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XJ International Holdings Co (HKSE:01765) 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
XJ International Holdings Co had a gross margin of 48.29% for the quarter that ended in Feb. 2026 => 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.
XJ International Holdings Co Gross Margin % Related Terms
XJ International Holdings 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.
HKSE:01765 vs EDU, TAL, LAUR: Gross Margin % Comparison
For the Education & Training Services subindustry, XJ International Holdings 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.
XJ International Holdings Co Gross Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, XJ International Holdings Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where XJ International Holdings 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.
XJ International Holdings Co (HKSE:01765) has a Gross Margin % of 48.29% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on XJ International Holdings Co and its competitors. This is near median its historical median of 46.38. Over the past decade, XJ International Holdings Co's Gross Margin % has ranged from 42.11 to 50.66. According to the industry distribution chart, XJ International Holdings Co ranks #135 out of 244 companies in the Education industry, placing it in the top 55.3%.
Is XJ International Holdings Co's Gross Margin % too high?
XJ International Holdings Co's current Gross Margin % of 48.29% is near median its 10-year median of 46.38. Over the past 10 years, this metric has ranged from a low of 42.11 to a high of 50.66. The Education industry median Gross Margin % is 47.93. XJ International Holdings Co's value of 48.29% is 0.8% above this industry median. Based on the distribution chart, XJ International Holdings Co ranks #135 out of 244 companies in the Education industry, which is below the industry midpoint. Overall, XJ International Holdings Co has a GF Score™ of 58/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does XJ International Holdings Co's Gross Margin % compare to EDU and TAL?
According to the Education industry distribution chart, XJ International Holdings Co ranks #135 out of 244 companies for Gross Margin %. This places XJ International Holdings Co in the lower half of its industry. The industry median Gross Margin % is 47.93. XJ International Holdings Co's value of 48.29% is 0.8% above this benchmark. Historically, XJ International Holdings Co's own Gross Margin % has ranged from 42.11 to 50.66 over the past decade. While the company's 10-year median is 46.38 vs. the industry median of 47.93, XJ International Holdings Co 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 an Education company?
The median Gross Margin % among Education companies is 47.93, 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. XJ International Holdings Co's current Gross Margin % of 48.29% is 0.8% 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 XJ International Holdings Co and its competitors. For the Education industry, the median Gross Margin % is 47.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. XJ International Holdings Co's current Gross Margin % is 48.29%, which is near median its own 10-year median of 46.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is XJ International Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, XJ International Holdings Co (HKSE:01765) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.25, compared to a current price of HK$0.13 — trading 47.6% below its estimated fair value. The current Gross Margin % is 48.29%, which is near median its 10-year median of 46.38 and 0.8% above the Education industry median of 47.93. XJ International Holdings Co's overall GF Score™ is 58/100 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 XJ International Holdings Co (HKSE:01765), the current Gross Margin % is 48.29% 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 XJ International Holdings Co (HKSE:01765) Overvalued in 2026?
Based on GuruFocus' analysis, XJ International Holdings Co stock appears to be undervalued.
The current stock price of HK$0.13 is trading 47.6% below its estimated GF Value™ of HK$0.25.
GuruFocus considers XJ International Holdings Co to be Possible Value Trap.
Key valuation signals for HKSE:01765:
Gross Margin %: 48.29% (near median its 10-year median of 46.38)
GF Value™: HK$0.25 vs. price of HK$0.13 (47.6% below fair value)
Industry Position: 0.8% above the Education median (#135 of 244)
No single metric tells the full story. See the HKSE:01765 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
XJ International Holdings Co Ltd formerly Hope Education Group Co Ltd is an investment holding company engaged in providing educational services. The company operates higher educational schools which include universities and junior colleges. Some of its colleges are Southwest Jiaotong University Hope Colleges, Business College of Guizhou University of Finance and Economics, Sichuan TOP IT Vocational Institute, and One Technical College among others. Its operating segments are the Domestic education which is the key revenue generating segment, global education segment and others. The company generates its revenue from tuition fees, boarding fees, sales of books and daily necessities, and others. Geographically company also operates in Malaysia, Thailand and Hungary.
58GF Score
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