2 Cheap Cars GroupNZSE:2CC +1.54%47 Gross Margin % is 22.05% as of Mar. 2026, which is 10% above its 10-year median of 20.12. GuruFocus rates NZSE:2CC with a GF Score™ of 47/100 and a GF Value™ of NZ$0.71 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,313 Vehicles & Parts companies, 2 Cheap Cars Group ranks better than 53.47% on this metric.
The historical rank and industry rank for 2 Cheap Cars Group's Gross Margin % or its related term are showing as below:
NZSE:2CC'
s Gross Margin % Range Over the Past 10 Years
Min: 17.42 Med: 20.12 Max: 23.29
Current: 20.91
During the past 6 years, the highestGross Margin % of 2 Cheap Cars Group was 23.29%. The lowest was 17.42%. And the median was 20.12%.
NZSE:2CC's Gross Margin % is ranked better than 53.47% of 1313
companies
in the Vehicles & Parts industry
Industry Median: 19.84
vs NZSE:2CC: 20.91
2 Cheap Cars Group had a gross margin of 22.05% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for 2 Cheap Cars Group was 1.20% per year.
2 Cheap Cars Group (NZSE:2CC) 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
2 Cheap Cars Group had a gross margin of 22.05% 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.
2 Cheap Cars Group Gross Margin % Related Terms
2 Cheap Cars Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for 2 Cheap Cars Group'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.
NZSE:2CC vs CVNA, PAG, ALTB: Gross Margin % Comparison
For the Auto & Truck Dealerships subindustry, 2 Cheap Cars Group'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.
2 Cheap Cars Group Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, 2 Cheap Cars Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where 2 Cheap Cars Group'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.
2 Cheap Cars Group (NZSE:2CC) has a Gross Margin % of 22.05% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on 2 Cheap Cars Group and its competitors. This is 10% above median its historical median of 20.12. Over the past decade, 2 Cheap Cars Group's Gross Margin % has ranged from 17.42 to 23.29. According to the industry distribution chart, 2 Cheap Cars Group ranks #611 out of 1313 companies in the Vehicles & Parts industry, placing it in the top 46.5%.
Is 2 Cheap Cars Group's Gross Margin % too high?
2 Cheap Cars Group's current Gross Margin % of 22.05% is 10% above median its 10-year median of 20.12. Over the past 10 years, this metric has ranged from a low of 17.42 to a high of 23.29. The Vehicles & Parts industry median Gross Margin % is 19.84. 2 Cheap Cars Group's value of 22.05% is 11.1% above this industry median. Based on the distribution chart, 2 Cheap Cars Group ranks #611 out of 1313 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, 2 Cheap Cars Group has a GF Score™ of 47/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does 2 Cheap Cars Group's Gross Margin % compare to CVNA and PAG?
According to the Vehicles & Parts industry distribution chart, 2 Cheap Cars Group ranks #611 out of 1313 companies for Gross Margin %. This puts 2 Cheap Cars Group in the upper half of its industry. The industry median Gross Margin % is 19.84. 2 Cheap Cars Group's value of 22.05% is 11.1% above this benchmark. Historically, 2 Cheap Cars Group's own Gross Margin % has ranged from 17.42 to 23.29 over the past decade. While the company's 10-year median is 20.12 vs. the industry median of 19.84, 2 Cheap Cars Group 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 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. 2 Cheap Cars Group's current Gross Margin % of 22.05% is 11.1% 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 2 Cheap Cars Group 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. 2 Cheap Cars Group's current Gross Margin % is 22.05%, which is 10% above median its own 10-year median of 20.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is 2 Cheap Cars Group stock overvalued right now?
Based on GuruFocus' analysis, 2 Cheap Cars Group (NZSE:2CC) is currently considered Fairly Valued. The stock's GF Value™ is NZ$0.71, compared to a current price of NZ$0.66 — trading 7% below its estimated fair value. The current Gross Margin % is 22.05%, which is 10% above median its 10-year median of 20.12 and 11.1% above the Vehicles & Parts industry median of 19.84. 2 Cheap Cars Group's overall GF Score™ is 47/100 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 2 Cheap Cars Group (NZSE:2CC), the current Gross Margin % is 22.05% 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 2 Cheap Cars Group (NZSE:2CC) Overvalued in 2026?
Based on GuruFocus' analysis, 2 Cheap Cars Group stock appears to be undervalued.
The current stock price of NZ$0.66 is trading 7% below its estimated GF Value™ of NZ$0.71.
GuruFocus considers 2 Cheap Cars Group to be Fairly Valued.
Key valuation signals for NZSE:2CC:
Gross Margin %: 22.05% (10% above median its 10-year median of 20.12)
GF Value™: NZ$0.71 vs. price of NZ$0.66 (7% below fair value)
Industry Position: 11.1% above the Vehicles & Parts median (#611 of 1313)
No single metric tells the full story. See the NZSE:2CC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
2 Cheap Cars Group Ltd is an integrated automotive group operating throughout New Zealand via two divisions: Automotive Retail and Finance. The group draws revenue from the two divisions: automotive retail division, revenue is derived from the sale of vehicles and from agent commissions relating to third-party finance and insurance products.
47GF Score
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