The historical rank and industry rank for China Evergrande Group's Gross Margin % or its related term are showing as below:
EGRNF's Gross Margin % is not ranked *
in the Real Estate industry.
Industry Median: 36.96 * Ranked among companies with meaningful Gross Margin % only.
China Evergrande Group had a gross margin of 7.64% for the quarter that ended in Jun. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for China Evergrande Group was 0.00% per year.
China Evergrande Group (OTCPK:EGRNF) 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 Evergrande Group had a gross margin of 7.64% for the quarter that ended in Jun. 2023 => 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 Evergrande Group Gross Margin % Related Terms
China Evergrande Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for China Evergrande Group'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.
China Evergrande Group Gross Margin % Competitor Comparison
For the Real Estate - Development subindustry, China Evergrande 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 Evergrande Group Gross Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, China Evergrande Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where China Evergrande 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 Evergrande Group (EGRNF) has a Gross Margin % of 7.64% as of Jun. 2023. Gross margin is the ratio of total gross profit to net sales. View historical data on China Evergrande Group and its competitors.
Is China Evergrande Group's Gross Margin % too high?
China Evergrande Group's current Gross Margin % is 7.64%. The Real Estate industry median Gross Margin % is 36.96. China Evergrande Group's value of 7.64% is 79.3% below this industry median. Overall, China Evergrande Group has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does China Evergrande Group's Gross Margin % compare to competitors?
China Evergrande Group's Gross Margin % of 7.64% can be compared against companies in the Real Estate industry. The industry median Gross Margin % is 36.96. China Evergrande Group's value of 7.64% is 79.3% below this benchmark. 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 Real Estate company?
The median Gross Margin % among Real Estate companies is 36.96, based on 1,644 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 Evergrande Group's current Gross Margin % of 7.64% is 79.3% 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 Evergrande Group and its competitors. For the Real Estate industry, the median Gross Margin % is 36.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Evergrande Group's current Gross Margin % is 7.64%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Evergrande Group stock overvalued right now?
China Evergrande Group (EGRNF) has a current Gross Margin % of 7.64%. The current Gross Margin % is 7.64% and 79.3% below the Real Estate industry median of 36.96. China Evergrande Group's overall GF Score™ is 12/100. 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 Evergrande Group (EGRNF), the current Gross Margin % is 7.64% as of Jun. 2023. 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.
China Evergrande Group is engaged in the property development, property investment, property management, new energy vehicle business, cultural tourism business and health industry business principally in the People's Republic of China. The company is organized into four business segments: property development, property investment, property management and other businesses. Other businesses mainly include new energy vehicle business, cultural tourism business, health industry business and investment business.
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