X-Legend Entertainment CoTPE:4994 +1.54%74 Gross Margin % is 65.30% as of Dec. 2025, which is 6% above its 10-year median of 61.89. GuruFocus rates TPE:4994 with a GF Score™ of 74/100 and a GF Value™ of NT$71.46 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 497 Interactive Media companies, X-Legend Entertainment Co ranks better than 55.13% on this metric.
X-Legend Entertainment Co (TPE:4994) 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
X-Legend Entertainment Co had a gross margin of 65.30% for the quarter that ended in Dec. 2025 => 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.
X-Legend Entertainment Co Gross Margin % Related Terms
X-Legend Entertainment 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.
TPE:4994 vs NTES, EA, TTWO: Gross Margin % Comparison
For the Electronic Gaming & Multimedia subindustry, X-Legend Entertainment 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.
X-Legend Entertainment Co Gross Margin % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, X-Legend Entertainment Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where X-Legend Entertainment 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.
X-Legend Entertainment Co (TPE:4994) has a Gross Margin % of 65.30% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on X-Legend Entertainment Co and its competitors. This is near median its historical median of 61.89. Over the past decade, X-Legend Entertainment Co's Gross Margin % has ranged from 50.15 to 89.90. According to the industry distribution chart, X-Legend Entertainment Co ranks #223 out of 497 companies in the Interactive Media industry, placing it in the top 44.9%.
Is X-Legend Entertainment Co's Gross Margin % too high?
X-Legend Entertainment Co's current Gross Margin % of 65.30% is near median its 10-year median of 61.89. Over the past 10 years, this metric has ranged from a low of 50.15 to a high of 89.90. The Interactive Media industry median Gross Margin % is 62.58. X-Legend Entertainment Co's value of 65.30% is 4.3% above this industry median. Based on the distribution chart, X-Legend Entertainment Co ranks #223 out of 497 companies in the Interactive Media industry, which is above the industry midpoint. Overall, X-Legend Entertainment Co has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does X-Legend Entertainment Co's Gross Margin % compare to NTES and EA?
According to the Interactive Media industry distribution chart, X-Legend Entertainment Co ranks #223 out of 497 companies for Gross Margin %. This puts X-Legend Entertainment Co in the upper half of its industry. The industry median Gross Margin % is 62.58. X-Legend Entertainment Co's value of 65.30% is 4.3% above this benchmark. Historically, X-Legend Entertainment Co's own Gross Margin % has ranged from 50.15 to 89.90 over the past decade. While the company's 10-year median is 61.89 vs. the industry median of 62.58, X-Legend Entertainment 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 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. X-Legend Entertainment Co's current Gross Margin % of 65.30% is 4.3% 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 X-Legend Entertainment Co 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. X-Legend Entertainment Co's current Gross Margin % is 65.30%, which is near median its own 10-year median of 61.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is X-Legend Entertainment Co stock overvalued right now?
Based on GuruFocus' analysis, X-Legend Entertainment Co (TPE:4994) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$71.46, compared to a current price of NT$92.10 — trading 28.9% above its estimated fair value. The current Gross Margin % is 65.30%, which is near median its 10-year median of 61.89 and 4.3% above the Interactive Media industry median of 62.58. X-Legend Entertainment Co's overall GF Score™ is 74/100 with 5 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 X-Legend Entertainment Co (TPE:4994), the current Gross Margin % is 65.30% 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 X-Legend Entertainment Co (TPE:4994) Overvalued in 2026?
Based on GuruFocus' analysis, X-Legend Entertainment Co stock appears to be overvalued.
The current stock price of NT$92.10 is trading 28.9% above its estimated GF Value™ of NT$71.46.
GuruFocus considers X-Legend Entertainment Co to be Modestly Overvalued.
Key valuation signals for TPE:4994:
Gross Margin %: 65.30% (near median its 10-year median of 61.89)
GF Value™: NT$71.46 vs. price of NT$92.10 (28.9% above fair value)
Industry Position: 4.3% above the Interactive Media median (#223 of 497)
No single metric tells the full story. See the TPE:4994 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
X-Legend Entertainment Co Ltd is a Taiwan-based company that engages in the development of online and mobile games. It offers multiplayer online role-playing games, casual and puzzle games, and data and software services. The group is focused on its business in Taiwan and Japan.
74GF Score
Get the complete analysis for TPE:4994
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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