ECXJ (CXJ Group Co) Gross Margin %: 45.04% (As of Feb. 2011)


What is CXJ Group Co Gross Margin %?

CXJ Group Co ECXJ -16.67% Gross Margin % is 45.04% as of Feb. 2011.

Gross Margin % is calculated as gross profit divided by its revenue. CXJ Group Co's Gross Profit for the three months ended in Feb. 2011 was $0.70 Mil. CXJ Group Co's Revenue for the three months ended in Feb. 2011 was $1.56 Mil. Therefore, CXJ Group Co's Gross Margin % for the quarter that ended in Feb. 2011 was 45.04%.


The historical rank and industry rank for CXJ Group Co's Gross Margin % or its related term are showing as below:


ECXJ's Gross Margin % is not ranked *
in the Retail - Cyclical industry.
Industry Median: 36.23
* Ranked among companies with meaningful Gross Margin % only.

CXJ Group Co had a gross margin of 45.04% for the quarter that ended in Feb. 2011 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for CXJ Group Co was 0.00% per year.


CXJ Group Co  (OTCPK:ECXJ) 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

CXJ Group Co had a gross margin of 45.04% for the quarter that ended in Feb. 2011 => 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.


CXJ Group Co Gross Margin % Related Terms


CXJ Group Co Gross Margin % Historical Data

* Premium members only.

The historical data trend for CXJ Group Co'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.

CXJ Group Co Gross Margin % Chart

CXJ Group Co Annual Data
Trend May03 May04 May05 May06 May07 May08 May09 May10
Gross Margin %
Get a 7-Day Free Trial 41.92 23.72 45.65 54.78 41.78

CXJ Group Co Quarterly Data
May06 Aug06 Nov06 Feb07 May07 Aug07 Nov07 Feb08 May08 Aug08 Nov08 Feb09 May09 Aug09 Nov09 Feb10 May10 Aug10 Nov10 Feb11
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 39.16 35.14 38.27 51.98 45.04

ECXJ vs HAS, POOL, PTON: Gross Margin % Comparison

For the Specialty Retail subindustry, CXJ Group Co'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.


CXJ Group Co Gross Margin % vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, CXJ Group Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where CXJ Group Co's Gross Margin % falls into.



CXJ Group Co Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

CXJ Group Co's Gross Margin for the fiscal year that ended in May. 2010 is calculated as

Gross Margin % (A: May. 2010 )=Gross Profit (A: May. 2010 ) / Revenue (A: May. 2010 )
=4.7 / 11.308
=(Revenue - Cost of Goods Sold) / Revenue
=(11.308 - 6.584) / 11.308
=41.78 %

CXJ Group Co's Gross Margin for the quarter that ended in Feb. 2011 is calculated as


Gross Margin % (Q: Feb. 2011 )=Gross Profit (Q: Feb. 2011 ) / Revenue (Q: Feb. 2011 )
=0.7 / 1.561
=(Revenue - Cost of Goods Sold) / Revenue
=(1.561 - 0.858) / 1.561
=45.04 %

* 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.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 45.04% mean?
CXJ Group Co (ECXJ) has a Gross Margin % of 45.04% as of Feb. 2011. Gross margin is the ratio of total gross profit to net sales. View historical data on CXJ Group Co and its competitors.
Is CXJ Group Co's Gross Margin % too high?
CXJ Group Co's current Gross Margin % is 45.04%. The Retail - Cyclical industry median Gross Margin % is 36.23. CXJ Group Co's value of 45.04% is 24.3% above this industry median.
How does CXJ Group Co's Gross Margin % compare to HAS and POOL?
CXJ Group Co's Gross Margin % of 45.04% can be compared against companies in the Retail - Cyclical industry. The industry median Gross Margin % is 36.23. CXJ Group Co's value of 45.04% is 24.3% above 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 a Retail - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.23, based on 1,117 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. CXJ Group Co's current Gross Margin % of 45.04% is 24.3% 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 CXJ Group Co and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CXJ Group Co's current Gross Margin % is 45.04%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CXJ Group Co stock overvalued right now?
CXJ Group Co (ECXJ) has a current Gross Margin % of 45.04%. The current Gross Margin % is 45.04% and 24.3% above the Retail - Cyclical industry median of 36.23. 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 CXJ Group Co (ECXJ), the current Gross Margin % is 45.04% as of Feb. 2011. 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.

CXJ Group Co Business Description

Address Xintiandi Business Center, No. 7 Anqiaogang Road, Room 401, 4th Floor, East Block Building 5, Gongshu District, Zhejiang Province, Hangzhou City, CHN, 310017
CXJ Group Co Ltd is engaged in the wholesale of automobile aftermarket products and provision of auto detailing store consultancy services. It operates through sales of automobile aftermarket products, authorization fees on its brand name Chejiangling / Teenage Hero Car, and consultancy services for auto detailing stores, including professional training, store standardization, employee training, and ERP system services for information management and operations. Its segments include Brand Name Management Fees and Services, which generate maximum revenue by providing the brand name Chejiangling / Teenage Hero Car to customers, who are authorized to operate their workshops under the Chejiangling / Teenage Hero Car brand name; Motor Oil & Auto Parts; and Exhaust Gas Cleaner and Others.