STO Express Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -24.4%.
The historical rank and industry rank for STO Express Co's Gross Margin % or its related term are showing as below:
SZSE:002468'
s Gross Margin % Range Over the Past 10 Years
Min: 2.33 Med: 12.13 Max: 19.85
Current: 4.44
During the past 13 years, the highestGross Margin % of STO Express Co was 19.85%. The lowest was 2.33%. And the median was 12.13%.
SZSE:002468's Gross Margin % is ranked worse than 91.14% of 948
companies
in the Transportation industry
Industry Median: 20.01
vs SZSE:002468: 4.44
STO Express Co had a gross margin of 5.88% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for STO Express Co was -24.40% per year.
STO Express Co Gross Margin % Historical Data
The historical data trend for STO Express Co'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.
Competitive Comparison of STO Express Co's Gross Margin %
For the Integrated Freight & Logistics subindustry, STO Express 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.
STO Express Co's Gross Margin % Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, STO Express Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where STO Express 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.
STO Express Co (SZSE:002468) 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
STO Express Co had a gross margin of 5.88% for the quarter that ended in Mar. 2024 => 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.
STO Express Co Gross Margin % Related Terms
Thank you for viewing the detailed overview of STO Express Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
STO Express is one of the "Tongdas", which refers to the top four national express delivery companies that adopt the network partner model. Tongdas provide line-haul transportation, sorting, and waybill services to its network partners for fees, while its local network partners provide first-mile pickup and last-mile delivery services under the Tongdas' brands and collect the payments. STO was founded in 1993 by Nie Tengfei, who passed away in 1998. His ex-wife Chen Xiaoying's brother Chen Dejun is now the Chairman and General Manager, with a 28% stake, and Ms. Chen owned a 5% stake as of Dec. 31, 2022. STO's strategic shareholder is Cainiao Smart Logistics Network, with a 25% stake. Alibaba can exercise its share options to purchase 21% of STO before Dec. 27, 2025 at CNY 16.50 per share.
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