Nido EducationASX:NDO -2.86%15 Gross Margin % is 87.24% as of Dec. 2025, which is 7% below its 10-year median of 93.34. GuruFocus rates ASX:NDO with a GF Score™ of 15/100. The stock has 8 warning signs investors should review. Among 242 Education companies, Nido Education ranks better than 97.11% 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
Nido Education had a gross margin of 87.24% 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.
Nido Education Gross Margin % Related Terms
Nido Education Gross Margin % Historical Data
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The historical data trend for Nido Education'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.
ASX:NDO vs EDU, TAL, LAUR: Gross Margin % Comparison
For the Education & Training Services subindustry, Nido 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.
Nido Education Gross Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, Nido Education's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nido 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.
Nido Education (ASX:NDO) has a Gross Margin % of 87.24% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Nido Education and its competitors. This is near median its historical median of 93.34. Over the past decade, Nido Education's Gross Margin % has ranged from 92.81 to 94.48. According to the industry distribution chart, Nido Education ranks #7 out of 242 companies in the Education industry, placing it in the top 2.9%.
Is Nido Education's Gross Margin % too high?
Nido Education's current Gross Margin % of 87.24% is near median its 10-year median of 93.34. Over the past 10 years, this metric has ranged from a low of 92.81 to a high of 94.48. The Education industry median Gross Margin % is 47.76. Nido Education's value of 87.24% is 82.7% above this industry median. Based on the distribution chart, Nido Education ranks #7 out of 242 companies in the Education industry, which is in the top quartile — a strong position relative to peers. Overall, Nido Education has a GF Score™ of 15/100, reflecting its overall financial health beyond just this single metric.
How does Nido Education's Gross Margin % compare to EDU and TAL?
According to the Education industry distribution chart, Nido Education ranks #7 out of 242 companies for Gross Margin %. This places Nido Education in the top 3% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 47.76. Nido Education's value of 87.24% is 82.7% above this benchmark. Historically, Nido Education's own Gross Margin % has ranged from 92.81 to 94.48 over the past decade. While the company's 10-year median is 93.34 vs. the industry median of 47.76, Nido 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 47.76, based on 242 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. Nido Education's current Gross Margin % of 87.24% is 82.7% 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 Nido Education and its competitors. For the Education industry, the median Gross Margin % is 47.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nido Education's current Gross Margin % is 87.24%, which is near median its own 10-year median of 93.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nido Education stock overvalued right now?
Nido Education (ASX:NDO) has a current Gross Margin % of 87.24%. The current Gross Margin % is 87.24%, which is near median its 10-year median of 93.34 and 82.7% above the Education industry median of 47.76. Nido Education's overall GF Score™ is 15/100 with 8 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 Nido Education (ASX:NDO), the current Gross Margin % is 87.24% 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.
Nido Education Ltd is a national owner, operator and manager of long-day early childhood education and care services. It offers exceptional education and care for children, from six weeks, through to school age, in a safe, comfortable, nurturing and peaceful environment. The Group operates in one segment being child care services.
15GF Score
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