Four Seasons Education (Cayman)FEDU 62 Gross Margin % is 24.57% as of Feb. 2026, which is 40% below its 10-year median of 40.99. GuruFocus rates FEDU with a GF Score™ of 62/100 and a GF Value™ of $18.54 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 245 Education companies, Four Seasons Education (Cayman) ranks worse than 84.08% on this metric.
Four Seasons Education (Cayman) (NYSE:FEDU) 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
Four Seasons Education (Cayman) had a gross margin of 24.57% for the quarter that ended in Feb. 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.
Four Seasons Education (Cayman) Gross Margin % Related Terms
Four Seasons Education (Cayman) 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.
Four Seasons Education (Cayman) Gross Margin % Chart
FEDU vs LMMY, EDTK, RYET: Gross Margin % Comparison
For the Education & Training Services subindustry, Four Seasons Education (Cayman)'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.
Four Seasons Education (Cayman) Gross Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, Four Seasons Education (Cayman)'s Gross Margin % distribution charts can be found below:
* The bar in red indicates where Four Seasons Education (Cayman)'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.
Four Seasons Education (Cayman) (FEDU) has a Gross Margin % of 24.57% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Four Seasons Education (Cayman) and its competitors. This is 40% below median its historical median of 40.99. Over the past decade, Four Seasons Education (Cayman)'s Gross Margin % has ranged from 18.77 to 63.58. According to the industry distribution chart, Four Seasons Education (Cayman) ranks #206 out of 245 companies in the Education industry, placing it in the top 84.1%.
Is Four Seasons Education (Cayman)'s Gross Margin % too high?
Four Seasons Education (Cayman)'s current Gross Margin % of 24.57% is 40% below median its 10-year median of 40.99. Over the past 10 years, this metric has ranged from a low of 18.77 to a high of 63.58. The Education industry median Gross Margin % is 47.86. Four Seasons Education (Cayman)'s value of 24.57% is 48.7% below this industry median. Based on the distribution chart, Four Seasons Education (Cayman) ranks #206 out of 245 companies in the Education industry, which is in the bottom quartile relative to peers. Overall, Four Seasons Education (Cayman) has a GF Score™ of 62/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Four Seasons Education (Cayman)'s Gross Margin % compare to LMMY and EDTK?
According to the Education industry distribution chart, Four Seasons Education (Cayman) ranks #206 out of 245 companies for Gross Margin %. This places Four Seasons Education (Cayman) in the lower half of its industry. The industry median Gross Margin % is 47.86. Four Seasons Education (Cayman)'s value of 24.57% is 48.7% below this benchmark. Historically, Four Seasons Education (Cayman)'s own Gross Margin % has ranged from 18.77 to 63.58 over the past decade. While the company's 10-year median is 40.99 vs. the industry median of 47.86, Four Seasons Education (Cayman) 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 an Education company?
The median Gross Margin % among Education companies is 47.86, based on 245 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. Four Seasons Education (Cayman)'s current Gross Margin % of 24.57% is 48.7% 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 Four Seasons Education (Cayman) and its competitors. For the Education industry, the median Gross Margin % is 47.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Four Seasons Education (Cayman)'s current Gross Margin % is 24.57%, which is 40% below median its own 10-year median of 40.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Four Seasons Education (Cayman) stock overvalued right now?
Based on GuruFocus' analysis, Four Seasons Education (Cayman) (FEDU) is currently considered Possible Value Trap. The stock's GF Value™ is $18.54, compared to a current price of $10.50 — trading 43.4% below its estimated fair value. The current Gross Margin % is 24.57%, which is 40% below median its 10-year median of 40.99 and 48.7% below the Education industry median of 47.86. Four Seasons Education (Cayman)'s overall GF Score™ is 62/100 with 5 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 Four Seasons Education (Cayman) (FEDU), the current Gross Margin % is 24.57% as of Feb. 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 Four Seasons Education (Cayman) (FEDU) Overvalued in 2026?
Based on GuruFocus' analysis, Four Seasons Education (Cayman) stock appears to be undervalued.
The current stock price of $10.50 is trading 43.4% below its estimated GF Value™ of $18.54.
GuruFocus considers Four Seasons Education (Cayman) to be Possible Value Trap.
Key valuation signals for FEDU:
Gross Margin %: 24.57% (40% below median its 10-year median of 40.99)
GF Value™: $18.54 vs. price of $10.50 (43.4% below fair value)
Industry Position: 48.7% below the Education median (#206 of 245)
No single metric tells the full story. See the FEDU stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Four Seasons Education (Cayman) Business Description
Four Seasons Education (Cayman) Inc is a service provider of both tourism and education-related services in China. Its program, service, and product offerings mainly consist of enrichment learning programs, school-based tutoring product solutions, and training programs for teachers, study camps and learning trips for students, and travel agency services for all age groups. The Company provides a wide variety of learning and tourism services and is committed to maximizing a learner's potential through technology and content capabilities. The Group operates through three segments: Learning Services, which generates maximum revenue, Tourism Services, and Learning Technology and Content Solutions. The Group mainly operates in the PRC.
62GF Score
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