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Dadi Early-Childhood Education Group (ROCO:8437) 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
Dadi Early-Childhood Education Group had a gross margin of 34.98% for the quarter that ended in Dec. 2025 => 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.
Dadi Early-Childhood Education Group Gross Margin % Related Terms
Dadi Early-Childhood Education Group Gross Margin % Historical Data
* 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.
Dadi Early-Childhood Education Group Gross Margin % Chart
ROCO:8437 vs EDU, TAL, LAUR: Gross Margin % Comparison
For the Education & Training Services subindustry, Dadi Early-Childhood Education 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.
Dadi Early-Childhood Education Group Gross Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, Dadi Early-Childhood Education Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Dadi Early-Childhood Education 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.
Dadi Early-Childhood Education Group (ROCO:8437) has a Gross Margin % of 34.98% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Dadi Early-Childhood Education Group and its competitors. This is 53% below median its historical median of 74.04. Over the past decade, Dadi Early-Childhood Education Group's Gross Margin % has ranged from 27.34 to 85.16. According to the industry distribution chart, Dadi Early-Childhood Education Group ranks #198 out of 242 companies in the Education industry, placing it in the top 81.8%.
Is Dadi Early-Childhood Education Group's Gross Margin % too high?
Dadi Early-Childhood Education Group's current Gross Margin % of 34.98% is 53% below median its 10-year median of 74.04. Over the past 10 years, this metric has ranged from a low of 27.34 to a high of 85.16. The Education industry median Gross Margin % is 48.11. Dadi Early-Childhood Education Group's value of 34.98% is 27.3% below this industry median. Based on the distribution chart, Dadi Early-Childhood Education Group ranks #198 out of 242 companies in the Education industry, which is in the bottom quartile relative to peers. Overall, Dadi Early-Childhood Education Group has a GF Score™ of 63/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Dadi Early-Childhood Education Group's Gross Margin % compare to EDU and TAL?
According to the Education industry distribution chart, Dadi Early-Childhood Education Group ranks #198 out of 242 companies for Gross Margin %. This places Dadi Early-Childhood Education Group in the lower half of its industry. The industry median Gross Margin % is 48.11. Dadi Early-Childhood Education Group's value of 34.98% is 27.3% below this benchmark. Historically, Dadi Early-Childhood Education Group's own Gross Margin % has ranged from 27.34 to 85.16 over the past decade. While the company's 10-year median is 74.04 vs. the industry median of 48.11, Dadi Early-Childhood Education Group 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 Education company?
The median Gross Margin % among Education companies is 48.11, based on 242 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. Dadi Early-Childhood Education Group's current Gross Margin % of 34.98% is 27.3% 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 Dadi Early-Childhood Education Group and its competitors. For the Education industry, the median Gross Margin % is 48.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dadi Early-Childhood Education Group's current Gross Margin % is 34.98%, which is 53% below median its own 10-year median of 74.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dadi Early-Childhood Education Group stock overvalued right now?
Based on GuruFocus' analysis, Dadi Early-Childhood Education Group (ROCO:8437) is currently considered Possible Value Trap. The stock's GF Value™ is NT$16.46, compared to a current price of NT$9.99 — trading 39.3% below its estimated fair value. The current Gross Margin % is 34.98%, which is 53% below median its 10-year median of 74.04 and 27.3% below the Education industry median of 48.11. Dadi Early-Childhood Education Group's overall GF Score™ is 63/100 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 Dadi Early-Childhood Education Group (ROCO:8437), the current Gross Margin % is 34.98% as of Dec. 2025. 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 Dadi Early-Childhood Education Group (ROCO:8437) Overvalued in 2026?
Based on GuruFocus' analysis, Dadi Early-Childhood Education Group stock appears to be undervalued.
The current stock price of NT$9.99 is trading 39.3% below its estimated GF Value™ of NT$16.46.
GuruFocus considers Dadi Early-Childhood Education Group to be Possible Value Trap.
Key valuation signals for ROCO:8437:
Gross Margin %: 34.98% (53% below median its 10-year median of 74.04)
GF Value™: NT$16.46 vs. price of NT$9.99 (39.3% below fair value)
Industry Position: 27.3% below the Education median (#198 of 242)
No single metric tells the full story. See the ROCO:8437 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dadi Early-Childhood Education Group Business Description
Dadi Early-Childhood Education Group Ltd mainly engaged in consultation services on education and business administration, R&D of early childhood education materials, development and sales of self-developed computer software and early childhood education related services. The company's products Teaching materials and teaching aids; Kindergarten facilities, Kindergarten supplies, Books, Parent products. Its services are Campus large-scale event planning, Earth Curriculum Design, Multimedia Courses, Early childhood education programs, Earth Children's Fitness Activities, Infant health, Parent School, Teacher training, Environmental arrangement. The company has presence in Mainland China, Hong Kong, Taiwan, Philippines, and Others.
63GF Score
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