China Water Affairs GroupCWAFF 49 Gross Margin % is 35.25% as of Sep. 2025, which is 16% below its 10-year median of 41.83. GuruFocus rates CWAFF with a GF Score™ of 49/100 and a GF Value™ of $0.59 (Modestly Overvalued). The stock has 10 warning signs investors should review. Among 491 Utilities - Regulated companies, China Water Affairs Group ranks better than 59.27% on this metric.
China Water Affairs Group (OTCPK:CWAFF) 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 Water Affairs Group had a gross margin of 35.25% for the quarter that ended in Sep. 2025 => Competition eroding margins
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 Water Affairs Group Gross Margin % Related Terms
China Water Affairs 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.
For the Utilities - Regulated Water subindustry, China Water Affairs 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 Water Affairs Group Gross Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, China Water Affairs Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where China Water Affairs 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 Water Affairs Group (CWAFF) has a Gross Margin % of 35.25% as of Sep. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on China Water Affairs Group and its competitors. This is 16% below median its historical median of 41.83. Over the past decade, China Water Affairs Group's Gross Margin % has ranged from 36.25 to 44.26. According to the industry distribution chart, China Water Affairs Group ranks #200 out of 491 companies in the Utilities - Regulated industry, placing it in the top 40.7%.
Is China Water Affairs Group's Gross Margin % too high?
China Water Affairs Group's current Gross Margin % of 35.25% is 16% below median its 10-year median of 41.83. Over the past 10 years, this metric has ranged from a low of 36.25 to a high of 44.26. The Utilities - Regulated industry median Gross Margin % is 30.95. China Water Affairs Group's value of 35.25% is 13.9% above this industry median. Based on the distribution chart, China Water Affairs Group ranks #200 out of 491 companies in the Utilities - Regulated industry, which is above the industry midpoint. Overall, China Water Affairs Group has a GF Score™ of 49/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does China Water Affairs Group's Gross Margin % compare to AWK and WTRG?
According to the Utilities - Regulated industry distribution chart, China Water Affairs Group ranks #200 out of 491 companies for Gross Margin %. This puts China Water Affairs Group in the upper half of its industry. The industry median Gross Margin % is 30.95. China Water Affairs Group's value of 35.25% is 13.9% above this benchmark. Historically, China Water Affairs Group's own Gross Margin % has ranged from 36.25 to 44.26 over the past decade. While the company's 10-year median is 41.83 vs. the industry median of 30.95, China Water Affairs 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 an Utilities - Regulated company?
The median Gross Margin % among Utilities - Regulated companies is 30.95, based on 491 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 Water Affairs Group's current Gross Margin % of 35.25% is 13.9% 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 Water Affairs Group and its competitors. For the Utilities - Regulated industry, the median Gross Margin % is 30.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Water Affairs Group's current Gross Margin % is 35.25%, which is 16% below median its own 10-year median of 41.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Water Affairs Group stock overvalued right now?
Based on GuruFocus' analysis, China Water Affairs Group (CWAFF) is currently considered Modestly Overvalued. The stock's GF Value™ is $0.59, compared to a current price of $0.62 — trading 5.1% above its estimated fair value. The current Gross Margin % is 35.25%, which is 16% below median its 10-year median of 41.83 and 13.9% above the Utilities - Regulated industry median of 30.95. China Water Affairs Group's overall GF Score™ is 49/100 with 10 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 Water Affairs Group (CWAFF), the current Gross Margin % is 35.25% as of Sep. 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 Water Affairs Group (CWAFF) Overvalued in 2026?
Based on GuruFocus' analysis, China Water Affairs Group stock appears to be overvalued.
The current stock price of $0.62 is trading 5.1% above its estimated GF Value™ of $0.59.
GuruFocus considers China Water Affairs Group to be Modestly Overvalued.
Key valuation signals for CWAFF:
Gross Margin %: 35.25% (16% below median its 10-year median of 41.83)
GF Value™: $0.59 vs. price of $0.62 (5.1% above fair value)
Industry Position: 13.9% above the Utilities - Regulated median (#200 of 491)
No single metric tells the full story. See the CWAFF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Water Affairs Group Ltd is a Chinese water utility company that builds, operates, and invests in water affairs projects in China. The firm's primary segments include City water supply operation, main contractor construction, Environmental protection, and Pipeline direct drinking water supply. It generates a majority of its revenue from the City water supply operation segment. Geographically, the company generates a maximum share of its revenue from the People's Republic of China.
49GF Score
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