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Scholar Education GroupHKSE:01769 +2.07%53 Gross Margin % is 1.00% as of Dec. 2025, which is 97% below its 10-year median of 36.33. GuruFocus rates HKSE:01769 with a GF Score™ of 53/100 and a GF Value™ of HK$5.80 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 244 Education companies, Scholar Education Group ranks worse than 91.39% on this metric.
Scholar Education Group (HKSE:01769) 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
Scholar Education Group had a gross margin of 1.00% for the quarter that ended in Dec. 2025 => No sustainable 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.
Scholar Education Group Gross Margin % Related Terms
Scholar Education Group 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:01769 vs EDU, TAL, LAUR: Gross Margin % Comparison
For the Education & Training Services subindustry, Scholar Education Group'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.
Scholar Education Group Gross Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, Scholar Education Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Scholar Education Group'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.
Scholar Education Group (HKSE:01769) has a Gross Margin % of 1.00% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Scholar Education Group and its competitors. This is 97% below median its historical median of 36.33. Over the past decade, Scholar Education Group's Gross Margin % has ranged from 19.52 to 42.72. According to the industry distribution chart, Scholar Education Group ranks #223 out of 244 companies in the Education industry, placing it in the top 91.4%.
Is Scholar Education Group's Gross Margin % too high?
Scholar Education Group's current Gross Margin % of 1.00% is 97% below median its 10-year median of 36.33. Over the past 10 years, this metric has ranged from a low of 19.52 to a high of 42.72. The Education industry median Gross Margin % is 47.93. Scholar Education Group's value of 1.00% is 97.9% below this industry median. Based on the distribution chart, Scholar Education Group ranks #223 out of 244 companies in the Education industry, which is in the bottom quartile relative to peers. Overall, Scholar Education Group has a GF Score™ of 53/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Scholar Education Group's Gross Margin % compare to EDU and TAL?
According to the Education industry distribution chart, Scholar Education Group ranks #223 out of 244 companies for Gross Margin %. This places Scholar Education Group in the lower half of its industry. The industry median Gross Margin % is 47.93. Scholar Education Group's value of 1.00% is 97.9% below this benchmark. Historically, Scholar Education Group's own Gross Margin % has ranged from 19.52 to 42.72 over the past decade. While the company's 10-year median is 36.33 vs. the industry median of 47.93, Scholar Education Group 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 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. Scholar Education Group's current Gross Margin % of 1.00% is 97.9% 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 Scholar Education Group 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. Scholar Education Group's current Gross Margin % is 1.00%, which is 97% below median its own 10-year median of 36.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Scholar Education Group stock overvalued right now?
Based on GuruFocus' analysis, Scholar Education Group (HKSE:01769) is currently considered Possible Value Trap. The stock's GF Value™ is HK$5.80, compared to a current price of HK$0.99 — trading 83% below its estimated fair value. The current Gross Margin % is 1.00%, which is 97% below median its 10-year median of 36.33 and 97.9% below the Education industry median of 47.93. Scholar Education Group's overall GF Score™ is 53/100 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 Scholar Education Group (HKSE:01769), the current Gross Margin % is 1.00% 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 Scholar Education Group (HKSE:01769) Overvalued in 2026?
Based on GuruFocus' analysis, Scholar Education Group stock appears to be undervalued.
The current stock price of HK$0.99 is trading 83% below its estimated GF Value™ of HK$5.80.
GuruFocus considers Scholar Education Group to be Possible Value Trap.
Key valuation signals for HKSE:01769:
Gross Margin %: 1.00% (97% below median its 10-year median of 36.33)
GF Value™: HK$5.80 vs. price of HK$0.99 (83% below fair value)
Industry Position: 97.9% below the Education median (#223 of 244)
No single metric tells the full story. See the HKSE:01769 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Scholar Education Group is a private education service provider in South China. The Group's principal activities mainly include the provision of private education services, educational tour business, and international courses. Its programmes comprise liberal education courses in respect of art, sports, painting, performance art, calligraphy, scientific literacy, Le Xue and Guo Xue, logic training, and Miaowei international literacy. In addition, the Group provides after-school care services, through which students receive after-school care services from professional teachers in a safe and comfortable environment. The Group generates revenue from private education services and others.
53GF Score
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