China Art Financial HoldingsCHFHF 48 Gross Margin % is 7.59% as of Dec. 2025, which is 91% below its 10-year median of 88.30. GuruFocus rates CHFHF with a GF Score™ of 48/100 and a GF Value™ of $0.03. The stock has 6 warning signs investors should review. Among 387 Credit Services companies, China Art Financial Holdings ranks worse than 87.34% on this metric.
China Art Financial Holdings (OTCPK:CHFHF) 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 Art Financial Holdings had a gross margin of 7.59% 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 Art Financial Holdings Gross Margin % Related Terms
China Art Financial 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.
For the Credit Services subindustry, China Art Financial 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 Art Financial Holdings Gross Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, China Art Financial Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where China Art Financial Holdings'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 Art Financial Holdings (CHFHF) has a Gross Margin % of 7.59% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on China Art Financial Holdings and its competitors. This is 91% below median its historical median of 88.30. Over the past decade, China Art Financial Holdings' Gross Margin % has ranged from 9.05 to 99.98. According to the industry distribution chart, China Art Financial Holdings ranks #338 out of 387 companies in the Credit Services industry, placing it in the top 87.3%.
Is China Art Financial Holdings' Gross Margin % too high?
China Art Financial Holdings' current Gross Margin % of 7.59% is 91% below median its 10-year median of 88.30. Over the past 10 years, this metric has ranged from a low of 9.05 to a high of 99.98. The Credit Services industry median Gross Margin % is 51.88. China Art Financial Holdings' value of 7.59% is 85.4% below this industry median. Based on the distribution chart, China Art Financial Holdings ranks #338 out of 387 companies in the Credit Services industry, which is in the bottom quartile relative to peers. Overall, China Art Financial Holdings has a GF Score™ of 48/100, reflecting its overall financial health beyond just this single metric.
How does China Art Financial Holdings' Gross Margin % compare to V and MA?
According to the Credit Services industry distribution chart, China Art Financial Holdings ranks #338 out of 387 companies for Gross Margin %. This places China Art Financial Holdings in the lower half of its industry. The industry median Gross Margin % is 51.88. China Art Financial Holdings' value of 7.59% is 85.4% below this benchmark. Historically, China Art Financial Holdings' own Gross Margin % has ranged from 9.05 to 99.98 over the past decade. While the company's 10-year median is 88.30 vs. the industry median of 51.88, China Art Financial 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 Credit Services company?
The median Gross Margin % among Credit Services companies is 51.88, based on 387 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 Art Financial Holdings's current Gross Margin % of 7.59% is 85.4% 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 Art Financial Holdings and its competitors. For the Credit Services industry, the median Gross Margin % is 51.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Art Financial Holdings's current Gross Margin % is 7.59%, which is 91% below median its own 10-year median of 88.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Art Financial Holdings stock overvalued right now?
China Art Financial Holdings (CHFHF) has a current Gross Margin % of 7.59%. The stock's GF Value™ is $0.03, compared to a current price of $0.01 — trading 61% below its estimated fair value. The current Gross Margin % is 7.59%, which is 91% below median its 10-year median of 88.30 and 85.4% below the Credit Services industry median of 51.88. China Art Financial Holdings' overall GF Score™ is 48/100 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 China Art Financial Holdings (CHFHF), the current Gross Margin % is 7.59% 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 Art Financial Holdings (CHFHF) Overvalued in 2026?
Based on GuruFocus' analysis, China Art Financial Holdings stock appears to be undervalued.
The current stock price of $0.01 is trading 61% below its estimated GF Value™ of $0.03.
Key valuation signals for CHFHF:
Gross Margin %: 7.59% (91% below median its 10-year median of 88.30)
GF Value™: $0.03 vs. price of $0.01 (61% below fair value)
Industry Position: 85.4% below the Credit Services median (#338 of 387)
No single metric tells the full story. See the CHFHF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Art Financial Holdings Ltd is an art finance service provider in China. It is engaged in operating art financing channels. The operating business segments of the company are Art and asset pawn business; Art and asset auction business, and Art and asset sales business. It derives maximum revenue from Art and asset sales business. The company auctions products like Zisha artwork, Calligraphies and paintings, Jewel artwork, and others. Geographically, the company has a business presence in China and Hong Kong, of which a majority of the revenue is derived from China. The group's revenue is principally derived from the PRC.
48GF Score
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