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Chen Lin Education Group Holdings (HKSE:01593) 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
Chen Lin Education Group Holdings had a gross margin of 24.74% 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.
Chen Lin Education Group Holdings Gross Margin % Related Terms
Chen Lin Education Group 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.
Chen Lin Education Group Holdings Gross Margin % Chart
HKSE:01593 vs EDU, TAL, LAUR: Gross Margin % Comparison
For the Education & Training Services subindustry, Chen Lin Education Group 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.
Chen Lin Education Group Holdings Gross Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, Chen Lin Education Group Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Chen Lin Education Group 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.
Chen Lin Education Group Holdings (HKSE:01593) has a Gross Margin % of 24.74% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Chen Lin Education Group Holdings and its competitors. This is 62% below median its historical median of 65.15. Over the past decade, Chen Lin Education Group Holdings' Gross Margin % has ranged from 24.23 to 71.32. According to the industry distribution chart, Chen Lin Education Group Holdings ranks #210 out of 244 companies in the Education industry, placing it in the top 86.1%.
Is Chen Lin Education Group Holdings' Gross Margin % too high?
Chen Lin Education Group Holdings' current Gross Margin % of 24.74% is 62% below median its 10-year median of 65.15. Over the past 10 years, this metric has ranged from a low of 24.23 to a high of 71.32. The Education industry median Gross Margin % is 48.11. Chen Lin Education Group Holdings' value of 24.74% is 48.6% below this industry median. Based on the distribution chart, Chen Lin Education Group Holdings ranks #210 out of 244 companies in the Education industry, which is in the bottom quartile relative to peers. Overall, Chen Lin Education Group Holdings has a GF Score™ of 70/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Chen Lin Education Group Holdings' Gross Margin % compare to EDU and TAL?
According to the Education industry distribution chart, Chen Lin Education Group Holdings ranks #210 out of 244 companies for Gross Margin %. This places Chen Lin Education Group Holdings in the lower half of its industry. The industry median Gross Margin % is 48.11. Chen Lin Education Group Holdings' value of 24.74% is 48.6% below this benchmark. Historically, Chen Lin Education Group Holdings' own Gross Margin % has ranged from 24.23 to 71.32 over the past decade. While the company's 10-year median is 65.15 vs. the industry median of 48.11, Chen Lin Education Group 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 an Education company?
The median Gross Margin % among Education companies is 48.11, based on 244 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. Chen Lin Education Group Holdings's current Gross Margin % of 24.74% is 48.6% 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 Chen Lin Education Group Holdings and its competitors. For the Education industry, the median Gross Margin % is 48.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chen Lin Education Group Holdings's current Gross Margin % is 24.74%, which is 62% below median its own 10-year median of 65.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chen Lin Education Group Holdings stock overvalued right now?
Based on GuruFocus' analysis, Chen Lin Education Group Holdings (HKSE:01593) is currently considered Possible Value Trap. The stock's GF Value™ is HK$1.63, compared to a current price of HK$1.04 — trading 36.2% below its estimated fair value. The current Gross Margin % is 24.74%, which is 62% below median its 10-year median of 65.15 and 48.6% below the Education industry median of 48.11. Chen Lin Education Group Holdings' overall GF Score™ is 70/100 with 10 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 Chen Lin Education Group Holdings (HKSE:01593), the current Gross Margin % is 24.74% 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 Chen Lin Education Group Holdings (HKSE:01593) Overvalued in 2026?
Based on GuruFocus' analysis, Chen Lin Education Group Holdings stock appears to be undervalued.
The current stock price of HK$1.04 is trading 36.2% below its estimated GF Value™ of HK$1.63.
GuruFocus considers Chen Lin Education Group Holdings to be Possible Value Trap.
Key valuation signals for HKSE:01593:
Gross Margin %: 24.74% (62% below median its 10-year median of 65.15)
GF Value™: HK$1.63 vs. price of HK$1.04 (36.2% below fair value)
Industry Position: 48.6% below the Education median (#210 of 244)
No single metric tells the full story. See the HKSE:01593 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chen Lin Education Group Holdings Ltd is engaged in the provision of private tertiary education services in the PRC. It specializes in full-system applied undergraduate education, vocational education, and quality high school education. The group derives revenue from Tuition fees, Boarding fees, Internship management fees, Tutoring and program management services, and others.
70GF Score
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