ZTO Express (Cayman)MEX:ZTO N 84 Gross Margin % is 24.36% as of Mar. 2026, which is 19% below its 10-year median of 30.16. GuruFocus rates MEX:ZTO N with a GF Score™ of 84/100 and a GF Value™ of MXN546.16. Among 977 Transportation companies, ZTO Express (Cayman) ranks better than 59.26% 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
ZTO Express (Cayman) had a gross margin of 24.36% for the quarter that ended in Mar. 2026 => Competition eroding margins
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.
ZTO Express (Cayman) Gross Margin % Related Terms
ZTO Express (Cayman) Gross Margin % Historical Data
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The historical data trend for ZTO Express (Cayman)'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:ZTO N vs EXPD, CHRW, FDXF: Gross Margin % Comparison
For the Integrated Freight & Logistics subindustry, ZTO Express (Cayman)'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.
ZTO Express (Cayman) Gross Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, ZTO Express (Cayman)'s Gross Margin % distribution charts can be found below:
* The bar in red indicates where ZTO Express (Cayman)'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.
ZTO Express (Cayman) (MEX:ZTO N) has a Gross Margin % of 24.36% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on ZTO Express (Cayman) and its competitors. This is 19% below median its historical median of 30.16. Over the past decade, ZTO Express (Cayman)'s Gross Margin % has ranged from 21.67 to 35.17. According to the industry distribution chart, ZTO Express (Cayman) ranks #398 out of 977 companies in the Transportation industry, placing it in the top 40.7%.
Is ZTO Express (Cayman)'s Gross Margin % too high?
ZTO Express (Cayman)'s current Gross Margin % of 24.36% is 19% below median its 10-year median of 30.16. Over the past 10 years, this metric has ranged from a low of 21.67 to a high of 35.17. The Transportation industry median Gross Margin % is 20.42. ZTO Express (Cayman)'s value of 24.36% is 19.3% above this industry median. Based on the distribution chart, ZTO Express (Cayman) ranks #398 out of 977 companies in the Transportation industry, which is above the industry midpoint. Overall, ZTO Express (Cayman) has a GF Score™ of 84/100, reflecting its overall financial health beyond just this single metric.
How does ZTO Express (Cayman)'s Gross Margin % compare to EXPD and CHRW?
According to the Transportation industry distribution chart, ZTO Express (Cayman) ranks #398 out of 977 companies for Gross Margin %. This puts ZTO Express (Cayman) in the upper half of its industry. The industry median Gross Margin % is 20.42. ZTO Express (Cayman)'s value of 24.36% is 19.3% above this benchmark. Historically, ZTO Express (Cayman)'s own Gross Margin % has ranged from 21.67 to 35.17 over the past decade. While the company's 10-year median is 30.16 vs. the industry median of 20.42, ZTO Express (Cayman) 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 a Transportation company?
The median Gross Margin % among Transportation companies is 20.42, based on 977 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. ZTO Express (Cayman)'s current Gross Margin % of 24.36% is 19.3% 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 ZTO Express (Cayman) and its competitors. For the Transportation industry, the median Gross Margin % is 20.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ZTO Express (Cayman)'s current Gross Margin % is 24.36%, which is 19% below median its own 10-year median of 30.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ZTO Express (Cayman) stock overvalued right now?
ZTO Express (Cayman) (MEX:ZTO N) has a current Gross Margin % of 24.36%. The stock's GF Value™ is MXN546.16, compared to a current price of MXN426.00 — trading 22% below its estimated fair value. The current Gross Margin % is 24.36%, which is 19% below median its 10-year median of 30.16 and 19.3% above the Transportation industry median of 20.42. ZTO Express (Cayman)'s overall GF Score™ is 84/100. 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 ZTO Express (Cayman) (MEX:ZTO N), the current Gross Margin % is 24.36% 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 ZTO Express (Cayman) (MEX:ZTO N) Overvalued in 2026?
Based on GuruFocus' analysis, ZTO Express (Cayman) stock appears to be undervalued.
The current stock price of MXN426.00 is trading 22% below its estimated GF Value™ of MXN546.16.
Key valuation signals for MEX:ZTO N:
Gross Margin %: 24.36% (19% below median its 10-year median of 30.16)
GF Value™: MXN546.16 vs. price of MXN426.00 (22% below fair value)
Industry Position: 19.3% above the Transportation median (#398 of 977)
No single metric tells the full story. See the MEX:ZTO N stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ZTO Express is China's largest express delivery company by parcel volume, with a volume share of 19.4% in 2024. It operates a network partner model where it provides line-haul transportation and sorting services, while its local network partners provide first-mile pickup and last-mile delivery services under the ZTO brand name. Headquartered in Shanghai, the company was founded in 2002 by Meisong Lai, who remains chair, CEO, and its major shareholder with 78% voting rights as of March 31, 2025. ZTO's strategic shareholder is leading China e-commerce company Alibaba Group with around an 8.9% interest.
84GF Score
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