China Dongxiang (Group) CoCDGXY -8.35%49 Gross Margin % is 65.41% as of Mar. 2026, which is 3% above its 10-year median of 63.35. GuruFocus rates CDGXY with a GF Score™ of 49/100 and a GF Value™ of $2.76. The stock has 2 warning signs investors should review. Among 1,027 Manufacturing - Apparel & Accessories companies, China Dongxiang (Group) Co ranks better than 94.74% on this metric.
China Dongxiang (Group) Co (OTCPK:CDGXY) 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
China Dongxiang (Group) Co had a gross margin of 65.41% for the quarter that ended in Mar. 2026 => 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.
China Dongxiang (Group) Co Gross Margin % Related Terms
China Dongxiang (Group) 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.
For the Apparel Manufacturing subindustry, China Dongxiang (Group) 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.
China Dongxiang (Group) Co Gross Margin % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, China Dongxiang (Group) Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where China Dongxiang (Group) 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.
China Dongxiang (Group) Co (CDGXY) has a Gross Margin % of 65.41% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on China Dongxiang (Group) Co and its competitors. This is near median its historical median of 63.35. Over the past decade, China Dongxiang (Group) Co's Gross Margin % has ranged from 56.88 to 68.58. According to the industry distribution chart, China Dongxiang (Group) Co ranks #54 out of 1027 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 5.3%.
Is China Dongxiang (Group) Co's Gross Margin % too high?
China Dongxiang (Group) Co's current Gross Margin % of 65.41% is near median its 10-year median of 63.35. Over the past 10 years, this metric has ranged from a low of 56.88 to a high of 68.58. The Manufacturing - Apparel & Accessories industry median Gross Margin % is 28.34. China Dongxiang (Group) Co's value of 65.41% is 130.8% above this industry median. Based on the distribution chart, China Dongxiang (Group) Co ranks #54 out of 1027 companies in the Manufacturing - Apparel & Accessories industry, which is in the top quartile — a strong position relative to peers. Overall, China Dongxiang (Group) Co has a GF Score™ of 49/100, reflecting its overall financial health beyond just this single metric.
How does China Dongxiang (Group) Co's Gross Margin % compare to RL and LEVI?
According to the Manufacturing - Apparel & Accessories industry distribution chart, China Dongxiang (Group) Co ranks #54 out of 1027 companies for Gross Margin %. This places China Dongxiang (Group) Co in the top 5% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 28.34. China Dongxiang (Group) Co's value of 65.41% is 130.8% above this benchmark. Historically, China Dongxiang (Group) Co's own Gross Margin % has ranged from 56.88 to 68.58 over the past decade. While the company's 10-year median is 63.35 vs. the industry median of 28.34, China Dongxiang (Group) 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 Manufacturing - Apparel & Accessories company?
The median Gross Margin % among Manufacturing - Apparel & Accessories companies is 28.34, based on 1,027 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. China Dongxiang (Group) Co's current Gross Margin % of 65.41% is 130.8% 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 China Dongxiang (Group) Co and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Gross Margin % is 28.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Dongxiang (Group) Co's current Gross Margin % is 65.41%, which is near median its own 10-year median of 63.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Dongxiang (Group) Co stock overvalued right now?
China Dongxiang (Group) Co (CDGXY) has a current Gross Margin % of 65.41%. The stock's GF Value™ is $2.76, compared to a current price of $2.47 — trading 10.3% below its estimated fair value. The current Gross Margin % is 65.41%, which is near median its 10-year median of 63.35 and 130.8% above the Manufacturing - Apparel & Accessories industry median of 28.34. China Dongxiang (Group) Co's overall GF Score™ is 49/100 with 2 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 China Dongxiang (Group) Co (CDGXY), the current Gross Margin % is 65.41% 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 China Dongxiang (Group) Co (CDGXY) Overvalued in 2026?
Based on GuruFocus' analysis, China Dongxiang (Group) Co stock appears to be undervalued.
The current stock price of $2.47 is trading 10.3% below its estimated GF Value™ of $2.76.
Key valuation signals for CDGXY:
Gross Margin %: 65.41% (near median its 10-year median of 63.35)
GF Value™: $2.76 vs. price of $2.47 (10.3% below fair value)
Industry Position: 130.8% above the Manufacturing - Apparel & Accessories median (#54 of 1027)
No single metric tells the full story. See the CDGXY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Dongxiang (Group) Co Ltd manufactures sports apparel and footwear. Its main brand is Kappa, which it sells in China. The company's primary sales channel is wholesale to distributors. The company also sells directly to consumers through company-operated retail stores and outlets in China, as well as through its e-commerce channel. It has two segments: China Sporting Goods and Investment. The China Sporting Goods segment engages in the distribution and retail sales of sports apparel under the Kappa brand and the Phenix brand, as well as the franchise fee income from such trademarks for certain products.
49GF Score
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