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Virnect CoXKRX:438700 +1.43%37 Gross Margin % is 17.77% as of Jun. 2026, which is 78% below its 10-year median of 81.64. GuruFocus rates XKRX:438700 with a GF Score™ of 37/100 and a GF Value™ of ₩7,454.44 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 2,685 Software companies, Virnect Co ranks worse than 62.91% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Virnect Co's Gross Profit for the
three
months ended in Jun. 2026 was ₩615 Mil. Virnect Co's Revenue for the
three
months ended in Jun. 2026 was ₩3,459 Mil. Therefore, Virnect Co's Gross Margin % for the quarter that ended in Jun. 2026 was 17.77%.
The historical rank and industry rank for Virnect Co's Gross Margin % or its related term are showing as below:
XKRX:438700'
s Gross Margin % Range Over the Past 10 Years
Min: 30.5 Med: 81.64 Max: 87.92
Current: 30.5
During the past 6 years, the highestGross Margin % of Virnect Co was 87.92%. The lowest was 30.50%. And the median was 81.64%.
XKRX:438700's Gross Margin % is ranked worse than 62.91% of 2685
companies
in the Software industry
Industry Median: 40.08
vs XKRX:438700: 30.50
Virnect Co had a gross margin of 17.77% for the quarter that ended in Jun. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Virnect Co was 0.00% per year.
Virnect Co (XKRX:438700) 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
Virnect Co had a gross margin of 17.77% for the quarter that ended in Jun. 2026 => No sustainable 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.
Virnect Co Gross Margin % Related Terms
Virnect Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Virnect Co'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.
XKRX:438700 vs CRM, SHOP, UBER: Gross Margin % Comparison
For the Software - Application subindustry, Virnect 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.
Virnect Co Gross Margin % vs Software Industry
For the Software industry and Technology sector, Virnect Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Virnect 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.
Virnect Co (XKRX:438700) has a Gross Margin % of 17.77% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Virnect Co and its competitors. This is 78% below median its historical median of 81.64. Over the past decade, Virnect Co's Gross Margin % has ranged from 30.50 to 87.92. According to the industry distribution chart, Virnect Co ranks #1689 out of 2685 companies in the Software industry, placing it in the top 62.9%.
Is Virnect Co's Gross Margin % too high?
Virnect Co's current Gross Margin % of 17.77% is 78% below median its 10-year median of 81.64. Over the past 10 years, this metric has ranged from a low of 30.50 to a high of 87.92. The Software industry median Gross Margin % is 40.08. Virnect Co's value of 17.77% is 55.7% below this industry median. Based on the distribution chart, Virnect Co ranks #1689 out of 2685 companies in the Software industry, which is below the industry midpoint. Overall, Virnect Co has a GF Score™ of 37/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Virnect Co's Gross Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, Virnect Co ranks #1689 out of 2685 companies for Gross Margin %. This places Virnect Co in the lower half of its industry. The industry median Gross Margin % is 40.08. Virnect Co's value of 17.77% is 55.7% below this benchmark. Historically, Virnect Co's own Gross Margin % has ranged from 30.50 to 87.92 over the past decade. While the company's 10-year median is 81.64 vs. the industry median of 40.08, Virnect Co 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 40.08, based on 2,685 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. Virnect Co's current Gross Margin % of 17.77% is 55.7% 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 Virnect Co and its competitors. For the Software industry, the median Gross Margin % is 40.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Virnect Co's current Gross Margin % is 17.77%, which is 78% below median its own 10-year median of 81.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Virnect Co stock overvalued right now?
Based on GuruFocus' analysis, Virnect Co (XKRX:438700) is currently considered Possible Value Trap. The stock's GF Value™ is ₩7,454.44, compared to a current price of ₩1,841.00 — trading 75.3% below its estimated fair value. The current Gross Margin % is 17.77%, which is 78% below median its 10-year median of 81.64 and 55.7% below the Software industry median of 40.08. Virnect Co's overall GF Score™ is 37/100 with 6 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 Virnect Co (XKRX:438700), the current Gross Margin % is 17.77% as of Jun. 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 Virnect Co (XKRX:438700) Overvalued in 2026?
Based on GuruFocus' analysis, Virnect Co stock appears to be undervalued.
The current stock price of ₩1,841.00 is trading 75.3% below its estimated GF Value™ of ₩7,454.44.
GuruFocus considers Virnect Co to be Possible Value Trap.
Key valuation signals for XKRX:438700:
Gross Margin %: 17.77% (78% below median its 10-year median of 81.64)
GF Value™: ₩7,454.44 vs. price of ₩1,841.00 (75.3% below fair value)
Industry Position: 55.7% below the Software median (#1689 of 2685)
No single metric tells the full story. See the XKRX:438700 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Virnect Co Ltd is a technology company that leads XR technology trends and specializes in developing XR solutions that can solve problems in the industrial field. It provides products and services for 3D real-time visualization, virtual and augmented reality, remote monitoring and operation, and telecommunication access. Its product offering comprises VIRNECT Remote, VIRNECT Make, VIRNECT View, VIRNECT Twin, VIRNECT Track, and XR Devices.
37GF Score
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