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Zhejiang Leapmotor Technology Co (OTCPK:ZJLMF) 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
Zhejiang Leapmotor Technology Co had a gross margin of 14.79% for the quarter that ended in Dec. 2025 => 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.
Zhejiang Leapmotor Technology Co Gross Margin % Related Terms
Zhejiang Leapmotor Technology Co 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.
Zhejiang Leapmotor Technology Co Gross Margin % Chart
For the Auto Manufacturers subindustry, Zhejiang Leapmotor Technology Co'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.
Zhejiang Leapmotor Technology Co Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Zhejiang Leapmotor Technology Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Zhejiang Leapmotor Technology Co'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.
Zhejiang Leapmotor Technology Co (ZJLMF) has a Gross Margin % of 14.79% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Zhejiang Leapmotor Technology Co and its competitors. According to the industry distribution chart, Zhejiang Leapmotor Technology Co ranks #926 out of 1309 companies in the Vehicles & Parts industry, placing it in the top 70.7%.
Is Zhejiang Leapmotor Technology Co's Gross Margin % too high?
Zhejiang Leapmotor Technology Co's current Gross Margin % is 14.79%. The Vehicles & Parts industry median Gross Margin % is 19.88. Zhejiang Leapmotor Technology Co's value of 14.79% is 25.6% below this industry median. Based on the distribution chart, Zhejiang Leapmotor Technology Co ranks #926 out of 1309 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Zhejiang Leapmotor Technology Co has a GF Score™ of 53/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Zhejiang Leapmotor Technology Co's Gross Margin % compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Zhejiang Leapmotor Technology Co ranks #926 out of 1309 companies for Gross Margin %. This places Zhejiang Leapmotor Technology Co in the lower half of its industry. The industry median Gross Margin % is 19.88. Zhejiang Leapmotor Technology Co's value of 14.79% is 25.6% 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 a Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.88, based on 1,309 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. Zhejiang Leapmotor Technology Co's current Gross Margin % of 14.79% is 25.6% 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 Zhejiang Leapmotor Technology Co and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhejiang Leapmotor Technology Co's current Gross Margin % is 14.79%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhejiang Leapmotor Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Zhejiang Leapmotor Technology Co (ZJLMF) is currently considered Possible Value Trap. The stock's GF Value™ is $13.41, compared to a current price of $4.30 — trading 67.9% below its estimated fair value. The current Gross Margin % is 14.79% and 25.6% below the Vehicles & Parts industry median of 19.88. Zhejiang Leapmotor Technology Co's overall GF Score™ is 53/100 with 5 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 Zhejiang Leapmotor Technology Co (ZJLMF), the current Gross Margin % is 14.79% 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 Zhejiang Leapmotor Technology Co (ZJLMF) Overvalued in 2026?
Based on GuruFocus' analysis, Zhejiang Leapmotor Technology Co stock appears to be undervalued.
The current stock price of $4.30 is trading 67.9% below its estimated GF Value™ of $13.41.
GuruFocus considers Zhejiang Leapmotor Technology Co to be Possible Value Trap.
Key valuation signals for ZJLMF:
Gross Margin %: 14.79%
GF Value™: $13.41 vs. price of $4.30 (67.9% below fair value)
Industry Position: 25.6% below the Vehicles & Parts median (#926 of 1309)
No single metric tells the full story. See the ZJLMF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhejiang Leapmotor Technology Co Business Description
Zhejiang Leapmotor Technology Co Ltd is principally engaged in the production, research and development, and sales of new energy vehicles in the PRC. The company operates in geographical segments: the Chinese Mainland, Europe, and Others. It derives maximum revenue from the Chinese Mainland. The product lineup encompasses four series - series A, B, C, and D - forming a comprehensive product matrix that includes sedans, SUVs, MPVs, and more. Its current models for sale include Lafa5, B01, B10, D19, C16, C10, C11, C01, and T03.
53GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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