China MeiDong Auto HoldingsCMEIF -35.84%49 Gross Margin % is 6.81% as of Dec. 2025, which is 28% below its 10-year median of 9.42. GuruFocus rates CMEIF with a GF Score™ of 49/100 and a GF Value™ of $0.37 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 1,313 Vehicles & Parts companies, China MeiDong Auto Holdings ranks worse than 94.59% on this metric.
China MeiDong Auto Holdings (OTCPK:CMEIF) 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 MeiDong Auto Holdings had a gross margin of 6.81% 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 MeiDong Auto Holdings Gross Margin % Related Terms
China MeiDong Auto 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.
CMEIF vs CVNA, PAG, ALTB: Gross Margin % Comparison
For the Auto & Truck Dealerships subindustry, China MeiDong Auto 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 MeiDong Auto Holdings Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, China MeiDong Auto Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where China MeiDong Auto 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 MeiDong Auto Holdings (CMEIF) has a Gross Margin % of 6.81% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on China MeiDong Auto Holdings and its competitors. This is 28% below median its historical median of 9.42. Over the past decade, China MeiDong Auto Holdings' Gross Margin % has ranged from 5.74 to 11.75. According to the industry distribution chart, China MeiDong Auto Holdings ranks #1242 out of 1313 companies in the Vehicles & Parts industry, placing it in the top 94.6%.
Is China MeiDong Auto Holdings' Gross Margin % too high?
China MeiDong Auto Holdings' current Gross Margin % of 6.81% is 28% below median its 10-year median of 9.42. Over the past 10 years, this metric has ranged from a low of 5.74 to a high of 11.75. The Vehicles & Parts industry median Gross Margin % is 19.84. China MeiDong Auto Holdings' value of 6.81% is 65.7% below this industry median. Based on the distribution chart, China MeiDong Auto Holdings ranks #1242 out of 1313 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, China MeiDong Auto Holdings has a GF Score™ of 49/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China MeiDong Auto Holdings' Gross Margin % compare to CVNA and PAG?
According to the Vehicles & Parts industry distribution chart, China MeiDong Auto Holdings ranks #1242 out of 1313 companies for Gross Margin %. This places China MeiDong Auto Holdings in the lower half of its industry. The industry median Gross Margin % is 19.84. China MeiDong Auto Holdings' value of 6.81% is 65.7% below this benchmark. Historically, China MeiDong Auto Holdings' own Gross Margin % has ranged from 5.74 to 11.75 over the past decade. While the company's 10-year median is 9.42 vs. the industry median of 19.84, China MeiDong Auto 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 Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.84, based on 1,313 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 MeiDong Auto Holdings's current Gross Margin % of 6.81% is 65.7% 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 China MeiDong Auto Holdings and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China MeiDong Auto Holdings's current Gross Margin % is 6.81%, which is 28% below median its own 10-year median of 9.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China MeiDong Auto Holdings stock overvalued right now?
Based on GuruFocus' analysis, China MeiDong Auto Holdings (CMEIF) is currently considered Significantly Undervalued. The stock's GF Value™ is $0.37, compared to a current price of $0.10 — trading 72.4% below its estimated fair value. The current Gross Margin % is 6.81%, which is 28% below median its 10-year median of 9.42 and 65.7% below the Vehicles & Parts industry median of 19.84. China MeiDong Auto Holdings' overall GF Score™ is 49/100 with 5 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 MeiDong Auto Holdings (CMEIF), the current Gross Margin % is 6.81% 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 MeiDong Auto Holdings (CMEIF) Overvalued in 2026?
Based on GuruFocus' analysis, China MeiDong Auto Holdings stock appears to be undervalued.
The current stock price of $0.10 is trading 72.4% below its estimated GF Value™ of $0.37.
GuruFocus considers China MeiDong Auto Holdings to be Significantly Undervalued.
Key valuation signals for CMEIF:
Gross Margin %: 6.81% (28% below median its 10-year median of 9.42)
GF Value™: $0.37 vs. price of $0.10 (72.4% below fair value)
Industry Position: 65.7% below the Vehicles & Parts median (#1242 of 1313)
No single metric tells the full story. See the CMEIF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China MeiDong Auto Holdings Ltd is an investment holding company principally engaged in the automobile dealership business authorized by the respective automobile manufacturers of particular brands in the PRC, including the sale of new passenger cars, spare parts, services, and surveys. The company's portfolio covers mid-to-high-end to luxury brands, including Toyota, Lexus, BMW, BMW Mini, and Porsche. Geographically, all the operations function in the region of China.
49GF Score
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