Wah Fu Education GroupWAFU 69 Gross Margin % is 59.73% as of Sep. 2025, which is 26% above its 10-year median of 47.59. GuruFocus rates WAFU with a GF Score™ of 69/100 and a GF Value™ of $1.27 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 242 Education companies, Wah Fu Education Group ranks worse than 57.85% on this metric.
WAFU's Gross Margin % is ranked worse than 57.85% of 242
companies
in the Education industry
Industry Median: 48.105
vs WAFU: 43.93
Wah Fu Education Group had a gross margin of 59.73% for the quarter that ended in Sep. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Wah Fu Education Group was -1.20% per year.
Wah Fu Education Group (NAS:WAFU) 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
Wah Fu Education Group had a gross margin of 59.73% for the quarter that ended in Sep. 2025 => 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.
Wah Fu Education Group Gross Margin % Related Terms
Wah Fu Education Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for Wah Fu Education Group'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.
WAFU vs AMBO, ASPU, EEIQ: Gross Margin % Comparison
For the Education & Training Services subindustry, Wah Fu 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.
Wah Fu Education Group Gross Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, Wah Fu Education Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Wah Fu 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.
Wah Fu Education Group (WAFU) has a Gross Margin % of 59.73% as of Sep. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Wah Fu Education Group and its competitors. This is 26% above median its historical median of 47.59. Over the past decade, Wah Fu Education Group's Gross Margin % has ranged from 39.91 to 62.63. According to the industry distribution chart, Wah Fu Education Group ranks #140 out of 242 companies in the Education industry, placing it in the top 57.9%.
Is Wah Fu Education Group's Gross Margin % too high?
Wah Fu Education Group's current Gross Margin % of 59.73% is 26% above median its 10-year median of 47.59. Over the past 10 years, this metric has ranged from a low of 39.91 to a high of 62.63. The Education industry median Gross Margin % is 48.11. Wah Fu Education Group's value of 59.73% is 24.2% above this industry median. Based on the distribution chart, Wah Fu Education Group ranks #140 out of 242 companies in the Education industry, which is below the industry midpoint. Overall, Wah Fu Education Group has a GF Score™ of 69/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Wah Fu Education Group's Gross Margin % compare to AMBO and ASPU?
According to the Education industry distribution chart, Wah Fu Education Group ranks #140 out of 242 companies for Gross Margin %. This places Wah Fu Education Group in the lower half of its industry. The industry median Gross Margin % is 48.11. Wah Fu Education Group's value of 59.73% is 24.2% above this benchmark. Historically, Wah Fu Education Group's own Gross Margin % has ranged from 39.91 to 62.63 over the past decade. While the company's 10-year median is 47.59 vs. the industry median of 48.11, Wah Fu Education 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 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. Wah Fu Education Group's current Gross Margin % of 59.73% is 24.2% 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 Wah Fu 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. Wah Fu Education Group's current Gross Margin % is 59.73%, which is 26% above median its own 10-year median of 47.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Wah Fu Education Group stock overvalued right now?
Based on GuruFocus' analysis, Wah Fu Education Group (WAFU) is currently considered Modestly Overvalued. The stock's GF Value™ is $1.27, compared to a current price of $1.57 — trading 23.6% above its estimated fair value. The current Gross Margin % is 59.73%, which is 26% above median its 10-year median of 47.59 and 24.2% above the Education industry median of 48.11. Wah Fu Education Group's overall GF Score™ is 69/100 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 Wah Fu Education Group (WAFU), the current Gross Margin % is 59.73% as of Sep. 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 Wah Fu Education Group (WAFU) Overvalued in 2026?
Based on GuruFocus' analysis, Wah Fu Education Group stock appears to be overvalued.
The current stock price of $1.57 is trading 23.6% above its estimated GF Value™ of $1.27.
GuruFocus considers Wah Fu Education Group to be Modestly Overvalued.
Key valuation signals for WAFU:
Gross Margin %: 59.73% (26% above median its 10-year median of 47.59)
GF Value™: $1.27 vs. price of $1.57 (23.6% above fair value)
Industry Position: 24.2% above the Education median (#140 of 242)
No single metric tells the full story. See the WAFU stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Wah Fu Education Group Ltd is involved in providing online exam preparation services and related technology solutions, and also produces online training course materials in China. It develops online educational materials that are offered through the cloud and that can be used for a wide range of purposes, such as standard examination preparation, professional training, and interactive programs for educational purposes other than exam preparation. Its segments are Online Education Services and Technological Development and Operation Service. The company generates maximum revenue from the Online Education Services segment.
69GF Score
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