Huize Holding (Huize Holding) Gross Margin % : 42.26% (As of Dec. 2023)

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What is Huize Holding Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Huize Holding's Gross Profit for the three months ended in Dec. 2023 was $14.0 Mil. Huize Holding's Revenue for the three months ended in Dec. 2023 was $33.1 Mil. Therefore, Huize Holding's Gross Margin % for the quarter that ended in Dec. 2023 was 42.26%.

The historical rank and industry rank for Huize Holding's Gross Margin % or its related term are showing as below:

HUIZ' s Gross Margin % Range Over the Past 10 Years
Min: 24.69 Med: 36.58 Max: 37.44
Current: 37.39

During the past 7 years, the highest Gross Margin % of Huize Holding was 37.44%. The lowest was 24.69%. And the median was 36.58%.

HUIZ's Gross Margin % is ranked worse than
64.15% of 53 companies
in the Insurance industry
Industry Median: 42.62 vs HUIZ: 37.39

Huize Holding had a gross margin of 42.26% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Huize Holding was -0.80% per year.

Huize Holding Gross Margin % Historical Data

The historical data trend for Huize Holding'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.

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Huize Holding Gross Margin % Chart

Huize Holding Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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36.44

33.10

24.69

36.58

37.35

Huize Holding Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															37.23	39.83	33.85	35.26	42.26

Competitive Comparison of Huize Holding's Gross Margin %

For the Insurance Brokers subindustry, Huize Holding'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.

Huize Holding's Gross Margin % Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Huize Holding's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Huize Holding's Gross Margin % falls into.

Huize Holding Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Huize Holding's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	62.5	/	167.44
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(167.44 - 104.9)	/	167.44
	=	37.35 %

Huize Holding's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	14	/	33.053
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(33.053 - 19.086)	/	33.053
	=	42.26 %

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.

Huize Holding (NAS:HUIZ) 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

Huize Holding had a gross margin of 42.26% for the quarter that ended in Dec. 2023 => 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.

Huize Holding Gross Margin % Related Terms

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Huize Holding (Huize Holding) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Huize Holding Ltd (NAS:HUIZ) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Qianhai Financial Centre, Linhai Avenue, 49 Floor, Building T1, Qianhai Shenzhen-Hong Kong Cooperation Zone, Shenzhen, CHN, 518000

Website

https://www.huize.com

Huize Holding Ltd is an independent online insurance product and service platform in China. The company distributes on its platform insurance products underwritten by the insurance companies who cooperate with the company, who the company refers to as its insurer partners, and helps them reach a large number of insurance clients. The company's platform offers digitalized insurance purchase experience and services through various internet and mobile internet channels. The company primarily generates revenues from the insurance brokerage fees paid by its insurer partners.