China Shineway Pharmaceutical Group (OTCPK:CSWYF) 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 Shineway Pharmaceutical Group had a gross margin of 72.34% for the quarter that ended in Dec. 2025 => 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 Shineway Pharmaceutical Group Gross Margin % Related Terms
China Shineway Pharmaceutical Group 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 Shineway Pharmaceutical Group Gross Margin % Chart
For the Drug Manufacturers - Specialty & Generic subindustry, China Shineway Pharmaceutical Group'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 Shineway Pharmaceutical Group Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, China Shineway Pharmaceutical Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where China Shineway Pharmaceutical Group'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 Shineway Pharmaceutical Group (CSWYF) has a Gross Margin % of 72.34% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on China Shineway Pharmaceutical Group and its competitors. This is near median its historical median of 73.81. Over the past decade, China Shineway Pharmaceutical Group's Gross Margin % has ranged from 64.54 to 75.15. According to the industry distribution chart, China Shineway Pharmaceutical Group ranks #142 out of 938 companies in the Drug Manufacturers industry, placing it in the top 15.1%.
Is China Shineway Pharmaceutical Group's Gross Margin % too high?
China Shineway Pharmaceutical Group's current Gross Margin % of 72.34% is near median its 10-year median of 73.81. Over the past 10 years, this metric has ranged from a low of 64.54 to a high of 75.15. The Drug Manufacturers industry median Gross Margin % is 48.44. China Shineway Pharmaceutical Group's value of 72.34% is 49.3% above this industry median. Based on the distribution chart, China Shineway Pharmaceutical Group ranks #142 out of 938 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, China Shineway Pharmaceutical Group has a GF Score™ of 92/100, reflecting its overall financial health beyond just this single metric.
How does China Shineway Pharmaceutical Group's Gross Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, China Shineway Pharmaceutical Group ranks #142 out of 938 companies for Gross Margin %. This places China Shineway Pharmaceutical Group in the top 15% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 48.44. China Shineway Pharmaceutical Group's value of 72.34% is 49.3% above this benchmark. Historically, China Shineway Pharmaceutical Group's own Gross Margin % has ranged from 64.54 to 75.15 over the past decade. While the company's 10-year median is 73.81 vs. the industry median of 48.44, China Shineway Pharmaceutical Group 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 Drug Manufacturers company?
The median Gross Margin % among Drug Manufacturers companies is 48.44, based on 938 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 Shineway Pharmaceutical Group's current Gross Margin % of 72.34% is 49.3% 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 Shineway Pharmaceutical Group and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Shineway Pharmaceutical Group's current Gross Margin % is 72.34%, which is near median its own 10-year median of 73.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Shineway Pharmaceutical Group stock overvalued right now?
China Shineway Pharmaceutical Group (CSWYF) has a current Gross Margin % of 72.34%. The stock's GF Value™ is $0.88, compared to a current price of $1.00 — trading 14.1% above its estimated fair value. The current Gross Margin % is 72.34%, which is near median its 10-year median of 73.81 and 49.3% above the Drug Manufacturers industry median of 48.44. China Shineway Pharmaceutical Group's overall GF Score™ is 92/100 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 Shineway Pharmaceutical Group (CSWYF), the current Gross Margin % is 72.34% 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 Shineway Pharmaceutical Group (CSWYF) Overvalued in 2026?
Based on GuruFocus' analysis, China Shineway Pharmaceutical Group stock appears to be overvalued.
The current stock price of $1.00 is trading 14.1% above its estimated GF Value™ of $0.88.
Key valuation signals for CSWYF:
Gross Margin %: 72.34% (near median its 10-year median of 73.81)
GF Value™: $0.88 vs. price of $1.00 (14.1% above fair value)
Industry Position: 49.3% above the Drug Manufacturers median (#142 of 938)
No single metric tells the full story. See the CSWYF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Shineway Pharmaceutical Group Business Description
China Shineway Pharmaceutical Group Ltd is an investment holding company. Along with its subsidiaries, it is engaged in the research, development, manufacturing, and trading of modern Chinese medicines. The company's products comprise injection, soft capsule, granule, traditional Chinese medicine formula granules, and others, of which injections generate maximum revenue for the company. Geographically, the group operates in the People's Republic of China (PRC) and Hong Kong.
92GF Score
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