American Public EducationAPEI +1.77%69 Gross Margin % is 57.29% as of Mar. 2026, which is 4% below its 10-year median of 59.85. GuruFocus rates APEI with a GF Score™ of 69/100 and a GF Value™ of $20.36 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 245 Education companies, American Public Education ranks better than 64.08% on this metric.
American Public Education (NAS:APEI) 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 Public Education had a gross margin of 57.29% for the quarter that ended in Mar. 2026 => 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 Public Education Gross Margin % Related Terms
American Public Education 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.
APEI vs PXED, AFYA, KLC: Gross Margin % Comparison
For the Education & Training Services subindustry, American Public Education'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 Public Education Gross Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, American Public Education's Gross Margin % distribution charts can be found below:
* The bar in red indicates where American Public Education'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 Public Education (APEI) has a Gross Margin % of 57.29% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on American Public Education and its competitors. This is near median its historical median of 59.85. Over the past decade, American Public Education's Gross Margin % has ranged from 51.23 to 62.63. According to the industry distribution chart, American Public Education ranks #88 out of 245 companies in the Education industry, placing it in the top 35.9%.
Is American Public Education's Gross Margin % too high?
American Public Education's current Gross Margin % of 57.29% is near median its 10-year median of 59.85. Over the past 10 years, this metric has ranged from a low of 51.23 to a high of 62.63. The Education industry median Gross Margin % is 47.86. American Public Education's value of 57.29% is 19.7% above this industry median. Based on the distribution chart, American Public Education ranks #88 out of 245 companies in the Education industry, which is above the industry midpoint. Overall, American Public Education has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does American Public Education's Gross Margin % compare to PXED and AFYA?
According to the Education industry distribution chart, American Public Education ranks #88 out of 245 companies for Gross Margin %. This puts American Public Education in the upper half of its industry. The industry median Gross Margin % is 47.86. American Public Education's value of 57.29% is 19.7% above this benchmark. Historically, American Public Education's own Gross Margin % has ranged from 51.23 to 62.63 over the past decade. While the company's 10-year median is 59.85 vs. the industry median of 47.86, American Public Education 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 Education company?
The median Gross Margin % among Education companies is 47.86, based on 245 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 Public Education's current Gross Margin % of 57.29% is 19.7% 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 Public Education and its competitors. For the Education industry, the median Gross Margin % is 47.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Public Education's current Gross Margin % is 57.29%, which is near median its own 10-year median of 59.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is American Public Education stock overvalued right now?
Based on GuruFocus' analysis, American Public Education (APEI) is currently considered Significantly Overvalued. The stock's GF Value™ is $20.36, compared to a current price of $54.51 — trading 167.7% above its estimated fair value. The current Gross Margin % is 57.29%, which is near median its 10-year median of 59.85 and 19.7% above the Education industry median of 47.86. American Public Education's overall GF Score™ is 69/100 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 American Public Education (APEI), the current Gross Margin % is 57.29% as of Mar. 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 American Public Education (APEI) Overvalued in 2026?
Based on GuruFocus' analysis, American Public Education stock appears to be overvalued.
The current stock price of $54.51 is trading 167.7% above its estimated GF Value™ of $20.36.
GuruFocus considers American Public Education to be Significantly Overvalued.
Key valuation signals for APEI:
Gross Margin %: 57.29% (near median its 10-year median of 59.85)
GF Value™: $20.36 vs. price of $54.51 (167.7% above fair value)
Industry Position: 19.7% above the Education median (#88 of 245)
No single metric tells the full story. See the APEI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
American Public Education Inc provides online and campus based postsecondary education including various undergraduate and graduate degree programs. The fields of study include business administration, health science, technology, criminal justice, education, liberal arts, national security, military studies, intelligence, and homeland security. There are three reporting segments: the American Public University segment which is the key revenue generator, provides online postsecondary education as a distance-learning, graduate-level institution for military officers seeking a degree in military studies; the Rasmussen University Segment and the Hondros College of Nursing segment. The revenue is generated from net course registrations and enrollment, tuition rate, net tuition, and other fees.
69GF Score
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