Guotai Junan International Holdings (OTCPK:GUOTF) 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
Guotai Junan International Holdings had a gross margin of 79.66% for the quarter that ended in Dec. 2025 => 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.
Guotai Junan International Holdings Gross Margin % Related Terms
Guotai Junan International Holdings 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.
Guotai Junan International Holdings Gross Margin % Chart
For the Capital Markets subindustry, Guotai Junan International 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.
Guotai Junan International Holdings Gross Margin % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Guotai Junan International Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Guotai Junan International 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.
Guotai Junan International Holdings (GUOTF) has a Gross Margin % of 79.66% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Guotai Junan International Holdings and its competitors. This is near median its historical median of 76.46. Over the past decade, Guotai Junan International Holdings' Gross Margin % has ranged from 63.66 to 80.20. According to the industry distribution chart, Guotai Junan International Holdings ranks #119 out of 617 companies in the Capital Markets industry, placing it in the top 19.3%.
Is Guotai Junan International Holdings' Gross Margin % too high?
Guotai Junan International Holdings' current Gross Margin % of 79.66% is near median its 10-year median of 76.46. Over the past 10 years, this metric has ranged from a low of 63.66 to a high of 80.20. The Capital Markets industry median Gross Margin % is 48.30. Guotai Junan International Holdings' value of 79.66% is 64.9% above this industry median. Based on the distribution chart, Guotai Junan International Holdings ranks #119 out of 617 companies in the Capital Markets industry, which is in the top quartile — a strong position relative to peers. Overall, Guotai Junan International Holdings has a GF Score™ of 78/100, reflecting its overall financial health beyond just this single metric.
How does Guotai Junan International Holdings' Gross Margin % compare to MS and GS?
According to the Capital Markets industry distribution chart, Guotai Junan International Holdings ranks #119 out of 617 companies for Gross Margin %. This places Guotai Junan International Holdings in the top 19% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 48.30. Guotai Junan International Holdings' value of 79.66% is 64.9% above this benchmark. Historically, Guotai Junan International Holdings' own Gross Margin % has ranged from 63.66 to 80.20 over the past decade. While the company's 10-year median is 76.46 vs. the industry median of 48.30, Guotai Junan International 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 Capital Markets company?
The median Gross Margin % among Capital Markets companies is 48.30, based on 617 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. Guotai Junan International Holdings's current Gross Margin % of 79.66% is 64.9% 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 Guotai Junan International Holdings and its competitors. For the Capital Markets industry, the median Gross Margin % is 48.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Guotai Junan International Holdings's current Gross Margin % is 79.66%, which is near median its own 10-year median of 76.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Guotai Junan International Holdings stock overvalued right now?
Guotai Junan International Holdings (GUOTF) has a current Gross Margin % of 79.66%. The stock's GF Value™ is $0.31, compared to a current price of $0.33 — trading 6.5% above its estimated fair value. The current Gross Margin % is 79.66%, which is near median its 10-year median of 76.46 and 64.9% above the Capital Markets industry median of 48.30. Guotai Junan International Holdings' overall GF Score™ is 78/100 with 8 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 Guotai Junan International Holdings (GUOTF), the current Gross Margin % is 79.66% 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 Guotai Junan International Holdings (GUOTF) Overvalued in 2026?
Based on GuruFocus' analysis, Guotai Junan International Holdings stock appears to be overvalued.
The current stock price of $0.33 is trading 6.5% above its estimated GF Value™ of $0.31.
Key valuation signals for GUOTF:
Gross Margin %: 79.66% (near median its 10-year median of 76.46)
GF Value™: $0.31 vs. price of $0.33 (6.5% above fair value)
Industry Position: 64.9% above the Capital Markets median (#119 of 617)
No single metric tells the full story. See the GUOTF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Guotai Junan International Holdings Business Description
Guotai Junan International Holdings Ltd is an investment holding company engaged in a range of financial services. Its operating segments comprise Wealth Management, which provides brokerage, margin financing, and related services to individuals, SMEs, and family offices; Institutional Investor Services, which include market making, structured products, and financing solutions for corporations and financial institutions; Corporate Finance Services, which offer advisory, placing, and underwriting services for debt and equity securities; Investment Management, which provides asset and fund management along with investments in financial instruments; and Others, which mainly includes rental income and information channel services. The Company derives the majority of its revenue from Hong Kong.
78GF Score
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