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U Consumer FinanceCAI:VALU -2.09%28 Gross Margin % is 50.15% as of Dec. 2025, which is at its 10-year median of 50.15. GuruFocus rates CAI:VALU with a GF Score™ of 28/100. The stock has 6 warning signs investors should review. Among 391 Credit Services companies, U Consumer Finance ranks worse than 56.78% on this metric.
U Consumer Finance (CAI:VALU) 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
U Consumer Finance had a gross margin of 50.15% 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.
U Consumer Finance Gross Margin % Related Terms
U Consumer Finance Gross Margin % Historical Data
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The historical data trend for U Consumer Finance'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.
For the Credit Services subindustry, U Consumer Finance'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.
U Consumer Finance Gross Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, U Consumer Finance's Gross Margin % distribution charts can be found below:
* The bar in red indicates where U Consumer Finance'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.
U Consumer Finance (CAI:VALU) has a Gross Margin % of 50.15% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on U Consumer Finance and its competitors. This is near median its historical median of 50.15. Over the past decade, U Consumer Finance's Gross Margin % has ranged from 45.62 to 50.15. According to the industry distribution chart, U Consumer Finance ranks #222 out of 391 companies in the Credit Services industry, placing it in the top 56.8%.
Is U Consumer Finance's Gross Margin % too high?
U Consumer Finance's current Gross Margin % of 50.15% is near median its 10-year median of 50.15. Over the past 10 years, this metric has ranged from a low of 45.62 to a high of 50.15. The Credit Services industry median Gross Margin % is 51.30. U Consumer Finance's value of 50.15% is 2.2% below this industry median. Based on the distribution chart, U Consumer Finance ranks #222 out of 391 companies in the Credit Services industry, which is below the industry midpoint. Overall, U Consumer Finance has a GF Score™ of 28/100, reflecting its overall financial health beyond just this single metric.
How does U Consumer Finance's Gross Margin % compare to V and MA?
According to the Credit Services industry distribution chart, U Consumer Finance ranks #222 out of 391 companies for Gross Margin %. This places U Consumer Finance in the lower half of its industry. The industry median Gross Margin % is 51.30. U Consumer Finance's value of 50.15% is 2.2% below this benchmark. Historically, U Consumer Finance's own Gross Margin % has ranged from 45.62 to 50.15 over the past decade. While the company's 10-year median is 50.15 vs. the industry median of 51.30, U Consumer Finance 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 Credit Services company?
The median Gross Margin % among Credit Services companies is 51.30, based on 391 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. U Consumer Finance's current Gross Margin % of 50.15% is 2.2% 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 U Consumer Finance and its competitors. For the Credit Services industry, the median Gross Margin % is 51.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. U Consumer Finance's current Gross Margin % is 50.15%, which is near median its own 10-year median of 50.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is U Consumer Finance stock overvalued right now?
U Consumer Finance (CAI:VALU) has a current Gross Margin % of 50.15%. The current Gross Margin % is 50.15%, which is near median its 10-year median of 50.15 and 2.2% below the Credit Services industry median of 51.30. U Consumer Finance's overall GF Score™ is 28/100 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 U Consumer Finance (CAI:VALU), the current Gross Margin % is 50.15% 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.
U Consumer Finance known by Its Brand Name Valu, is the universal financial technology powerhouse, offering a suite of financial services to individuals and businesses.
28GF Score
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