The historical rank and industry rank for American Education Center's Gross Margin % or its related term are showing as below:
AMCT's Gross Margin % is not ranked *
in the Business Services industry.
Industry Median: 34.46 * Ranked among companies with meaningful Gross Margin % only.
American Education Center had a gross margin of 82.81% for the quarter that ended in Jun. 2021 => Durable competitive advantage
American Education Center (OTCPK:AMCT) 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
American Education Center had a gross margin of 82.81% for the quarter that ended in Jun. 2021 => 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.
American Education Center Gross Margin % Related Terms
American Education Center 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.
AMCT vs MSYN, QPRC, AMMJ: Gross Margin % Comparison
For the Consulting Services subindustry, American Education Center'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.
American Education Center Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, American Education Center's Gross Margin % distribution charts can be found below:
* The bar in red indicates where American Education Center'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.
American Education Center (AMCT) has a Gross Margin % of 82.81% as of Jun. 2021. Gross margin is the ratio of total gross profit to net sales. View historical data on American Education Center and its competitors.
Is American Education Center's Gross Margin % too high?
American Education Center's current Gross Margin % is 82.81%. The Business Services industry median Gross Margin % is 34.46. American Education Center's value of 82.81% is 140.3% above this industry median.
How does American Education Center's Gross Margin % compare to MSYN and QPRC?
American Education Center's Gross Margin % of 82.81% can be compared against companies in the Business Services industry. The industry median Gross Margin % is 34.46. American Education Center's value of 82.81% is 140.3% above this benchmark. 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 Business Services company?
The median Gross Margin % among Business Services companies is 34.46, based on 1,007 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. American Education Center's current Gross Margin % of 82.81% is 140.3% 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 American Education Center and its competitors. For the Business Services industry, the median Gross Margin % is 34.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Education Center's current Gross Margin % is 82.81%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is American Education Center stock overvalued right now?
American Education Center (AMCT) has a current Gross Margin % of 82.81%. The current Gross Margin % is 82.81% and 140.3% above the Business Services industry median of 34.46. 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 American Education Center (AMCT), the current Gross Margin % is 82.81% as of Jun. 2021. 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.
American Education Center Inc is a United States-based company engaged in the provision of consulting services. Its Consulting services include Placement Advisory Services, Career Advisory Services, Student & Family Advisory Services, and Other Advisory Services. The company operates in two segments: the AEC New York segment and the AEC BVI segment. The majority of the revenue is generated from the AEC New York segment, which caters to middle-class families in China for quality education and work experiences in the United States and delivers customized high school and college placement and career advisory services to Chinese students wishing to study in the USA.
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