17 Education & Technology GroupYQ +6.74%60 Gross Margin % is 61.92% as of Mar. 2026, which is 6% above its 10-year median of 58.55. GuruFocus rates YQ with a GF Score™ of 60/100 and a GF Value™ of $2.29 (Fairly Valued). The stock has 6 warning signs investors should review. Among 245 Education companies, 17 Education & Technology Group ranks better than 67.76% on this metric.
17 Education & Technology Group (NAS:YQ) 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
17 Education & Technology Group had a gross margin of 61.92% 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.
17 Education & Technology Group Gross Margin % Related Terms
17 Education & 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.
17 Education & Technology Group Gross Margin % Chart
For the Education & Training Services subindustry, 17 Education & 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.
17 Education & Technology Group Gross Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, 17 Education & Technology Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where 17 Education & 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.
17 Education & Technology Group (YQ) has a Gross Margin % of 61.92% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on 17 Education & Technology Group and its competitors. This is near median its historical median of 58.55. Over the past decade, 17 Education & Technology Group's Gross Margin % has ranged from 36.58 to 66.22. According to the industry distribution chart, 17 Education & Technology Group ranks #79 out of 245 companies in the Education industry, placing it in the top 32.2%.
Is 17 Education & Technology Group's Gross Margin % too high?
17 Education & Technology Group's current Gross Margin % of 61.92% is near median its 10-year median of 58.55. Over the past 10 years, this metric has ranged from a low of 36.58 to a high of 66.22. The Education industry median Gross Margin % is 47.86. 17 Education & Technology Group's value of 61.92% is 29.4% above this industry median. Based on the distribution chart, 17 Education & Technology Group ranks #79 out of 245 companies in the Education industry, which is above the industry midpoint. Overall, 17 Education & Technology Group has a GF Score™ of 60/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does 17 Education & Technology Group's Gross Margin % compare to FEDU and LMMY?
According to the Education industry distribution chart, 17 Education & Technology Group ranks #79 out of 245 companies for Gross Margin %. This puts 17 Education & Technology Group in the upper half of its industry. The industry median Gross Margin % is 47.86. 17 Education & Technology Group's value of 61.92% is 29.4% above this benchmark. Historically, 17 Education & Technology Group's own Gross Margin % has ranged from 36.58 to 66.22 over the past decade. While the company's 10-year median is 58.55 vs. the industry median of 47.86, 17 Education & 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. 17 Education & Technology Group's current Gross Margin % of 61.92% is 29.4% 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 17 Education & 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. 17 Education & Technology Group's current Gross Margin % is 61.92%, which is near median its own 10-year median of 58.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is 17 Education & Technology Group stock overvalued right now?
Based on GuruFocus' analysis, 17 Education & Technology Group (YQ) is currently considered Fairly Valued. The stock's GF Value™ is $2.29, compared to a current price of $2.30 — trading 0.2% above its estimated fair value. The current Gross Margin % is 61.92%, which is near median its 10-year median of 58.55 and 29.4% above the Education industry median of 47.86. 17 Education & Technology Group's overall GF Score™ is 60/100 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 17 Education & Technology Group (YQ), the current Gross Margin % is 61.92% 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 17 Education & Technology Group (YQ) Overvalued in 2026?
Based on GuruFocus' analysis, 17 Education & Technology Group stock appears to be overvalued.
The current stock price of $2.30 is trading 0.2% above its estimated GF Value™ of $2.29.
GuruFocus considers 17 Education & Technology Group to be Fairly Valued.
Key valuation signals for YQ:
Gross Margin %: 61.92% (near median its 10-year median of 58.55)
GF Value™: $2.29 vs. price of $2.30 (0.2% above fair value)
Industry Position: 29.4% above the Education median (#79 of 245)
No single metric tells the full story. See the YQ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
17 Education & Technology Group Business Description
17 Education & Technology Group Inc is engaged in providing education and education technology services in the People's Republic of China (PRC) with a focus on the Teaching and Learning SaaS offerings. It offers smart, in-school, teaching and learning SaaS offerings assist students, teachers, schoolmasters and educational authorities across China. It also offer other educational products and services that complement students' in-school learning. Geographically group operates in China.
60GF Score
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