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ZKH GroupZKH -0.34%36 Gross Margin % is 16.75% as of Mar. 2026, which is 4% above its 10-year median of 16.14. GuruFocus rates ZKH with a GF Score™ of 36/100. The stock has 1 warning sign investors should review. Among 1,113 Retail - Cyclical companies, ZKH Group ranks worse than 82.84% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. ZKH Group's Gross Profit for the
three
months ended in Mar. 2026 was $51 Mil. ZKH Group's Revenue for the
three
months ended in Mar. 2026 was $307 Mil. Therefore, ZKH Group's Gross Margin % for the quarter that ended in Mar. 2026 was 16.75%.
The historical rank and industry rank for ZKH Group's Gross Margin % or its related term are showing as below:
ZKH'
s Gross Margin % Range Over the Past 10 Years
Min: 13.58 Med: 16.14 Max: 17.24
Current: 16.34
During the past 6 years, the highestGross Margin % of ZKH Group was 17.24%. The lowest was 13.58%. And the median was 16.14%.
ZKH's Gross Margin % is ranked worse than 82.84% of 1113
companies
in the Retail - Cyclical industry
Industry Median: 36.25
vs ZKH: 16.34
ZKH Group had a gross margin of 16.75% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for ZKH Group was 4.00% per year.
ZKH Group (NYSE:ZKH) 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
ZKH Group had a gross margin of 16.75% 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.
ZKH Group Gross Margin % Related Terms
ZKH Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for ZKH 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.
ZKH vs NEGG, LOGC, BBBY: Gross Margin % Comparison
For the Internet Retail subindustry, ZKH 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.
ZKH Group Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, ZKH Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where ZKH 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.
ZKH Group (ZKH) has a Gross Margin % of 16.75% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on ZKH Group and its competitors. This is near median its historical median of 16.14. Over the past decade, ZKH Group's Gross Margin % has ranged from 13.58 to 17.24. According to the industry distribution chart, ZKH Group ranks #922 out of 1113 companies in the Retail - Cyclical industry, placing it in the top 82.8%.
Is ZKH Group's Gross Margin % too high?
ZKH Group's current Gross Margin % of 16.75% is near median its 10-year median of 16.14. Over the past 10 years, this metric has ranged from a low of 13.58 to a high of 17.24. The Retail - Cyclical industry median Gross Margin % is 36.25. ZKH Group's value of 16.75% is 53.8% below this industry median. Based on the distribution chart, ZKH Group ranks #922 out of 1113 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, ZKH Group has a GF Score™ of 36/100, reflecting its overall financial health beyond just this single metric.
How does ZKH Group's Gross Margin % compare to NEGG and LOGC?
According to the Retail - Cyclical industry distribution chart, ZKH Group ranks #922 out of 1113 companies for Gross Margin %. This places ZKH Group in the lower half of its industry. The industry median Gross Margin % is 36.25. ZKH Group's value of 16.75% is 53.8% below this benchmark. Historically, ZKH Group's own Gross Margin % has ranged from 13.58 to 17.24 over the past decade. While the company's 10-year median is 16.14 vs. the industry median of 36.25, ZKH Group has consistently been below 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 Retail - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.25, based on 1,113 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. ZKH Group's current Gross Margin % of 16.75% is 53.8% 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 ZKH Group and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ZKH Group's current Gross Margin % is 16.75%, which is near median its own 10-year median of 16.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ZKH Group stock overvalued right now?
ZKH Group (ZKH) has a current Gross Margin % of 16.75%. The current Gross Margin % is 16.75%, which is near median its 10-year median of 16.14 and 53.8% below the Retail - Cyclical industry median of 36.25. ZKH Group's overall GF Score™ is 36/100 with 1 warning sign 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 ZKH Group (ZKH), the current Gross Margin % is 16.75% 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.
ZKH Group Ltd engages in providing MRO procurement service platform in China. It provides one-stop MRO procurement and management services for its customers, and offers digital and fulfillment solutions for participants along the industry value chain. It offers a broad range of MRO product offerings covering all MRO product lines on its platform, including spare parts, chemicals, manufacturing parts, general consumables, and office supplies. Majority of the revenues are derived from the PRC.
36GF Score
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