RC365 HoldingSTU:L2G -33.33% Gross Margin % is 39.30% as of Sep. 2025, which is 57% below its 10-year median of 91.18. The stock has 6 warning signs investors should review. Among 2,681 Software companies, RC365 Holding ranks better than 68.3% 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
RC365 Holding had a gross margin of 39.30% for the quarter that ended in Sep. 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.
RC365 Holding Gross Margin % Related Terms
RC365 Holding Gross Margin % Historical Data
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The historical data trend for RC365 Holding'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.
STU:L2G vs MSFT, ORCL, PLTR: Gross Margin % Comparison
For the Software - Infrastructure subindustry, RC365 Holding'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.
RC365 Holding Gross Margin % vs Software Industry
For the Software industry and Technology sector, RC365 Holding's Gross Margin % distribution charts can be found below:
* The bar in red indicates where RC365 Holding'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.
RC365 Holding (STU:L2G) has a Gross Margin % of 39.30% as of Sep. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on RC365 Holding and its competitors. This is 57% below median its historical median of 91.18. Over the past decade, RC365 Holding's Gross Margin % has ranged from 57.82 to 99.27. According to the industry distribution chart, RC365 Holding ranks #850 out of 2681 companies in the Software industry, placing it in the top 31.7%.
Is RC365 Holding's Gross Margin % too high?
RC365 Holding's current Gross Margin % of 39.30% is 57% below median its 10-year median of 91.18. Over the past 10 years, this metric has ranged from a low of 57.82 to a high of 99.27. The Software industry median Gross Margin % is 40.41. RC365 Holding's value of 39.30% is 2.7% below this industry median. Based on the distribution chart, RC365 Holding ranks #850 out of 2681 companies in the Software industry, which is above the industry midpoint.
How does RC365 Holding's Gross Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, RC365 Holding ranks #850 out of 2681 companies for Gross Margin %. This puts RC365 Holding in the upper half of its industry. The industry median Gross Margin % is 40.41. RC365 Holding's value of 39.30% is 2.7% below this benchmark. Historically, RC365 Holding's own Gross Margin % has ranged from 57.82 to 99.27 over the past decade. While the company's 10-year median is 91.18 vs. the industry median of 40.41, RC365 Holding 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 40.41, 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. RC365 Holding's current Gross Margin % of 39.30% is 2.7% 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 RC365 Holding 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. RC365 Holding's current Gross Margin % is 39.30%, which is 57% below median its own 10-year median of 91.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is RC365 Holding stock overvalued right now?
Based on GuruFocus' analysis, RC365 Holding (STU:L2G) is currently considered Possible Value Trap. The stock's GF Value™ is €0.03, compared to a current price of €0.02 — trading 46.7% below its estimated fair value. The current Gross Margin % is 39.30%, which is 57% below median its 10-year median of 91.18 and 2.7% below the Software industry median of 40.41. 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 RC365 Holding (STU:L2G), the current Gross Margin % is 39.30% as of Sep. 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.
RC365 Holding PLC focuses on providing IT Support and Security Services, Payment Gateway Solutions (both online and offline), Prepaid Card Issuance and Support Services, as well as Computer Graphic Design and Animation services to clients located in the ASEAN region, the UK, and Europe.
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