ECARX HoldingsECX +3.48%69 Gross Margin % is 21.44% as of Mar. 2026, which is 17% below its 10-year median of 25.79. GuruFocus rates ECX with a GF Score™ of 69/100 and a GF Value™ of $2.18 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 1,313 Vehicles & Parts companies, ECARX Holdings ranks worse than 52.55% 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
ECARX Holdings had a gross margin of 21.44% for the quarter that ended in Mar. 2026 => 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.
ECARX Holdings Gross Margin % Related Terms
ECARX Holdings Gross Margin % Historical Data
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The historical data trend for ECARX Holdings'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 Auto Parts subindustry, ECARX Holdings'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.
ECARX Holdings Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, ECARX Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where ECARX Holdings'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.
ECARX Holdings (ECX) has a Gross Margin % of 21.44% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on ECARX Holdings and its competitors. This is 17% below median its historical median of 25.79. Over the past decade, ECARX Holdings' Gross Margin % has ranged from 19.02 to 29.40. According to the industry distribution chart, ECARX Holdings ranks #690 out of 1313 companies in the Vehicles & Parts industry, placing it in the top 52.6%.
Is ECARX Holdings' Gross Margin % too high?
ECARX Holdings' current Gross Margin % of 21.44% is 17% below median its 10-year median of 25.79. Over the past 10 years, this metric has ranged from a low of 19.02 to a high of 29.40. The Vehicles & Parts industry median Gross Margin % is 19.84. ECARX Holdings' value of 21.44% is 8.1% above this industry median. Based on the distribution chart, ECARX Holdings ranks #690 out of 1313 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, ECARX Holdings has a GF Score™ of 69/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does ECARX Holdings' Gross Margin % compare to SES and MNRO?
According to the Vehicles & Parts industry distribution chart, ECARX Holdings ranks #690 out of 1313 companies for Gross Margin %. This places ECARX Holdings in the lower half of its industry. The industry median Gross Margin % is 19.84. ECARX Holdings' value of 21.44% is 8.1% above this benchmark. Historically, ECARX Holdings' own Gross Margin % has ranged from 19.02 to 29.40 over the past decade. While the company's 10-year median is 25.79 vs. the industry median of 19.84, ECARX Holdings 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 a Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.84, based on 1,313 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. ECARX Holdings's current Gross Margin % of 21.44% is 8.1% 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 ECARX Holdings and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ECARX Holdings's current Gross Margin % is 21.44%, which is 17% below median its own 10-year median of 25.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ECARX Holdings stock overvalued right now?
Based on GuruFocus' analysis, ECARX Holdings (ECX) is currently considered Possible Value Trap. The stock's GF Value™ is $2.18, compared to a current price of $1.20 — trading 45.2% below its estimated fair value. The current Gross Margin % is 21.44%, which is 17% below median its 10-year median of 25.79 and 8.1% above the Vehicles & Parts industry median of 19.84. ECARX Holdings' overall GF Score™ is 69/100 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 ECARX Holdings (ECX), the current Gross Margin % is 21.44% 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 ECARX Holdings (ECX) Overvalued in 2026?
Based on GuruFocus' analysis, ECARX Holdings stock appears to be undervalued.
The current stock price of $1.20 is trading 45.2% below its estimated GF Value™ of $2.18.
GuruFocus considers ECARX Holdings to be Possible Value Trap.
Key valuation signals for ECX:
Gross Margin %: 21.44% (17% below median its 10-year median of 25.79)
GF Value™: $2.18 vs. price of $1.20 (45.2% below fair value)
Industry Position: 8.1% above the Vehicles & Parts median (#690 of 1313)
No single metric tells the full story. See the ECX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ECARX Holdings Inc is engaged in the sales of system-on-chip core modules, automotive computing platform products, and software stacks as well as the provision of research and development services in the Peoples Republic of China. The companies core products include infotainment head units, digital cockpits, vehicle chip-set solutions, a core operating system, and an integrated software stack. Beyond this, ECARX is developing a full-stack automotive computing platform. It is engaged in automotive intelligence and networking.
69GF Score
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