Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Chinatesta Textile Testing and Certification Services Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -3.6%.
BJSE:920122's Gross Margin % is ranked better than 65.51% of 1006
companies
in the Business Services industry
Industry Median: 34.515
vs BJSE:920122: 45.90
Chinatesta Textile Testing and Certification Services Co had a gross margin of 39.80% for the quarter that ended in Mar. 2026 => Competition eroding margins
Chinatesta Textile Testing and Certification Services Co (BJSE:920122) 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
Chinatesta Textile Testing and Certification Services Co had a gross margin of 39.80% for the quarter that ended in Mar. 2026 => Competition eroding margins
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.
Chinatesta Textile Testing and Certification Services Co Gross Margin % Related Terms
Chinatesta Textile Testing and Certification Services 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.
Chinatesta Textile Testing and Certification Services Co Gross Margin % Chart
Chinatesta Textile Testing and Certification Services Co Annual Data
* 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.
Chinatesta Textile Testing and Certification Services Co Gross Margin % vs Business Services Industry
* 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.
Chinatesta Textile Testing and Certification Services Co (BJSE:920122) has a Gross Margin % of 39.80% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Chinatesta Textile Testing and Certification Services Co and its competitors. This is 20% below median its historical median of 49.56. Over the past decade, Chinatesta Textile Testing and Certification Services Co's Gross Margin % has ranged from 43.02 to 55.38. According to the industry distribution chart, Chinatesta Textile Testing and Certification Services Co ranks #347 out of 1006 companies in the Business Services industry, placing it in the top 34.5%.
Is Chinatesta Textile Testing and Certification Services Co's Gross Margin % too high?
Chinatesta Textile Testing and Certification Services Co's current Gross Margin % of 39.80% is 20% below median its 10-year median of 49.56. Over the past 10 years, this metric has ranged from a low of 43.02 to a high of 55.38. The Business Services industry median Gross Margin % is 34.52. Chinatesta Textile Testing and Certification Services Co's value of 39.80% is 15.3% above this industry median. Based on the distribution chart, Chinatesta Textile Testing and Certification Services Co ranks #347 out of 1006 companies in the Business Services industry, which is above the industry midpoint. Overall, Chinatesta Textile Testing and Certification Services Co has a GF Score™ of 63/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Chinatesta Textile Testing and Certification Services Co's Gross Margin % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Chinatesta Textile Testing and Certification Services Co ranks #347 out of 1006 companies for Gross Margin %. This puts Chinatesta Textile Testing and Certification Services Co in the upper half of its industry. The industry median Gross Margin % is 34.52. Chinatesta Textile Testing and Certification Services Co's value of 39.80% is 15.3% above this benchmark. Historically, Chinatesta Textile Testing and Certification Services Co's own Gross Margin % has ranged from 43.02 to 55.38 over the past decade. While the company's 10-year median is 49.56 vs. the industry median of 34.52, Chinatesta Textile Testing and Certification Services Co 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 a Business Services company?
The median Gross Margin % among Business Services companies is 34.52, based on 1,006 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. Chinatesta Textile Testing and Certification Services Co's current Gross Margin % of 39.80% is 15.3% 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 Chinatesta Textile Testing and Certification Services Co and its competitors. For the Business Services industry, the median Gross Margin % is 34.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chinatesta Textile Testing and Certification Services Co's current Gross Margin % is 39.80%, which is 20% below median its own 10-year median of 49.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chinatesta Textile Testing and Certification Services Co stock overvalued right now?
Based on GuruFocus' analysis, Chinatesta Textile Testing and Certification Services Co (BJSE:920122) is currently considered Possible Value Trap. The stock's GF Value™ is ¥39.68, compared to a current price of ¥21.36 — trading 46.2% below its estimated fair value. The current Gross Margin % is 39.80%, which is 20% below median its 10-year median of 49.56 and 15.3% above the Business Services industry median of 34.52. Chinatesta Textile Testing and Certification Services Co's overall GF Score™ is 63/100 with 4 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 Chinatesta Textile Testing and Certification Services Co (BJSE:920122), the current Gross Margin % is 39.80% 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 Chinatesta Textile Testing and Certification Services Co (BJSE:920122) Overvalued in 2026?
Based on GuruFocus' analysis, Chinatesta Textile Testing and Certification Services Co stock appears to be undervalued.
The current stock price of ¥21.36 is trading 46.2% below its estimated GF Value™ of ¥39.68.
GuruFocus considers Chinatesta Textile Testing and Certification Services Co to be Possible Value Trap.
Key valuation signals for BJSE:920122:
Gross Margin %: 39.80% (20% below median its 10-year median of 49.56)
GF Value™: ¥39.68 vs. price of ¥21.36 (46.2% below fair value)
Industry Position: 15.3% above the Business Services median (#347 of 1006)
No single metric tells the full story. See the BJSE:920122 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chinatesta Textile Testing and Certification Services Co Business Description
Chinatesta Textile Testing and Certification Services Co Ltd is engaged in the research and revision of textile standards, inspection, testing, and certification of textile and light industrial products, research and development, management of test consumables, and calibration of textile instruments.
63GF Score
Get the complete analysis for BJSE:920122
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
BJSE:920122 has been successfully added to your 
