Margin % of 74.45% is 83.8% 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 Shanghai Information2 Software 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. Shanghai Information2 Software's current Gross Margin % is 74.45%, which is 12% below median its own 10-year median of 84.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanghai Information2 Software stock overvalued right now?
Based on GuruFocus' analysis, Shanghai Information2 Software (SHSE:688435) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥34.69, compared to a current price of ¥26.08 — trading 24.8% below its estimated fair value. The current Gross Margin % is 74.45%, which is 12% below median its 10-year median of 84.29 and 83.8% above the Software industry median of 40.50. Shanghai Information2 Software's overall GF Score™ is 82/100 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 Shanghai Information2 Software (SHSE:688435), the current Gross Margin % is 74.45% 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 Shanghai Information2 Software (SHSE:688435) Overvalued in 2026?
Based on GuruFocus' analysis, Shanghai Information2 Software stock appears to be undervalued.
The current stock price of ¥26.08 is trading 24.8% below its estimated GF Value™ of ¥34.69.
GuruFocus considers Shanghai Information2 Software to be Modestly Undervalued.
Key valuation signals for SHSE:688435:
Gross Margin %: 74.45% (12% below median its 10-year median of 84.29)
GF Value™: ¥34.69 vs. price of ¥26.08 (24.8% below fair value)
Industry Position: 83.8% above the Software median (#227 of 2690)
No single metric tells the full story. See the SHSE:688435 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shanghai Information2 Software Business Description
Shanghai Information2 Software Inc is a technology company focusing on disaster recovery and business applications. The company provides real-time data replication and continuous data protection technology to provide continuous protection and rapid recovery for all kinds of key businesses in the physical, virtual or cloud computing platforms.
82GF Score
Get the complete analysis for SHSE:688435
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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