China United Insurance Service (OTCPK:CUII) 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
China United Insurance Service had a gross margin of 34.18% for the quarter that ended in Mar. 2023 => Competition eroding margins
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.
China United Insurance Service Gross Margin % Related Terms
China United Insurance Service 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.
China United Insurance Service Gross Margin % Chart
CUII vs RELI, TIRX, HUIZ: Gross Margin % Comparison
For the Insurance Brokers subindustry, China United Insurance Service'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.
China United Insurance Service Gross Margin % vs Insurance Industry
For the Insurance industry and Financial Services sector, China United Insurance Service's Gross Margin % distribution charts can be found below:
* The bar in red indicates where China United Insurance Service'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.
China United Insurance Service (CUII) has a Gross Margin % of 34.18% as of Mar. 2023. Gross margin is the ratio of total gross profit to net sales. View historical data on China United Insurance Service and its competitors.
Is China United Insurance Service's Gross Margin % too high?
China United Insurance Service's current Gross Margin % is 34.18%. The Insurance industry median Gross Margin % is 42.38. China United Insurance Service's value of 34.18% is 19.3% below this industry median. Overall, China United Insurance Service has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does China United Insurance Service's Gross Margin % compare to RELI and TIRX?
China United Insurance Service's Gross Margin % of 34.18% can be compared against companies in the Insurance industry. The industry median Gross Margin % is 42.38. China United Insurance Service's value of 34.18% is 19.3% below 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 an Insurance company?
The median Gross Margin % among Insurance companies is 42.38, based on 59 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. China United Insurance Service's current Gross Margin % of 34.18% is 19.3% 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 China United Insurance Service and its competitors. For the Insurance industry, the median Gross Margin % is 42.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China United Insurance Service's current Gross Margin % is 34.18%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China United Insurance Service stock overvalued right now?
China United Insurance Service (CUII) has a current Gross Margin % of 34.18%. The current Gross Margin % is 34.18% and 19.3% below the Insurance industry median of 42.38. China United Insurance Service's overall GF Score™ is 12/100. 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 China United Insurance Service (CUII), the current Gross Margin % is 34.18% as of Mar. 2023. 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.
China United Insurance Service Business Description
China United Insurance Service Inc through its subsidiaries provides insurance brokerage and agency services across the People's Republic of China. The company offers client-specific life insurance products and property and casualty insurance products. It generates majority of its revenues from Taiwan followed by the People's Republic of China. Property and Casualty Insurance Products: Law Broker's main property and casualty insurance products are automobile insurance, casualty insurance, and liability insurance. The property and casualty insurance products Law Broker distributes can be further classified into the categories: automobile insurance, casualty insurance, and liability insurance.
12GF Score
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