China TowerCTOWY 72 Gross Margin % is 92.93% as of Dec. 2025, which is 1% below its 10-year median of 93.97. GuruFocus rates CTOWY with a GF Score™ of 72/100 and a GF Value™ of $18.90 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 342 Telecommunication Services companies, China Tower ranks better than 99.42% on this metric.
The historical rank and industry rank for China Tower's Gross Margin % or its related term are showing as below:
CTOWY'
s Gross Margin % Range Over the Past 10 Years
Min: 83.02 Med: 93.97 Max: 99.16
Current: 93.9
During the past 11 years, the highestGross Margin % of China Tower was 99.16%. The lowest was 83.02%. And the median was 93.97%.
CTOWY's Gross Margin % is ranked better than 99.42% of 342
companies
in the Telecommunication Services industry
Industry Median: 51.51
vs CTOWY: 93.90
China Tower had a gross margin of 92.93% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for China Tower was 0.00% per year.
China Tower (OTCPK:CTOWY) 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 Tower had a gross margin of 92.93% 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 Tower Gross Margin % Related Terms
China Tower Gross Margin % Historical Data
* Premium members only.
The historical data trend for China Tower's Gross Margin % can be seen below:
* 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 Telecom Services subindustry, China Tower'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 Tower Gross Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, China Tower's Gross Margin % distribution charts can be found below:
* The bar in red indicates where China Tower'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 Tower (CTOWY) has a Gross Margin % of 92.93% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on China Tower and its competitors. This is near median its historical median of 93.97. Over the past decade, China Tower's Gross Margin % has ranged from 83.02 to 99.16. According to the industry distribution chart, China Tower ranks #2 out of 342 companies in the Telecommunication Services industry, placing it in the top 0.59999999999999%.
Is China Tower's Gross Margin % too high?
China Tower's current Gross Margin % of 92.93% is near median its 10-year median of 93.97. Over the past 10 years, this metric has ranged from a low of 83.02 to a high of 99.16. The Telecommunication Services industry median Gross Margin % is 51.51. China Tower's value of 92.93% is 80.4% above this industry median. Based on the distribution chart, China Tower ranks #2 out of 342 companies in the Telecommunication Services industry, which is in the top quartile — a strong position relative to peers. Overall, China Tower has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Tower's Gross Margin % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, China Tower ranks #2 out of 342 companies for Gross Margin %. This places China Tower in the top 1% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 51.51. China Tower's value of 92.93% is 80.4% above this benchmark. Historically, China Tower's own Gross Margin % has ranged from 83.02 to 99.16 over the past decade. While the company's 10-year median is 93.97 vs. the industry median of 51.51, China Tower 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 Telecommunication Services company?
The median Gross Margin % among Telecommunication Services companies is 51.51, based on 342 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 Tower's current Gross Margin % of 92.93% is 80.4% 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 Tower and its competitors. For the Telecommunication Services industry, the median Gross Margin % is 51.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Tower's current Gross Margin % is 92.93%, which is near median its own 10-year median of 93.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Tower stock overvalued right now?
Based on GuruFocus' analysis, China Tower (CTOWY) is currently considered Modestly Undervalued. The stock's GF Value™ is $18.90, compared to a current price of $14.93 — trading 21% below its estimated fair value. The current Gross Margin % is 92.93%, which is near median its 10-year median of 93.97 and 80.4% above the Telecommunication Services industry median of 51.51. China Tower's overall GF Score™ is 72/100 with 3 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 Tower (CTOWY), the current Gross Margin % is 92.93% 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 Tower (CTOWY) Overvalued in 2026?
Based on GuruFocus' analysis, China Tower stock appears to be undervalued.
The current stock price of $14.93 is trading 21% below its estimated GF Value™ of $18.90.
GuruFocus considers China Tower to be Modestly Undervalued.
Key valuation signals for CTOWY:
Gross Margin %: 92.93% (near median its 10-year median of 93.97)
GF Value™: $18.90 vs. price of $14.93 (21% below fair value)
Industry Position: 80.4% above the Telecommunication Services median (#2 of 342)
No single metric tells the full story. See the CTOWY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Tower Corp Ltd is a telecommunications tower infrastructure service provider. It is principally engaged in the construction, maintenance, and operation of base station ancillary facilities such as telecommunications towers, public network coverage in high-speed railways and subways, and large-scale indoor Distributed Antenna Systems (DAS). The Group's various operating divisions are Tower business, DAS business, Smart Tower business, and Energy business. Geographically, the Group derives all of its revenue from Mainland China.
72GF Score
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