China Aerospace International Holdings (OTCPK:CHAEF) 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 Aerospace International Holdings had a gross margin of 14.05% for the quarter that ended in Dec. 2025 => 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.
China Aerospace International Holdings Gross Margin % Related Terms
China Aerospace International Holdings 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.
China Aerospace International Holdings Gross Margin % Chart
China Aerospace International Holdings Annual Data
For the Electronic Components subindustry, China Aerospace International Holdings'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 Aerospace International Holdings Gross Margin % vs Hardware 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.
China Aerospace International Holdings (CHAEF) has a Gross Margin % of 14.05% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on China Aerospace International Holdings and its competitors. This is 40% below median its historical median of 23.47. Over the past decade, China Aerospace International Holdings' Gross Margin % has ranged from 16.95 to 27.97. According to the industry distribution chart, China Aerospace International Holdings ranks #1688 out of 2454 companies in the Hardware industry, placing it in the top 68.8%.
Is China Aerospace International Holdings' Gross Margin % too high?
China Aerospace International Holdings' current Gross Margin % of 14.05% is 40% below median its 10-year median of 23.47. Over the past 10 years, this metric has ranged from a low of 16.95 to a high of 27.97. The Hardware industry median Gross Margin % is 24.57. China Aerospace International Holdings' value of 14.05% is 42.8% below this industry median. Based on the distribution chart, China Aerospace International Holdings ranks #1688 out of 2454 companies in the Hardware industry, which is below the industry midpoint. Overall, China Aerospace International Holdings has a GF Score™ of 45/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does China Aerospace International Holdings' Gross Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, China Aerospace International Holdings ranks #1688 out of 2454 companies for Gross Margin %. This places China Aerospace International Holdings in the lower half of its industry. The industry median Gross Margin % is 24.57. China Aerospace International Holdings' value of 14.05% is 42.8% below this benchmark. Historically, China Aerospace International Holdings' own Gross Margin % has ranged from 16.95 to 27.97 over the past decade. While the company's 10-year median is 23.47 vs. the industry median of 24.57, China Aerospace International Holdings 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 a Hardware company?
The median Gross Margin % among Hardware companies is 24.57, based on 2,454 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 Aerospace International Holdings's current Gross Margin % of 14.05% is 42.8% 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 China Aerospace International Holdings and its competitors. For the Hardware industry, the median Gross Margin % is 24.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Aerospace International Holdings's current Gross Margin % is 14.05%, which is 40% below median its own 10-year median of 23.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Aerospace International Holdings stock overvalued right now?
Based on GuruFocus' analysis, China Aerospace International Holdings (CHAEF) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.05, compared to a current price of $0.12 — trading 149% above its estimated fair value. The current Gross Margin % is 14.05%, which is 40% below median its 10-year median of 23.47 and 42.8% below the Hardware industry median of 24.57. China Aerospace International Holdings' overall GF Score™ is 45/100 with 7 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 Aerospace International Holdings (CHAEF), the current Gross Margin % is 14.05% as of Dec. 2025. 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 Aerospace International Holdings (CHAEF) Overvalued in 2026?
Based on GuruFocus' analysis, China Aerospace International Holdings stock appears to be overvalued.
The current stock price of $0.12 is trading 149% above its estimated GF Value™ of $0.05.
GuruFocus considers China Aerospace International Holdings to be Significantly Overvalued.
Key valuation signals for CHAEF:
Gross Margin %: 14.05% (40% below median its 10-year median of 23.47)
GF Value™: $0.05 vs. price of $0.12 (149% above fair value)
Industry Position: 42.8% below the Hardware median (#1688 of 2454)
No single metric tells the full story. See the CHAEF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Aerospace International Holdings Business Description
China Aerospace International Holdings Ltd is an investment holding company engaged in the research and development, design, professional production, sales, and services of the high-tech manufacturing business such as plastic products, electronic products, power products, and semiconductor products. The firm has 7 reportable segments, namely Hi-Tech Manufacturing Business (including plastic products, liquid crystal display, printed circuit boards, intelligent chargers, intelligent power modules, and industrial property investment) and Aerospace Service (including property investment in the S&T Plaza). It generates key revenue from manufacturing Plastic products, Liquid crystal display, and Printed circuit boards. Geographically, It derives key revenue from Hong Kong and Mainland China.
45GF Score
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