Gaotu TecheduMEX:GSXN 66 Gross Margin % is 69.53% as of Mar. 2026, which is 3% below its 10-year median of 71.94. GuruFocus rates MEX:GSXN with a GF Score™ of 66/100 and a GF Value™ of MXN214.90. The stock has 2 warning signs investors should review. Among 242 Education companies, Gaotu Techedu ranks better than 81.4% on this metric.
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
Gaotu Techedu had a gross margin of 69.53% 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.
Gaotu Techedu Gross Margin % Related Terms
Gaotu Techedu Gross Margin % Historical Data
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The historical data trend for Gaotu Techedu'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:GSXN vs KLC, FC, JDZG: Gross Margin % Comparison
For the Education & Training Services subindustry, Gaotu Techedu'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.
Gaotu Techedu Gross Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, Gaotu Techedu's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Gaotu Techedu'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.
Gaotu Techedu (MEX:GSXN) has a Gross Margin % of 69.53% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Gaotu Techedu and its competitors. This is near median its historical median of 71.94. Over the past decade, Gaotu Techedu's Gross Margin % has ranged from 63.46 to 75.26. According to the industry distribution chart, Gaotu Techedu ranks #45 out of 242 companies in the Education industry, placing it in the top 18.6%.
Is Gaotu Techedu's Gross Margin % too high?
Gaotu Techedu's current Gross Margin % of 69.53% is near median its 10-year median of 71.94. Over the past 10 years, this metric has ranged from a low of 63.46 to a high of 75.26. The Education industry median Gross Margin % is 47.90. Gaotu Techedu's value of 69.53% is 45.2% above this industry median. Based on the distribution chart, Gaotu Techedu ranks #45 out of 242 companies in the Education industry, which is in the top quartile — a strong position relative to peers. Overall, Gaotu Techedu has a GF Score™ of 66/100, reflecting its overall financial health beyond just this single metric.
How does Gaotu Techedu's Gross Margin % compare to KLC and FC?
According to the Education industry distribution chart, Gaotu Techedu ranks #45 out of 242 companies for Gross Margin %. This places Gaotu Techedu in the top 19% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 47.90. Gaotu Techedu's value of 69.53% is 45.2% above this benchmark. Historically, Gaotu Techedu's own Gross Margin % has ranged from 63.46 to 75.26 over the past decade. While the company's 10-year median is 71.94 vs. the industry median of 47.90, Gaotu Techedu 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 47.90, 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. Gaotu Techedu's current Gross Margin % of 69.53% is 45.2% 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 Gaotu Techedu and its competitors. For the Education industry, the median Gross Margin % is 47.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gaotu Techedu's current Gross Margin % is 69.53%, which is near median its own 10-year median of 71.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gaotu Techedu stock overvalued right now?
Gaotu Techedu (MEX:GSXN) has a current Gross Margin % of 69.53%. The stock's GF Value™ is MXN214.90, compared to a current price of MXN64.10 — trading 70.2% below its estimated fair value. The current Gross Margin % is 69.53%, which is near median its 10-year median of 71.94 and 45.2% above the Education industry median of 47.90. Gaotu Techedu's overall GF Score™ is 66/100 with 2 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 Gaotu Techedu (MEX:GSXN), the current Gross Margin % is 69.53% 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 Gaotu Techedu (MEX:GSXN) Overvalued in 2026?
Based on GuruFocus' analysis, Gaotu Techedu stock appears to be undervalued.
The current stock price of MXN64.10 is trading 70.2% below its estimated GF Value™ of MXN214.90.
Key valuation signals for MEX:GSXN:
Gross Margin %: 69.53% (near median its 10-year median of 71.94)
GF Value™: MXN214.90 vs. price of MXN64.10 (70.2% below fair value)
Industry Position: 45.2% above the Education median (#45 of 242)
No single metric tells the full story. See the MEX:GSXN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gaotu Techedu Inc is a technology-driven education company that provides online live courses in a large-class setting backed by its proprietary technology infrastructure. The company offers courses in large-class format, which amplifies the benefits of online education and allows it to rapidly expand its student base. It operates solely in the PRC and all assets are located in the PRC. The learning services that the company offers include Traditional Learning Services, Non-Academic Tutoring Services, and College Student and Adult Education Services. It derives maximum revenue from Learning Services and also from Educational content & digitalized learning products.
66GF Score
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