Sunlands Technology GroupSTG -9.31%63 Gross Margin % is 86.49% as of Mar. 2026, which is 3% above its 10-year median of 83.65. GuruFocus rates STG with a GF Score™ of 63/100 and a GF Value™ of $6.22 (Possible Value Trap). The stock has 2 warning signs investors should review. Among 245 Education companies, Sunlands Technology Group ranks better than 95.51% on this metric.
Sunlands Technology Group (NYSE:STG) 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
Sunlands Technology Group had a gross margin of 86.49% 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.
Sunlands Technology Group Gross Margin % Related Terms
Sunlands Technology 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.
STG vs JDZG, SKIL, AACG: Gross Margin % Comparison
For the Education & Training Services subindustry, Sunlands Technology 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.
Sunlands Technology Group Gross Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, Sunlands Technology Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sunlands Technology 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.
Sunlands Technology Group (STG) has a Gross Margin % of 86.49% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Sunlands Technology Group and its competitors. This is near median its historical median of 83.65. Over the past decade, Sunlands Technology Group's Gross Margin % has ranged from 81.94 to 87.70. According to the industry distribution chart, Sunlands Technology Group ranks #11 out of 245 companies in the Education industry, placing it in the top 4.5%.
Is Sunlands Technology Group's Gross Margin % too high?
Sunlands Technology Group's current Gross Margin % of 86.49% is near median its 10-year median of 83.65. Over the past 10 years, this metric has ranged from a low of 81.94 to a high of 87.70. The Education industry median Gross Margin % is 47.86. Sunlands Technology Group's value of 86.49% is 80.7% above this industry median. Based on the distribution chart, Sunlands Technology Group ranks #11 out of 245 companies in the Education industry, which is in the top quartile — a strong position relative to peers. Overall, Sunlands Technology 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 Sunlands Technology Group's Gross Margin % compare to JDZG and SKIL?
According to the Education industry distribution chart, Sunlands Technology Group ranks #11 out of 245 companies for Gross Margin %. This places Sunlands Technology Group in the top 5% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 47.86. Sunlands Technology Group's value of 86.49% is 80.7% above this benchmark. Historically, Sunlands Technology Group's own Gross Margin % has ranged from 81.94 to 87.70 over the past decade. While the company's 10-year median is 83.65 vs. the industry median of 47.86, Sunlands Technology 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 an Education company?
The median Gross Margin % among Education companies is 47.86, based on 245 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. Sunlands Technology Group's current Gross Margin % of 86.49% is 80.7% 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 Sunlands Technology Group and its competitors. For the Education industry, the median Gross Margin % is 47.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sunlands Technology Group's current Gross Margin % is 86.49%, which is near median its own 10-year median of 83.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sunlands Technology Group stock overvalued right now?
Based on GuruFocus' analysis, Sunlands Technology Group (STG) is currently considered Possible Value Trap. The stock's GF Value™ is $6.22, compared to a current price of $4.09 — trading 34.2% below its estimated fair value. The current Gross Margin % is 86.49%, which is near median its 10-year median of 83.65 and 80.7% above the Education industry median of 47.86. Sunlands Technology Group's overall GF Score™ is 63/100 with 2 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 Sunlands Technology Group (STG), the current Gross Margin % is 86.49% 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 Sunlands Technology Group (STG) Overvalued in 2026?
Based on GuruFocus' analysis, Sunlands Technology Group stock appears to be undervalued.
The current stock price of $4.09 is trading 34.2% below its estimated GF Value™ of $6.22.
GuruFocus considers Sunlands Technology Group to be Possible Value Trap.
Key valuation signals for STG:
Gross Margin %: 86.49% (near median its 10-year median of 83.65)
GF Value™: $6.22 vs. price of $4.09 (34.2% below fair value)
Industry Position: 80.7% above the Education median (#11 of 245)
No single metric tells the full story. See the STG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sunlands Technology Group operates in China's adult online education market and adult personal interest learning market through its online platforms. The Group has a deep understanding of the educational needs of its prospective students and offers solutions to help them achieve their goals. It provides online professional courses and educational content, including interest, professional skills, professional certification preparation courses, and degree- or diploma-oriented post-secondary courses. The Group adopts a counseling-oriented sales and marketing approach to offer education solutions based on students' backgrounds and goals, delivering adult online education and personal interest learning through extensive course and content offerings.
63GF Score
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