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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
U PowerUCAR -2.68%56 Gross Margin % is 27.90% as of Dec. 2025, which is 22% below its 10-year median of 35.85. GuruFocus rates UCAR with a GF Score™ of 56/100 and a GF Value™ of $41.07 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 1,308 Vehicles & Parts companies, U Power ranks better than 81.42% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. U Power's Gross Profit for the
six
months ended in Dec. 2025 was $0.93 Mil. U Power's Revenue for the
six
months ended in Dec. 2025 was $3.32 Mil. Therefore, U Power's Gross Margin % for the quarter that ended in Dec. 2025 was 27.90%.
The historical rank and industry rank for U Power's Gross Margin % or its related term are showing as below:
UCAR'
s Gross Margin % Range Over the Past 10 Years
Min: 23.62 Med: 35.85 Max: 61.6
Current: 36.19
During the past 6 years, the highestGross Margin % of U Power was 61.60%. The lowest was 23.62%. And the median was 35.85%.
UCAR's Gross Margin % is ranked better than 81.42% of 1308
companies
in the Vehicles & Parts industry
Industry Median: 19.74
vs UCAR: 36.19
U Power had a gross margin of 27.90% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for U Power was 0.00% 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
U Power had a gross margin of 27.90% 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.
U Power Gross Margin % Related Terms
U Power Gross Margin % Historical Data
* Premium members only.
The historical data trend for U Power'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.
UCAR vs CRMT, KXIN, AZI: Gross Margin % Comparison
For the Auto & Truck Dealerships subindustry, U Power'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.
U Power Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, U Power's Gross Margin % distribution charts can be found below:
* The bar in red indicates where U Power'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.
U Power (UCAR) has a Gross Margin % of 27.90% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on U Power and its competitors. This is 22% below median its historical median of 35.85. Over the past decade, U Power's Gross Margin % has ranged from 23.62 to 61.60. According to the industry distribution chart, U Power ranks #243 out of 1308 companies in the Vehicles & Parts industry, placing it in the top 18.6%.
Is U Power's Gross Margin % too high?
U Power's current Gross Margin % of 27.90% is 22% below median its 10-year median of 35.85. Over the past 10 years, this metric has ranged from a low of 23.62 to a high of 61.60. The Vehicles & Parts industry median Gross Margin % is 19.74. U Power's value of 27.90% is 41.3% above this industry median. Based on the distribution chart, U Power ranks #243 out of 1308 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, U Power has a GF Score™ of 56/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does U Power's Gross Margin % compare to CRMT and KXIN?
According to the Vehicles & Parts industry distribution chart, U Power ranks #243 out of 1308 companies for Gross Margin %. This places U Power in the top 19% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 19.74. U Power's value of 27.90% is 41.3% above this benchmark. Historically, U Power's own Gross Margin % has ranged from 23.62 to 61.60 over the past decade. While the company's 10-year median is 35.85 vs. the industry median of 19.74, U Power 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 19.74, based on 1,308 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. U Power's current Gross Margin % of 27.90% is 41.3% 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 U Power and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. U Power's current Gross Margin % is 27.90%, which is 22% below median its own 10-year median of 35.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is U Power stock overvalued right now?
Based on GuruFocus' analysis, U Power (UCAR) is currently considered Possible Value Trap. The stock's GF Value™ is $41.07, compared to a current price of $0.87 — trading 97.9% below its estimated fair value. The current Gross Margin % is 27.90%, which is 22% below median its 10-year median of 35.85 and 41.3% above the Vehicles & Parts industry median of 19.74. U Power's overall GF Score™ is 56/100 with 6 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 U Power (UCAR), the current Gross Margin % is 27.90% 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 U Power (UCAR) Overvalued in 2026?
Based on GuruFocus' analysis, U Power stock appears to be undervalued.
The current stock price of $0.87 is trading 97.9% below its estimated GF Value™ of $41.07.
GuruFocus considers U Power to be Possible Value Trap.
Key valuation signals for UCAR:
Gross Margin %: 27.90% (22% below median its 10-year median of 35.85)
GF Value™: $41.07 vs. price of $0.87 (97.9% below fair value)
Industry Position: 41.3% above the Vehicles & Parts median (#243 of 1308)
No single metric tells the full story. See the UCAR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
U Power Ltd is involved in the provision of vehicle sourcing services. It is principally engaged in the provision of new energy vehicles development and sales; battery swapping stations manufacturing and sales; battery swapping services, and sourcing services. The company, as a broker, engaged in sales of vehicles between automobile wholesalers and buyers, including small and medium-sized vehicle dealers and individual customers located in lower-tier cities in China.
56GF Score
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