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XChange TecXHG -3.04%13 Gross Margin % is 2.85% as of Mar. 2026. GuruFocus rates XHG with a GF Score™ of 13/100. The stock has 6 warning signs investors should review. Among 61 Insurance companies, XChange Tec ranks worse than 93.44% 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
XChange Tec had a gross margin of 2.85% for the quarter that ended in Mar. 2026 => No sustainable 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.
XChange Tec Gross Margin % Related Terms
XChange Tec Gross Margin % Historical Data
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The historical data trend for XChange Tec'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.
XHG vs EHTH, QDMI, HUIZ: Gross Margin % Comparison
For the Insurance Brokers subindustry, XChange Tec'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.
XChange Tec Gross Margin % vs Insurance Industry
For the Insurance industry and Financial Services sector, XChange Tec's Gross Margin % distribution charts can be found below:
* The bar in red indicates where XChange Tec'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.
XChange Tec (XHG) has a Gross Margin % of 2.85% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on XChange Tec and its competitors. According to the industry distribution chart, XChange Tec ranks #57 out of 61 companies in the Insurance industry, placing it in the top 93.4%.
Is XChange Tec's Gross Margin % too high?
XChange Tec's current Gross Margin % is 2.85%. The Insurance industry median Gross Margin % is 42.38. XChange Tec's value of 2.85% is 93.3% below this industry median. Based on the distribution chart, XChange Tec ranks #57 out of 61 companies in the Insurance industry, which is in the bottom quartile relative to peers. Overall, XChange Tec has a GF Score™ of 13/100, reflecting its overall financial health beyond just this single metric.
How does XChange Tec's Gross Margin % compare to EHTH and QDMI?
According to the Insurance industry distribution chart, XChange Tec ranks #57 out of 61 companies for Gross Margin %. This places XChange Tec in the lower half of its industry. The industry median Gross Margin % is 42.38. XChange Tec's value of 2.85% is 93.3% below this benchmark. 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. XChange Tec's current Gross Margin % of 2.85% is 93.3% 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 XChange Tec 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. XChange Tec's current Gross Margin % is 2.85%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is XChange Tec stock overvalued right now?
XChange Tec (XHG) has a current Gross Margin % of 2.85%. The current Gross Margin % is 2.85% and 93.3% below the Insurance industry median of 42.38. XChange Tec's overall GF Score™ is 13/100 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 XChange Tec (XHG), the current Gross Margin % is 2.85% 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.
XChange Tec Inc, through its subsidiaries, operates in the insurance agency and insurance technology business. The company specialized in distributing automobile insurance policies at the earlier stage of business and subsequently expanded its insurance product portfolio to include other types of insurance, including life, health, group accident, and other property-related insurances. A maximum of the insurance purchased through platform and agency services is for automobile insurance.
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