SelectQuoteSLQT +5.51%63 Gross Margin % is 40.93% as of Mar. 2026, which is 27% below its 10-year median of 55.87. GuruFocus rates SLQT with a GF Score™ of 63/100 and a GF Value™ of $2.20 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 61 Insurance companies, SelectQuote ranks worse than 59.02% 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
SelectQuote had a gross margin of 40.93% for the quarter that ended in Mar. 2026 => 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.
SelectQuote Gross Margin % Related Terms
SelectQuote Gross Margin % Historical Data
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The historical data trend for SelectQuote'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.
SLQT vs QDMI, EHTH, XHG: Gross Margin % Comparison
For the Insurance Brokers subindustry, SelectQuote'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.
SelectQuote Gross Margin % vs Insurance Industry
For the Insurance industry and Financial Services sector, SelectQuote's Gross Margin % distribution charts can be found below:
* The bar in red indicates where SelectQuote'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.
SelectQuote (SLQT) has a Gross Margin % of 40.93% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on SelectQuote and its competitors. This is 27% below median its historical median of 55.87. Over the past decade, SelectQuote's Gross Margin % has ranged from 35.09 to 70.89. According to the industry distribution chart, SelectQuote ranks #36 out of 61 companies in the Insurance industry, placing it in the top 59%.
Is SelectQuote's Gross Margin % too high?
SelectQuote's current Gross Margin % of 40.93% is 27% below median its 10-year median of 55.87. Over the past 10 years, this metric has ranged from a low of 35.09 to a high of 70.89. The Insurance industry median Gross Margin % is 42.38. SelectQuote's value of 40.93% is 3.4% below this industry median. Based on the distribution chart, SelectQuote ranks #36 out of 61 companies in the Insurance industry, which is below the industry midpoint. Overall, SelectQuote 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 SelectQuote's Gross Margin % compare to QDMI and EHTH?
According to the Insurance industry distribution chart, SelectQuote ranks #36 out of 61 companies for Gross Margin %. This places SelectQuote in the lower half of its industry. The industry median Gross Margin % is 42.38. SelectQuote's value of 40.93% is 3.4% below this benchmark. Historically, SelectQuote's own Gross Margin % has ranged from 35.09 to 70.89 over the past decade. While the company's 10-year median is 55.87 vs. the industry median of 42.38, SelectQuote 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 Insurance company?
The median Gross Margin % among Insurance companies is 42.38, based on 61 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. SelectQuote's current Gross Margin % of 40.93% is 3.4% 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 SelectQuote and its competitors. For the Insurance industry, the median Gross Margin % is 42.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SelectQuote's current Gross Margin % is 40.93%, which is 27% below median its own 10-year median of 55.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SelectQuote stock overvalued right now?
Based on GuruFocus' analysis, SelectQuote (SLQT) is currently considered Possible Value Trap. The stock's GF Value™ is $2.20, compared to a current price of $0.84 — trading 61.8% below its estimated fair value. The current Gross Margin % is 40.93%, which is 27% below median its 10-year median of 55.87 and 3.4% below the Insurance industry median of 42.38. SelectQuote's overall GF Score™ is 63/100 with 7 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 SelectQuote (SLQT), the current Gross Margin % is 40.93% 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 SelectQuote (SLQT) Overvalued in 2026?
Based on GuruFocus' analysis, SelectQuote stock appears to be undervalued.
The current stock price of $0.84 is trading 61.8% below its estimated GF Value™ of $2.20.
GuruFocus considers SelectQuote to be Possible Value Trap.
Key valuation signals for SLQT:
Gross Margin %: 40.93% (27% below median its 10-year median of 55.87)
GF Value™: $2.20 vs. price of $0.84 (61.8% below fair value)
Industry Position: 3.4% below the Insurance median (#36 of 61)
No single metric tells the full story. See the SLQT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SelectQuote Inc is a Direct-to-consumer (DTC) distribution platform which facilitates consumers to shop for health, life and auto & home insurance policies online. The company generates its revenues by selling insurance products on behalf of the insurance carrier partners in the form of commission. It functions through three lines namely, SelectQuote Senior, SelectQuote Life, and SelectQuote Auto & Home.
63GF Score
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