LexinFintech HoldingsFRA:1LFA +0.61%60 Gross Margin % is 25.22% as of Mar. 2026, which is 26% below its 10-year median of 34.27. GuruFocus rates FRA:1LFA with a GF Score™ of 60/100 and a GF Value™ of €2.63 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 387 Credit Services companies, LexinFintech Holdings ranks worse than 75.19% 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
LexinFintech Holdings had a gross margin of 25.22% 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.
LexinFintech Holdings Gross Margin % Related Terms
LexinFintech Holdings Gross Margin % Historical Data
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The historical data trend for LexinFintech 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.
FRA:1LFA vs TROO, LPRO, RM: Gross Margin % Comparison
For the Credit Services subindustry, LexinFintech 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.
LexinFintech Holdings Gross Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, LexinFintech Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where LexinFintech 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.
LexinFintech Holdings (FRA:1LFA) has a Gross Margin % of 25.22% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on LexinFintech Holdings and its competitors. This is 26% below median its historical median of 34.27. Over the past decade, LexinFintech Holdings' Gross Margin % has ranged from 13.88 to 50.52. According to the industry distribution chart, LexinFintech Holdings ranks #291 out of 387 companies in the Credit Services industry, placing it in the top 75.2%.
Is LexinFintech Holdings' Gross Margin % too high?
LexinFintech Holdings' current Gross Margin % of 25.22% is 26% below median its 10-year median of 34.27. Over the past 10 years, this metric has ranged from a low of 13.88 to a high of 50.52. The Credit Services industry median Gross Margin % is 51.88. LexinFintech Holdings' value of 25.22% is 51.4% below this industry median. Based on the distribution chart, LexinFintech Holdings ranks #291 out of 387 companies in the Credit Services industry, which is in the bottom quartile relative to peers. Overall, LexinFintech Holdings has a GF Score™ of 60/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does LexinFintech Holdings' Gross Margin % compare to TROO and LPRO?
According to the Credit Services industry distribution chart, LexinFintech Holdings ranks #291 out of 387 companies for Gross Margin %. This places LexinFintech Holdings in the lower half of its industry. The industry median Gross Margin % is 51.88. LexinFintech Holdings' value of 25.22% is 51.4% below this benchmark. Historically, LexinFintech Holdings' own Gross Margin % has ranged from 13.88 to 50.52 over the past decade. While the company's 10-year median is 34.27 vs. the industry median of 51.88, LexinFintech Holdings 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 51.88, based on 387 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. LexinFintech Holdings's current Gross Margin % of 25.22% is 51.4% 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 LexinFintech Holdings and its competitors. For the Credit Services industry, the median Gross Margin % is 51.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LexinFintech Holdings's current Gross Margin % is 25.22%, which is 26% below median its own 10-year median of 34.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LexinFintech Holdings stock overvalued right now?
Based on GuruFocus' analysis, LexinFintech Holdings (FRA:1LFA) is currently considered Significantly Undervalued. The stock's GF Value™ is €2.63, compared to a current price of €1.66 — trading 36.9% below its estimated fair value. The current Gross Margin % is 25.22%, which is 26% below median its 10-year median of 34.27 and 51.4% below the Credit Services industry median of 51.88. LexinFintech Holdings' overall GF Score™ is 60/100 with 4 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 LexinFintech Holdings (FRA:1LFA), the current Gross Margin % is 25.22% 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 LexinFintech Holdings (FRA:1LFA) Overvalued in 2026?
Based on GuruFocus' analysis, LexinFintech Holdings stock appears to be undervalued.
The current stock price of €1.66 is trading 36.9% below its estimated GF Value™ of €2.63.
GuruFocus considers LexinFintech Holdings to be Significantly Undervalued.
Key valuation signals for FRA:1LFA:
Gross Margin %: 25.22% (26% below median its 10-year median of 34.27)
GF Value™: €2.63 vs. price of €1.66 (36.9% below fair value)
Industry Position: 51.4% below the Credit Services median (#291 of 387)
No single metric tells the full story. See the FRA:1LFA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
LexinFintech Holdings Ltd is an online consumer finance platform and a technology-driven service provider in China. The group is engaged in online direct sales services and online consumer finance services for its customers in the PRC. Geographically, it derives revenue from China.
60GF Score
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