China Communications ServicesCUCSY +8.00%79 Gross Margin % is 12.40% as of Dec. 2025, which is 7% above its 10-year median of 11.64. GuruFocus rates CUCSY with a GF Score™ of 79/100 and a GF Value™ of $12.13 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 344 Telecommunication Services companies, China Communications Services ranks worse than 94.19% on this metric.
China Communications Services (OTCPK:CUCSY) 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 Communications Services had a gross margin of 12.40% 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 Communications Services Gross Margin % Related Terms
China Communications Services 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 Communications Services Gross Margin % Chart
For the Telecom Services subindustry, China Communications Services'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 Communications Services Gross Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, China Communications Services's Gross Margin % distribution charts can be found below:
* The bar in red indicates where China Communications Services'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 Communications Services (CUCSY) has a Gross Margin % of 12.40% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on China Communications Services and its competitors. This is near median its historical median of 11.64. Over the past decade, China Communications Services' Gross Margin % has ranged from 11.03 to 13.22. According to the industry distribution chart, China Communications Services ranks #324 out of 344 companies in the Telecommunication Services industry, placing it in the top 94.2%.
Is China Communications Services' Gross Margin % too high?
China Communications Services' current Gross Margin % of 12.40% is near median its 10-year median of 11.64. Over the past 10 years, this metric has ranged from a low of 11.03 to a high of 13.22. The Telecommunication Services industry median Gross Margin % is 51.42. China Communications Services' value of 12.40% is 75.9% below this industry median. Based on the distribution chart, China Communications Services ranks #324 out of 344 companies in the Telecommunication Services industry, which is in the bottom quartile relative to peers. Overall, China Communications Services has a GF Score™ of 79/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does China Communications Services' Gross Margin % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, China Communications Services ranks #324 out of 344 companies for Gross Margin %. This places China Communications Services in the lower half of its industry. The industry median Gross Margin % is 51.42. China Communications Services' value of 12.40% is 75.9% below this benchmark. Historically, China Communications Services' own Gross Margin % has ranged from 11.03 to 13.22 over the past decade. While the company's 10-year median is 11.64 vs. the industry median of 51.42, China Communications Services 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 Telecommunication Services company?
The median Gross Margin % among Telecommunication Services companies is 51.42, based on 344 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 Communications Services's current Gross Margin % of 12.40% is 75.9% 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 Communications Services and its competitors. For the Telecommunication Services industry, the median Gross Margin % is 51.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Communications Services's current Gross Margin % is 12.40%, which is near median its own 10-year median of 11.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Communications Services stock overvalued right now?
Based on GuruFocus' analysis, China Communications Services (CUCSY) is currently considered Modestly Overvalued. The stock's GF Value™ is $12.13, compared to a current price of $13.50 — trading 11.3% above its estimated fair value. The current Gross Margin % is 12.40%, which is near median its 10-year median of 11.64 and 75.9% below the Telecommunication Services industry median of 51.42. China Communications Services' overall GF Score™ is 79/100 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 Communications Services (CUCSY), the current Gross Margin % is 12.40% 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 Communications Services (CUCSY) Overvalued in 2026?
Based on GuruFocus' analysis, China Communications Services stock appears to be overvalued.
The current stock price of $13.50 is trading 11.3% above its estimated GF Value™ of $12.13.
GuruFocus considers China Communications Services to be Modestly Overvalued.
Key valuation signals for CUCSY:
Gross Margin %: 12.40% (near median its 10-year median of 11.64)
GF Value™: $12.13 vs. price of $13.50 (11.3% above fair value)
Industry Position: 75.9% below the Telecommunication Services median (#324 of 344)
No single metric tells the full story. See the CUCSY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Communications Services Business Description
China Communications Services Corp Ltd is a primary service provider in the People's Republic of China that provides integrated comprehensive smart solutions in the field of digital intelligence. The group offers telecommunications infrastructure services, including design, construction and project supervision and management; business process outsourcing services, including management of infrastructure for information technology, general facilities management, supply chain and products distribution; and applications, content and other services, including system integration, software development and system support, and value-added services. It has one operating segment, which is the provision of integrated comprehensive smart solutions in the field of informatisation and digitalisation.
79GF Score
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