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Genertec Universal Medical Group Co (FRA:5UM) 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
Genertec Universal Medical Group Co had a gross margin of 32.98% for the quarter that ended in Dec. 2025 => 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.
Genertec Universal Medical Group Co Gross Margin % Related Terms
Genertec Universal Medical Group Co 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.
Genertec Universal Medical Group Co Gross Margin % Chart
For the Credit Services subindustry, Genertec Universal Medical 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.
Genertec Universal Medical Group Co Gross Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Genertec Universal Medical Group Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Genertec Universal Medical Group Co'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.
Genertec Universal Medical Group Co (FRA:5UM) has a Gross Margin % of 32.98% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Genertec Universal Medical Group Co and its competitors. This is 22% below median its historical median of 42.04. Over the past decade, Genertec Universal Medical Group Co's Gross Margin % has ranged from 33.49 to 64.24. According to the industry distribution chart, Genertec Universal Medical Group Co ranks #276 out of 391 companies in the Credit Services industry, placing it in the top 70.6%.
Is Genertec Universal Medical Group Co's Gross Margin % too high?
Genertec Universal Medical Group Co's current Gross Margin % of 32.98% is 22% below median its 10-year median of 42.04. Over the past 10 years, this metric has ranged from a low of 33.49 to a high of 64.24. The Credit Services industry median Gross Margin % is 51.69. Genertec Universal Medical Group Co's value of 32.98% is 36.2% below this industry median. Based on the distribution chart, Genertec Universal Medical Group Co ranks #276 out of 391 companies in the Credit Services industry, which is below the industry midpoint. Overall, Genertec Universal Medical Group Co has a GF Score™ of 48/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Genertec Universal Medical Group Co's Gross Margin % compare to V and MA?
According to the Credit Services industry distribution chart, Genertec Universal Medical Group Co ranks #276 out of 391 companies for Gross Margin %. This places Genertec Universal Medical Group Co in the lower half of its industry. The industry median Gross Margin % is 51.69. Genertec Universal Medical Group Co's value of 32.98% is 36.2% below this benchmark. Historically, Genertec Universal Medical Group Co's own Gross Margin % has ranged from 33.49 to 64.24 over the past decade. While the company's 10-year median is 42.04 vs. the industry median of 51.69, Genertec Universal Medical Group Co 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 51.69, based on 391 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. Genertec Universal Medical Group Co's current Gross Margin % of 32.98% is 36.2% 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 Genertec Universal Medical Group Co and its competitors. For the Credit Services industry, the median Gross Margin % is 51.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Genertec Universal Medical Group Co's current Gross Margin % is 32.98%, which is 22% below median its own 10-year median of 42.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Genertec Universal Medical Group Co stock overvalued right now?
Based on GuruFocus' analysis, Genertec Universal Medical Group Co (FRA:5UM) is currently considered Fairly Valued. The stock's GF Value™ is €0.48, compared to a current price of €0.48 — trading 0.4% above its estimated fair value. The current Gross Margin % is 32.98%, which is 22% below median its 10-year median of 42.04 and 36.2% below the Credit Services industry median of 51.69. Genertec Universal Medical Group Co's overall GF Score™ is 48/100 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 Genertec Universal Medical Group Co (FRA:5UM), the current Gross Margin % is 32.98% as of Dec. 2025. 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 Genertec Universal Medical Group Co (FRA:5UM) Overvalued in 2026?
Based on GuruFocus' analysis, Genertec Universal Medical Group Co stock appears to be overvalued.
The current stock price of €0.48 is trading 0.4% above its estimated GF Value™ of €0.48.
GuruFocus considers Genertec Universal Medical Group Co to be Fairly Valued.
Key valuation signals for FRA:5UM:
Gross Margin %: 32.98% (22% below median its 10-year median of 42.04)
GF Value™: €0.48 vs. price of €0.48 (0.4% above fair value)
Industry Position: 36.2% below the Credit Services median (#276 of 391)
No single metric tells the full story. See the FRA:5UM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Genertec Universal Medical Group Co Ltd is principally engaged in providing financing to its customers under finance lease arrangements, the provision of advisory services, the sale of medical equipment as well as leases under operating lease arrangements, and the provision of other services. The group has two business segments namely The finance business comprises direct finance leasing, sale-and-leaseback, factoring, operating leases, and advisory services; and Healthcare business comprises includes hospital group business, healthcare technology business and specialty business. Geographically, it derives a majority of its revenue from Mainland China.
48GF Score
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