YoudaoMEX:DAON 73 Gross Margin % is 44.68% as of Mar. 2026, which is 1% above its 10-year median of 44.29. GuruFocus rates MEX:DAON with a GF Score™ of 73/100 and a GF Value™ of MXN108.92. The stock has 4 warning signs investors should review. Among 245 Education companies, Youdao ranks worse than 57.96% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Youdao's Gross Profit for the
three
months ended in Mar. 2026 was MXN1,576 Mil. Youdao's Revenue for the
three
months ended in Mar. 2026 was MXN3,527 Mil. Therefore, Youdao's Gross Margin % for the quarter that ended in Mar. 2026 was 44.68%.
The historical rank and industry rank for Youdao's Gross Margin % or its related term are showing as below:
MEX:DAON'
s Gross Margin % Range Over the Past 10 Years
Min: 27.75 Med: 44.29 Max: 51.59
Current: 43.73
During the past 9 years, the highestGross Margin % of Youdao was 51.59%. The lowest was 27.75%. And the median was 44.29%.
MEX:DAON's Gross Margin % is ranked worse than 57.96% of 245
companies
in the Education industry
Industry Median: 47.86
vs MEX:DAON: 43.73
Youdao had a gross margin of 44.68% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Youdao was 0.00% per year.
Youdao (MEX:DAON) 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
Youdao had a gross margin of 44.68% for the quarter that ended in Mar. 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.
Youdao Gross Margin % Related Terms
Youdao Gross Margin % Historical Data
* Premium members only.
The historical data trend for Youdao's Gross Margin % can be seen below:
* 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.
MEX:DAON vs LINC, COUR, AFYA: Gross Margin % Comparison
For the Education & Training Services subindustry, Youdao'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.
Youdao Gross Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, Youdao's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Youdao'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.
Youdao (MEX:DAON) has a Gross Margin % of 44.68% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Youdao and its competitors. This is near median its historical median of 44.29. Over the past decade, Youdao's Gross Margin % has ranged from 27.75 to 51.59. According to the industry distribution chart, Youdao ranks #142 out of 245 companies in the Education industry, placing it in the top 58%.
Is Youdao's Gross Margin % too high?
Youdao's current Gross Margin % of 44.68% is near median its 10-year median of 44.29. Over the past 10 years, this metric has ranged from a low of 27.75 to a high of 51.59. The Education industry median Gross Margin % is 47.86. Youdao's value of 44.68% is 6.6% below this industry median. Based on the distribution chart, Youdao ranks #142 out of 245 companies in the Education industry, which is below the industry midpoint. Overall, Youdao has a GF Score™ of 73/100, reflecting its overall financial health beyond just this single metric.
How does Youdao's Gross Margin % compare to LINC and COUR?
According to the Education industry distribution chart, Youdao ranks #142 out of 245 companies for Gross Margin %. This places Youdao in the lower half of its industry. The industry median Gross Margin % is 47.86. Youdao's value of 44.68% is 6.6% below this benchmark. Historically, Youdao's own Gross Margin % has ranged from 27.75 to 51.59 over the past decade. While the company's 10-year median is 44.29 vs. the industry median of 47.86, Youdao 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 47.86, based on 245 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. Youdao's current Gross Margin % of 44.68% is 6.6% 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 Youdao and its competitors. For the Education industry, the median Gross Margin % is 47.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Youdao's current Gross Margin % is 44.68%, which is near median its own 10-year median of 44.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Youdao stock overvalued right now?
Youdao (MEX:DAON) has a current Gross Margin % of 44.68%. The stock's GF Value™ is MXN108.92, compared to a current price of MXN195.00 — trading 79% above its estimated fair value. The current Gross Margin % is 44.68%, which is near median its 10-year median of 44.29 and 6.6% below the Education industry median of 47.86. Youdao's overall GF Score™ is 73/100 with 4 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 Youdao (MEX:DAON), the current Gross Margin % is 44.68% as of Mar. 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 Youdao (MEX:DAON) Overvalued in 2026?
Based on GuruFocus' analysis, Youdao stock appears to be overvalued.
The current stock price of MXN195.00 is trading 79% above its estimated GF Value™ of MXN108.92.
Key valuation signals for MEX:DAON:
Gross Margin %: 44.68% (near median its 10-year median of 44.29)
GF Value™: MXN108.92 vs. price of MXN195.00 (79% above fair value)
Industry Position: 6.6% below the Education median (#142 of 245)
No single metric tells the full story. See the MEX:DAON stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Youdao Inc develops and markets software applications. It engages in developing technologies to provide learning content, applications, and solutions. The firm operates in three segments: Learning services, Smart devices, and Online marketing services. The majority of its revenue comes from the Learning services segment, which generates revenues from online courses, mainly including Youdao Premium Courses, NetEase Cloud Classroom, and China University MOOC. The learning products segment includes sales of smart devices such as the Youdao Dictionary Pen and the Youdao Pocket Translator. Geographically, all of its revenue is generated from the People's Republic of China.
73GF Score
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