Sound GroupSOGP +5.72%64 Gross Margin % is 29.40% as of Dec. 2025, which is 4% above its 10-year median of 28.25. GuruFocus rates SOGP with a GF Score™ of 64/100 and a GF Value™ of $5.85 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 497 Interactive Media companies, Sound Group ranks worse than 83.9% on this metric.
The historical rank and industry rank for Sound Group's Gross Margin % or its related term are showing as below:
SOGP'
s Gross Margin % Range Over the Past 10 Years
Min: 22.91 Med: 28.25 Max: 32.78
Current: 29.18
During the past 9 years, the highestGross Margin % of Sound Group was 32.78%. The lowest was 22.91%. And the median was 28.25%.
SOGP's Gross Margin % is ranked worse than 83.9% of 497
companies
in the Interactive Media industry
Industry Median: 62.58
vs SOGP: 29.18
Sound Group had a gross margin of 29.40% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Sound Group was 1.60% per year.
Sound Group (NAS:SOGP) 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
Sound Group had a gross margin of 29.40% 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.
Sound Group Gross Margin % Related Terms
Sound Group Gross Margin % Historical Data
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The historical data trend for Sound Group's Gross Margin % can be seen below:
* 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 Internet Content & Information subindustry, Sound Group'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.
Sound Group Gross Margin % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Sound Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sound Group'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.
Sound Group (SOGP) has a Gross Margin % of 29.40% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Sound Group and its competitors. This is near median its historical median of 28.25. Over the past decade, Sound Group's Gross Margin % has ranged from 22.91 to 32.78. According to the industry distribution chart, Sound Group ranks #417 out of 497 companies in the Interactive Media industry, placing it in the top 83.9%.
Is Sound Group's Gross Margin % too high?
Sound Group's current Gross Margin % of 29.40% is near median its 10-year median of 28.25. Over the past 10 years, this metric has ranged from a low of 22.91 to a high of 32.78. The Interactive Media industry median Gross Margin % is 62.58. Sound Group's value of 29.40% is 53% below this industry median. Based on the distribution chart, Sound Group ranks #417 out of 497 companies in the Interactive Media industry, which is in the bottom quartile relative to peers. Overall, Sound Group has a GF Score™ of 64/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sound Group's Gross Margin % compare to MNY and CCG?
According to the Interactive Media industry distribution chart, Sound Group ranks #417 out of 497 companies for Gross Margin %. This places Sound Group in the lower half of its industry. The industry median Gross Margin % is 62.58. Sound Group's value of 29.40% is 53% below this benchmark. Historically, Sound Group's own Gross Margin % has ranged from 22.91 to 32.78 over the past decade. While the company's 10-year median is 28.25 vs. the industry median of 62.58, Sound Group 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 an Interactive Media company?
The median Gross Margin % among Interactive Media companies is 62.58, based on 497 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. Sound Group's current Gross Margin % of 29.40% is 53% 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 Sound Group and its competitors. For the Interactive Media industry, the median Gross Margin % is 62.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sound Group's current Gross Margin % is 29.40%, which is near median its own 10-year median of 28.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sound Group stock overvalued right now?
Based on GuruFocus' analysis, Sound Group (SOGP) is currently considered Significantly Overvalued. The stock's GF Value™ is $5.85, compared to a current price of $10.91 — trading 86.5% above its estimated fair value. The current Gross Margin % is 29.40%, which is near median its 10-year median of 28.25 and 53% below the Interactive Media industry median of 62.58. Sound Group's overall GF Score™ is 64/100 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 Sound Group (SOGP), the current Gross Margin % is 29.40% 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.
Is Sound Group (SOGP) Overvalued in 2026?
Based on GuruFocus' analysis, Sound Group stock appears to be overvalued.
The current stock price of $10.91 is trading 86.5% above its estimated GF Value™ of $5.85.
GuruFocus considers Sound Group to be Significantly Overvalued.
Key valuation signals for SOGP:
Gross Margin %: 29.40% (near median its 10-year median of 28.25)
GF Value™: $5.85 vs. price of $10.91 (86.5% above fair value)
Industry Position: 53% below the Interactive Media median (#417 of 497)
No single metric tells the full story. See the SOGP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sound Group Inc is a world-wide, AI-powered audio company on a mission to help people connect and live happier. The group is leveraging its voice AI technologies and deep expertise in audio interaction. It is building a diverse ecosystem of intelligent audio products that caters to an overall user base. By integrating technology, products, and real-world data within a user-centric ecosystem, the Company generates a powerful growth flywheel that drives continuous innovation and accelerates world-wide expansion. Geographically, the group derives all its revenue from the PRC.
64GF Score
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