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Wuhan Dameng Database CoSHSE:688692 +1.23%45 Gross Margin % is 96.56% as of Mar. 2026, which is 7% above its 10-year median of 90.57. GuruFocus rates SHSE:688692 with a GF Score™ of 45/100. The stock has 3 warning signs investors should review. Among 2,683 Software companies, Wuhan Dameng Database Co ranks better than 97.84% on this metric.
Wuhan Dameng Database Co (SHSE:688692) 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
Wuhan Dameng Database Co had a gross margin of 96.56% 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.
Wuhan Dameng Database Co Gross Margin % Related Terms
Wuhan Dameng Database 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:688692 vs UBER, SHOP, CRM: Gross Margin % Comparison
For the Software - Application subindustry, Wuhan Dameng Database 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.
Wuhan Dameng Database Co Gross Margin % vs Software Industry
For the Software industry and Technology sector, Wuhan Dameng Database Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Wuhan Dameng Database 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.
Wuhan Dameng Database Co (SHSE:688692) has a Gross Margin % of 96.56% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Wuhan Dameng Database Co and its competitors. This is near median its historical median of 90.57. Over the past decade, Wuhan Dameng Database Co's Gross Margin % has ranged from 80.30 to 96.12. According to the industry distribution chart, Wuhan Dameng Database Co ranks #58 out of 2683 companies in the Software industry, placing it in the top 2.2%.
Is Wuhan Dameng Database Co's Gross Margin % too high?
Wuhan Dameng Database Co's current Gross Margin % of 96.56% is near median its 10-year median of 90.57. Over the past 10 years, this metric has ranged from a low of 80.30 to a high of 96.12. The Software industry median Gross Margin % is 40.47. Wuhan Dameng Database Co's value of 96.56% is 138.6% above this industry median. Based on the distribution chart, Wuhan Dameng Database Co ranks #58 out of 2683 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Wuhan Dameng Database Co has a GF Score™ of 45/100, reflecting its overall financial health beyond just this single metric.
How does Wuhan Dameng Database Co's Gross Margin % compare to UBER and SHOP?
According to the Software industry distribution chart, Wuhan Dameng Database Co ranks #58 out of 2683 companies for Gross Margin %. This places Wuhan Dameng Database Co in the top 2% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.47. Wuhan Dameng Database Co's value of 96.56% is 138.6% above this benchmark. Historically, Wuhan Dameng Database Co's own Gross Margin % has ranged from 80.30 to 96.12 over the past decade. While the company's 10-year median is 90.57 vs. the industry median of 40.47, Wuhan Dameng Database 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 40.47, based on 2,683 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. Wuhan Dameng Database Co's current Gross Margin % of 96.56% is 138.6% 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 Wuhan Dameng Database Co and its competitors. For the Software industry, the median Gross Margin % is 40.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Wuhan Dameng Database Co's current Gross Margin % is 96.56%, which is near median its own 10-year median of 90.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Wuhan Dameng Database Co stock overvalued right now?
Wuhan Dameng Database Co (SHSE:688692) has a current Gross Margin % of 96.56%. The current Gross Margin % is 96.56%, which is near median its 10-year median of 90.57 and 138.6% above the Software industry median of 40.47. Wuhan Dameng Database Co's overall GF Score™ is 45/100 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 Wuhan Dameng Database Co (SHSE:688692), the current Gross Margin % is 96.56% 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.
AddressNo. 999 Gaoxin Avenue, Floors 16-19, Building C3, Future Technology Building, East Lake New Technology Development Zone, Hubei Province, Wuhan, CHN, 430000
Wuhan Dameng Database Co Ltd is engaged in providing a series of database products and related technical services such as various database software and cluster software, cloud computing and big data products, and database all-in-one machines. Its products include DM8 & Cluster Software, DMRWC, DMDataWatch etc. Its products are used in industries including finance, energy, aviation and communications.
45GF Score
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