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
Dashan Education Holdings had a gross margin of 41.54% for the quarter that ended in Jun. 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.
Dashan Education Holdings Gross Margin % Related Terms
Dashan Education 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.
HKSE:09986 vs EDU, TAL, GHC: Gross Margin % Comparison
For the Education & Training Services subindustry, Dashan Education 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.
Dashan Education Holdings Gross Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, Dashan Education Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Dashan Education 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.
Dashan Education Holdings (HKSE:09986) has a Gross Margin % of 41.54% as of Jun. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Dashan Education Holdings and its competitors. This is 26% above median its historical median of 33.01. Over the past decade, Dashan Education Holdings' Gross Margin % has ranged from 16.42 to 44.47.
Is Dashan Education Holdings' Gross Margin % too high?
Dashan Education Holdings' current Gross Margin % of 41.54% is 26% above median its 10-year median of 33.01. Over the past 10 years, this metric has ranged from a low of 16.42 to a high of 44.47. The Education industry median Gross Margin % is 48.11. Dashan Education Holdings' value of 41.54% is 13.6% below this industry median. Overall, Dashan Education Holdings has a GF Score™ of 55/100, reflecting its overall financial health beyond just this single metric.
How does Dashan Education Holdings' Gross Margin % compare to EDU and TAL?
Dashan Education Holdings' Gross Margin % of 41.54% can be compared against companies in the Education industry. The industry median Gross Margin % is 48.11. Dashan Education Holdings' value of 41.54% is 13.6% below this benchmark. Historically, Dashan Education Holdings' own Gross Margin % has ranged from 16.42 to 44.47 over the past decade. While the company's 10-year median is 33.01 vs. the industry median of 48.11, Dashan Education 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 242 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. Dashan Education Holdings's current Gross Margin % of 41.54% is 13.6% 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 Dashan Education 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. Dashan Education Holdings's current Gross Margin % is 41.54%, which is 26% above median its own 10-year median of 33.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dashan Education Holdings stock overvalued right now?
Dashan Education Holdings (HKSE:09986) has a current Gross Margin % of 41.54%. The stock's GF Value™ is HK$4.83, compared to a current price of HK$1.88 — trading 61.1% below its estimated fair value. The current Gross Margin % is 41.54%, which is 26% above median its 10-year median of 33.01 and 13.6% below the Education industry median of 48.11. Dashan Education Holdings' overall GF Score™ is 55/100 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 Dashan Education Holdings (HKSE:09986), the current Gross Margin % is 41.54% as of Jun. 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 Dashan Education Holdings (HKSE:09986) Overvalued in 2026?
Based on GuruFocus' analysis, Dashan Education Holdings stock appears to be undervalued.
The current stock price of HK$1.88 is trading 61.1% below its estimated GF Value™ of HK$4.83.
Key valuation signals for HKSE:09986:
Gross Margin %: 41.54% (26% above median its 10-year median of 33.01)
GF Value™: HK$4.83 vs. price of HK$1.88 (61.1% below fair value)
Industry Position: 13.6% below the Education median
No single metric tells the full story. See the HKSE:09986 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dashan Education Holdings Ltd is principally engaged in (i) the provision of extracurricular programmes for personal attainment and overseas education consultation services; and (ii) the provision of diversified consultancy services for entities. The Group's operating and reportable segments are the extracurricular programs segment, the brand operation and management segment, the overseas education segment, the training and consultancy segment, and the Others segment. The majority of its revenue is generated from the overseas education segment. All of the Group's revenue are derived from the PRC.
55GF Score
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