Contemporary Amperex Technology Co (OTCPK:CYATY) 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
Contemporary Amperex Technology Co had a gross margin of 24.82% for the quarter that ended in Mar. 2026 => 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.
Contemporary Amperex Technology Co Gross Margin % Related Terms
Contemporary Amperex Technology 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.
Contemporary Amperex Technology Co Gross Margin % Chart
For the Electrical Equipment & Parts subindustry, Contemporary Amperex Technology 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.
Contemporary Amperex Technology Co Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Contemporary Amperex Technology Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Contemporary Amperex Technology 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.
Contemporary Amperex Technology Co (CYATY) has a Gross Margin % of 24.82% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Contemporary Amperex Technology Co and its competitors. This is near median its historical median of 27.02. Over the past decade, Contemporary Amperex Technology Co's Gross Margin % has ranged from 19.19 to 43.70. According to the industry distribution chart, Contemporary Amperex Technology Co ranks #1544 out of 2993 companies in the Industrial Products industry, placing it in the top 51.6%.
Is Contemporary Amperex Technology Co's Gross Margin % too high?
Contemporary Amperex Technology Co's current Gross Margin % of 24.82% is near median its 10-year median of 27.02. Over the past 10 years, this metric has ranged from a low of 19.19 to a high of 43.70. The Industrial Products industry median Gross Margin % is 26.81. Contemporary Amperex Technology Co's value of 24.82% is 7.4% below this industry median. Based on the distribution chart, Contemporary Amperex Technology Co ranks #1544 out of 2993 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Contemporary Amperex Technology Co has a GF Scoreâ„¢ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Contemporary Amperex Technology Co's Gross Margin % compare to VRT and BE?
According to the Industrial Products industry distribution chart, Contemporary Amperex Technology Co ranks #1544 out of 2993 companies for Gross Margin %. This places Contemporary Amperex Technology Co in the lower half of its industry. The industry median Gross Margin % is 26.81. Contemporary Amperex Technology Co's value of 24.82% is 7.4% below this benchmark. Historically, Contemporary Amperex Technology Co's own Gross Margin % has ranged from 19.19 to 43.70 over the past decade. While the company's 10-year median is 27.02 vs. the industry median of 26.81, Contemporary Amperex Technology 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.81, based on 2,993 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. Contemporary Amperex Technology Co's current Gross Margin % of 24.82% is 7.4% 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 Contemporary Amperex Technology Co and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Contemporary Amperex Technology Co's current Gross Margin % is 24.82%, which is near median its own 10-year median of 27.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Contemporary Amperex Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Contemporary Amperex Technology Co (CYATY) is currently considered Modestly Overvalued. The stock's GF Value™ is $18.79, compared to a current price of $21.58 — trading 14.8% above its estimated fair value. The current Gross Margin % is 24.82%, which is near median its 10-year median of 27.02 and 7.4% below the Industrial Products industry median of 26.81. Contemporary Amperex Technology Co's overall GF Score™ is 75/100 with 4 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 Contemporary Amperex Technology Co (CYATY), the current Gross Margin % is 24.82% as of Mar. 2026. 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 Contemporary Amperex Technology Co (CYATY) Overvalued in 2026?
Based on GuruFocus' analysis, Contemporary Amperex Technology Co stock appears to be overvalued.
The current stock price of $21.58 is trading 14.8% above its estimated GF Value™ of $18.79.
GuruFocus considers Contemporary Amperex Technology Co to be Modestly Overvalued.
Key valuation signals for CYATY:
Gross Margin %: 24.82% (near median its 10-year median of 27.02)
GF Value™: $18.79 vs. price of $21.58 (14.8% above fair value)
Industry Position: 7.4% below the Industrial Products median (#1544 of 2993)
No single metric tells the full story. See the CYATY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Contemporary Amperex Technology Co Business Description
CATL, headquartered in Ningde, Fujian Province, is a global leading battery manufacturer founded in 2011. The company specializes in the development and production of lithium-ion batteries for electric vehicle and energy storage systems. CATL is the largest EV battery manufacturer in the world and leads the industry in innovative battery technology development for higher-energy density and safety, longer battery service life, and super-fast charging. CATL is also involved in the manufacturing of cathode and other related battery materials. Through subsidiary Brunp, it works with customers to create a closed-loop battery life cycle from production, application, to recycling.
75GF Score
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