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Shandong Huayang Dr Chemical Industry Co (BJSE:920304) 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
Shandong Huayang Dr Chemical Industry Co had a gross margin of 11.19% for the quarter that ended in Jun. 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.
Shandong Huayang Dr Chemical Industry Co Gross Margin % Related Terms
Shandong Huayang Dr Chemical Industry 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.
Shandong Huayang Dr Chemical Industry Co Gross Margin % Chart
Shandong Huayang Dr Chemical Industry Co Annual Data
BJSE:920304 vs CTVA, CF, MOS: Gross Margin % Comparison
For the Agricultural Inputs subindustry, Shandong Huayang Dr Chemical Industry 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.
Shandong Huayang Dr Chemical Industry Co Gross Margin % vs Agriculture 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.
Shandong Huayang Dr Chemical Industry Co (BJSE:920304) has a Gross Margin % of 11.19% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Shandong Huayang Dr Chemical Industry Co and its competitors. This is 30% below median its historical median of 16.06. Over the past decade, Shandong Huayang Dr Chemical Industry Co's Gross Margin % has ranged from 11.41 to 19.81. According to the industry distribution chart, Shandong Huayang Dr Chemical Industry Co ranks #198 out of 245 companies in the Agriculture industry, placing it in the top 80.8%.
Is Shandong Huayang Dr Chemical Industry Co's Gross Margin % too high?
Shandong Huayang Dr Chemical Industry Co's current Gross Margin % of 11.19% is 30% below median its 10-year median of 16.06. Over the past 10 years, this metric has ranged from a low of 11.41 to a high of 19.81. The Agriculture industry median Gross Margin % is 25.26. Shandong Huayang Dr Chemical Industry Co's value of 11.19% is 55.7% below this industry median. Based on the distribution chart, Shandong Huayang Dr Chemical Industry Co ranks #198 out of 245 companies in the Agriculture industry, which is in the bottom quartile relative to peers. Overall, Shandong Huayang Dr Chemical Industry Co has a GF Score™ of 70/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Shandong Huayang Dr Chemical Industry Co's Gross Margin % compare to CTVA and CF?
According to the Agriculture industry distribution chart, Shandong Huayang Dr Chemical Industry Co ranks #198 out of 245 companies for Gross Margin %. This places Shandong Huayang Dr Chemical Industry Co in the lower half of its industry. The industry median Gross Margin % is 25.26. Shandong Huayang Dr Chemical Industry Co's value of 11.19% is 55.7% below this benchmark. Historically, Shandong Huayang Dr Chemical Industry Co's own Gross Margin % has ranged from 11.41 to 19.81 over the past decade. While the company's 10-year median is 16.06 vs. the industry median of 25.26, Shandong Huayang Dr Chemical Industry Co 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 an Agriculture company?
The median Gross Margin % among Agriculture companies is 25.26, based on 245 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. Shandong Huayang Dr Chemical Industry Co's current Gross Margin % of 11.19% is 55.7% 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 Shandong Huayang Dr Chemical Industry Co and its competitors. For the Agriculture industry, the median Gross Margin % is 25.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shandong Huayang Dr Chemical Industry Co's current Gross Margin % is 11.19%, which is 30% below median its own 10-year median of 16.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shandong Huayang Dr Chemical Industry Co stock overvalued right now?
Based on GuruFocus' analysis, Shandong Huayang Dr Chemical Industry Co (BJSE:920304) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥11.92, compared to a current price of ¥8.48 — trading 28.9% below its estimated fair value. The current Gross Margin % is 11.19%, which is 30% below median its 10-year median of 16.06 and 55.7% below the Agriculture industry median of 25.26. Shandong Huayang Dr Chemical Industry Co's overall GF Score™ is 70/100 with 6 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 Shandong Huayang Dr Chemical Industry Co (BJSE:920304), the current Gross Margin % is 11.19% as of Jun. 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 Shandong Huayang Dr Chemical Industry Co (BJSE:920304) Overvalued in 2026?
Based on GuruFocus' analysis, Shandong Huayang Dr Chemical Industry Co stock appears to be undervalued.
The current stock price of ¥8.48 is trading 28.9% below its estimated GF Value™ of ¥11.92.
GuruFocus considers Shandong Huayang Dr Chemical Industry Co to be Modestly Undervalued.
Key valuation signals for BJSE:920304:
Gross Margin %: 11.19% (30% below median its 10-year median of 16.06)
GF Value™: ¥11.92 vs. price of ¥8.48 (28.9% below fair value)
Industry Position: 55.7% below the Agriculture median (#198 of 245)
No single metric tells the full story. See the BJSE:920304 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shandong Huayang Dr Chemical Industry Co Ltd engages in research and development, production, and sales of nitric acid and its downstream potassium nitrate, magnesium nitrate, nitro water-soluble fertilizer, and other products.
70GF Score
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