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QutoutiaoQTTOY -97.00% Gross Margin % is 45.17% as of Dec. 2024, which is 36% below its 10-year median of 70.55. The stock has 5 warning signs investors should review. Among 497 Interactive Media companies, Qutoutiao ranks worse than 67.2% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Qutoutiao's Gross Profit for the
six
months ended in Dec. 2024 was $63.4 Mil. Qutoutiao's Revenue for the
six
months ended in Dec. 2024 was $140.4 Mil. Therefore, Qutoutiao's Gross Margin % for the quarter that ended in Dec. 2024 was 45.17%.
Warning Sign:
Qutoutiao Inc gross margin has been in long-term decline. The average rate of decline per year is -10.7%.
The historical rank and industry rank for Qutoutiao's Gross Margin % or its related term are showing as below:
QTTOY'
s Gross Margin % Range Over the Past 10 Years
Min: 44.21 Med: 70.55 Max: 87.62
Current: 45.17
During the past 9 years, the highestGross Margin % of Qutoutiao was 87.62%. The lowest was 44.21%. And the median was 70.55%.
QTTOY's Gross Margin % is ranked worse than 67.2% of 497
companies
in the Interactive Media industry
Industry Median: 62.58
vs QTTOY: 45.17
Qutoutiao had a gross margin of 45.17% for the quarter that ended in Dec. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Qutoutiao was -10.70% per year.
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
Qutoutiao had a gross margin of 45.17% for the quarter that ended in Dec. 2024 => 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.
Qutoutiao Gross Margin % Related Terms
Qutoutiao Gross Margin % Historical Data
* Premium members only.
The historical data trend for Qutoutiao'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.
QTTOY vs FRZT, GOOGL, META: Gross Margin % Comparison
For the Internet Content & Information subindustry, Qutoutiao'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.
Qutoutiao Gross Margin % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Qutoutiao's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Qutoutiao'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.
Qutoutiao (QTTOY) has a Gross Margin % of 45.17% as of Dec. 2024. Gross margin is the ratio of total gross profit to net sales. View historical data on Qutoutiao and its competitors. This is 36% below median its historical median of 70.55. Over the past decade, Qutoutiao's Gross Margin % has ranged from 44.21 to 87.62. According to the industry distribution chart, Qutoutiao ranks #334 out of 497 companies in the Interactive Media industry, placing it in the top 67.2%.
Is Qutoutiao's Gross Margin % too high?
Qutoutiao's current Gross Margin % of 45.17% is 36% below median its 10-year median of 70.55. Over the past 10 years, this metric has ranged from a low of 44.21 to a high of 87.62. The Interactive Media industry median Gross Margin % is 62.58. Qutoutiao's value of 45.17% is 27.8% below this industry median. Based on the distribution chart, Qutoutiao ranks #334 out of 497 companies in the Interactive Media industry, which is below the industry midpoint.
How does Qutoutiao's Gross Margin % compare to FRZT and GOOGL?
According to the Interactive Media industry distribution chart, Qutoutiao ranks #334 out of 497 companies for Gross Margin %. This places Qutoutiao in the lower half of its industry. The industry median Gross Margin % is 62.58. Qutoutiao's value of 45.17% is 27.8% below this benchmark. Historically, Qutoutiao's own Gross Margin % has ranged from 44.21 to 87.62 over the past decade. While the company's 10-year median is 70.55 vs. the industry median of 62.58, Qutoutiao 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 an Interactive Media company?
The median Gross Margin % among Interactive Media companies is 62.58, based on 497 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. Qutoutiao's current Gross Margin % of 45.17% is 27.8% 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 Qutoutiao and its competitors. For the Interactive Media industry, the median Gross Margin % is 62.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Qutoutiao's current Gross Margin % is 45.17%, which is 36% below median its own 10-year median of 70.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Qutoutiao stock overvalued right now?
Based on GuruFocus' analysis, Qutoutiao (QTTOY) is currently considered Possible Value Trap. The stock's GF Value™ is $0.03, compared to a current price of $0.00 — trading 99% below its estimated fair value. The current Gross Margin % is 45.17%, which is 36% below median its 10-year median of 70.55 and 27.8% below the Interactive Media industry median of 62.58. 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 Qutoutiao (QTTOY), the current Gross Margin % is 45.17% as of Dec. 2024. 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.
Qutoutiao Inc is a mobile content platform company in China. Its flagship mobile application, Qutoutiao, aggregates articles and short videos from professional media and freelancers and presents customized feeds to users. It has also launched a mobile literature application, Midu Novels, which offers users free literature supported by advertising. The mobile literature applications, Midu Novels, and Midu Lite, source content from traditional PC-based online literature platforms, which provide a license to publish their literature content on Midu Novels for a fee and offer pieces of literature. The company generates revenue by providing advertising and marketing services.
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