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Puxin (NEWYY) Gross Margin % : 44.20% (As of Jun. 2021)


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What is Puxin Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Puxin's Gross Profit for the three months ended in Jun. 2021 was $46.4 Mil. Puxin's Revenue for the three months ended in Jun. 2021 was $104.9 Mil. Therefore, Puxin's Gross Margin % for the quarter that ended in Jun. 2021 was 44.20%.


The historical rank and industry rank for Puxin's Gross Margin % or its related term are showing as below:


NEWYY's Gross Margin % is not ranked *
in the Education industry.
Industry Median: 47.56
* Ranked among companies with meaningful Gross Margin % only.

Puxin had a gross margin of 44.20% for the quarter that ended in Jun. 2021 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Puxin was 0.00% per year.


Puxin Gross Margin % Historical Data

The historical data trend for Puxin'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.

* Premium members only.

Puxin Gross Margin % Chart

Puxin Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20
Gross Margin %
41.26 38.07 44.22 47.50 46.33

Puxin Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 44.87 49.28 43.70 43.94 44.20

Competitive Comparison of Puxin's Gross Margin %

For the Education & Training Services subindustry, Puxin'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.


Puxin's Gross Margin % Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Puxin's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Puxin's Gross Margin % falls into.



Puxin Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Puxin's Gross Margin for the fiscal year that ended in Dec. 2020 is calculated as

Gross Margin % (A: Dec. 2020 )=Gross Profit (A: Dec. 2020 ) / Revenue (A: Dec. 2020 )
=205.7 / 444.071
=(Revenue - Cost of Goods Sold) / Revenue
=(444.071 - 238.343) / 444.071
=46.33 %

Puxin's Gross Margin for the quarter that ended in Jun. 2021 is calculated as


Gross Margin % (Q: Jun. 2021 )=Gross Profit (Q: Jun. 2021 ) / Revenue (Q: Jun. 2021 )
=46.4 / 104.925
=(Revenue - Cost of Goods Sold) / Revenue
=(104.925 - 58.548) / 104.925
=44.20 %

* 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.


Puxin  (OTCPK:NEWYY) 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

Puxin had a gross margin of 44.20% for the quarter that ended in Jun. 2021 => 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.


Puxin Gross Margin % Related Terms

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Puxin (NEWYY) Business Description

Traded in Other Exchanges
N/A
Address
75 Suzhou Street, Haidian District, 5th Floor, Building 4, Dingjun Building, Beijing, CHN, 100080
Puxin Ltd provides education services. The company's segments consist of K-12 tutoring services and Study abroad tutoring services. Its K-12 tutoring services provide result-oriented educational services in group class settings and through personalized tutoring sessions as well as study plan tailored to fit a student's aptitude, grade level, past academic performance, future academic goals, and other pertinent factors. Study abroad tutoring services are designed to help students prepare for admission tests and applications for high schools, universities and graduate programs primarily in English-speaking countries. It generates a majority of its revenue from the K-12 tutoring services segment. Geographically, it operates in PRC.