China Oriental Group CoCUGCF 66 Gross Margin % is 5.11% as of Dec. 2025, which is 26% below its 10-year median of 6.88. GuruFocus rates CUGCF with a GF Score™ of 66/100 and a GF Value™ of $0.16. The stock has 6 warning signs investors should review. Among 598 Steel companies, China Oriental Group Co ranks worse than 77.59% on this metric.
CUGCF's Gross Margin % is ranked worse than 77.59% of 598
companies
in the Steel industry
Industry Median: 12.61
vs CUGCF: 5.67
China Oriental Group Co had a gross margin of 5.11% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for China Oriental Group Co was -10.20% per year.
China Oriental Group Co (OTCPK:CUGCF) 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 Oriental Group Co had a gross margin of 5.11% 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 Oriental Group Co Gross Margin % Related Terms
China Oriental Group Co 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 Steel subindustry, China Oriental Group Co'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 Oriental Group Co Gross Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, China Oriental Group Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where China Oriental Group Co'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 Oriental Group Co (CUGCF) has a Gross Margin % of 5.11% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on China Oriental Group Co and its competitors. This is 26% below median its historical median of 6.88. Over the past decade, China Oriental Group Co's Gross Margin % has ranged from 0.81 to 17.63. According to the industry distribution chart, China Oriental Group Co ranks #464 out of 598 companies in the Steel industry, placing it in the top 77.6%.
Is China Oriental Group Co's Gross Margin % too high?
China Oriental Group Co's current Gross Margin % of 5.11% is 26% below median its 10-year median of 6.88. Over the past 10 years, this metric has ranged from a low of 0.81 to a high of 17.63. The Steel industry median Gross Margin % is 12.61. China Oriental Group Co's value of 5.11% is 59.5% below this industry median. Based on the distribution chart, China Oriental Group Co ranks #464 out of 598 companies in the Steel industry, which is in the bottom quartile relative to peers. Overall, China Oriental Group Co has a GF Score™ of 66/100, reflecting its overall financial health beyond just this single metric.
How does China Oriental Group Co's Gross Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, China Oriental Group Co ranks #464 out of 598 companies for Gross Margin %. This places China Oriental Group Co in the lower half of its industry. The industry median Gross Margin % is 12.61. China Oriental Group Co's value of 5.11% is 59.5% below this benchmark. Historically, China Oriental Group Co's own Gross Margin % has ranged from 0.81 to 17.63 over the past decade. While the company's 10-year median is 6.88 vs. the industry median of 12.61, China Oriental Group Co 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 Steel company?
The median Gross Margin % among Steel companies is 12.61, based on 598 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 Oriental Group Co's current Gross Margin % of 5.11% is 59.5% 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 Oriental Group Co and its competitors. For the Steel industry, the median Gross Margin % is 12.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Oriental Group Co's current Gross Margin % is 5.11%, which is 26% below median its own 10-year median of 6.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Oriental Group Co stock overvalued right now?
China Oriental Group Co (CUGCF) has a current Gross Margin % of 5.11%. The stock's GF Value™ is $0.16, compared to a current price of $0.19 — trading 18.9% above its estimated fair value. The current Gross Margin % is 5.11%, which is 26% below median its 10-year median of 6.88 and 59.5% below the Steel industry median of 12.61. China Oriental Group Co's overall GF Score™ is 66/100 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 Oriental Group Co (CUGCF), the current Gross Margin % is 5.11% 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 Oriental Group Co (CUGCF) Overvalued in 2026?
Based on GuruFocus' analysis, China Oriental Group Co stock appears to be overvalued.
The current stock price of $0.19 is trading 18.9% above its estimated GF Value™ of $0.16.
Key valuation signals for CUGCF:
Gross Margin %: 5.11% (26% below median its 10-year median of 6.88)
GF Value™: $0.16 vs. price of $0.19 (18.9% above fair value)
Industry Position: 59.5% below the Steel median (#464 of 598)
No single metric tells the full story. See the CUGCF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Oriental Group Co Ltd is involved in investment holding and trading of steel products and iron ore. The company, along with its subsidiaries, is engaged in the manufacturing and sale of iron and steel products, the trading of steel products, iron ore, and related raw materials, the sale of power equipment, and the real estate business. The Group's product offerings mainly include rebars, billets, cold-rolled sheets and galvanized sheets, steel strips and strip products, and H-section steel products, among others. Its operating segments are: Iron and steel, which generates the maximum revenue, and Real estate. Geographically, the Group generates the majority of its revenue from the People's Republic of China (PRC).
66GF Score
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