NIOMEX:NION +1.56%77 Gross Margin % is 19.03% as of Mar. 2026, which is 87% above its 10-year median of 10.16. GuruFocus rates MEX:NION with a GF Score™ of 77/100 and a GF Value™ of MXN130.12 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 1,313 Vehicles & Parts companies, NIO ranks worse than 65.42% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. NIO's Gross Profit for the
three
months ended in Mar. 2026 was MXN12,714 Mil. NIO's Revenue for the
three
months ended in Mar. 2026 was MXN66,804 Mil. Therefore, NIO's Gross Margin % for the quarter that ended in Mar. 2026 was 19.03%.
Warning Sign:
NIO Inc gross margin has been in long-term decline. The average rate of decline per year is -4.9%.
The historical rank and industry rank for NIO's Gross Margin % or its related term are showing as below:
MEX:NION'
s Gross Margin % Range Over the Past 10 Years
Min: -15.32 Med: 10.16 Max: 18.88
Current: 15.74
During the past 10 years, the highestGross Margin % of NIO was 18.88%. The lowest was -15.32%. And the median was 10.16%.
MEX:NION's Gross Margin % is ranked worse than 65.42% of 1313
companies
in the Vehicles & Parts industry
Industry Median: 19.84
vs MEX:NION: 15.74
NIO had a gross margin of 19.03% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for NIO was -4.90% per year.
NIO (MEX:NION) 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
NIO had a gross margin of 19.03% for the quarter that ended in Mar. 2026 => 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.
NIO Gross Margin % Related Terms
NIO Gross Margin % Historical Data
* Premium members only.
The historical data trend for NIO'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:NION vs LI, XPEV, VFS: Gross Margin % Comparison
For the Auto Manufacturers subindustry, NIO'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.
NIO Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, NIO's Gross Margin % distribution charts can be found below:
* The bar in red indicates where NIO'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.
NIO (MEX:NION) has a Gross Margin % of 19.03% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on NIO and its competitors. This is 87% above median its historical median of 10.16. According to the industry distribution chart, NIO ranks #859 out of 1313 companies in the Vehicles & Parts industry, placing it in the top 65.4%.
Is NIO's Gross Margin % too high?
NIO's current Gross Margin % of 19.03% is 87% above median its 10-year median of 10.16. The Vehicles & Parts industry median Gross Margin % is 19.84. NIO's value of 19.03% is 4.1% below this industry median. Based on the distribution chart, NIO ranks #859 out of 1313 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, NIO has a GF Score™ of 77/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does NIO's Gross Margin % compare to LI and XPEV?
According to the Vehicles & Parts industry distribution chart, NIO ranks #859 out of 1313 companies for Gross Margin %. This places NIO in the lower half of its industry. The industry median Gross Margin % is 19.84. NIO's value of 19.03% is 4.1% below this benchmark. While the company's 10-year median is 10.16 vs. the industry median of 19.84, NIO 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 a Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.84, based on 1,313 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. NIO's current Gross Margin % of 19.03% is 4.1% 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 NIO and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NIO's current Gross Margin % is 19.03%, which is 87% above median its own 10-year median of 10.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NIO stock overvalued right now?
Based on GuruFocus' analysis, NIO (MEX:NION) is currently considered Possible Value Trap. The stock's GF Value™ is MXN130.12, compared to a current price of MXN89.38 — trading 31.3% below its estimated fair value. The current Gross Margin % is 19.03%, which is 87% above median its 10-year median of 10.16 and 4.1% below the Vehicles & Parts industry median of 19.84. NIO's overall GF Score™ is 77/100 with 3 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 NIO (MEX:NION), the current Gross Margin % is 19.03% 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 NIO (MEX:NION) Overvalued in 2026?
Based on GuruFocus' analysis, NIO stock appears to be undervalued.
The current stock price of MXN89.38 is trading 31.3% below its estimated GF Value™ of MXN130.12.
GuruFocus considers NIO to be Possible Value Trap.
Key valuation signals for MEX:NION:
Gross Margin %: 19.03% (87% above median its 10-year median of 10.16)
GF Value™: MXN130.12 vs. price of MXN89.38 (31.3% below fair value)
Industry Position: 4.1% below the Vehicles & Parts median (#859 of 1313)
No single metric tells the full story. See the MEX:NION stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nio is a leading electric vehicle maker, targeting the premium segment. Founded in November 2014, Nio designs, develops, jointly manufactures, and sells premium smart electric vehicles. The company differentiates itself through continuous technological breakthroughs and innovations, such as battery swapping and autonomous driving. Nio launched its first model, its ES8 seven-seater electric SUV, in December 2017, and began deliveries in June 2018. Its current model portfolio includes midsize to large sedans and SUVs. It sold around 326,000 EVs in 2025, accounting for about 2% of China's passenger new energy vehicle market.
77GF Score
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