Chengdu Expressway CoFRA:3E8 -2.08%86 Gross Margin % is 31.73% as of Dec. 2025, which is 13% below its 10-year median of 36.35. GuruFocus rates FRA:3E8 with a GF Score™ of 86/100 and a GF Value™ of €0.22. The stock has 2 warning signs investors should review. Among 1,718 Construction companies, Chengdu Expressway Co ranks better than 78.87% on this metric.
FRA:3E8's Gross Margin % is ranked better than 78.87% of 1718
companies
in the Construction industry
Industry Median: 20.785
vs FRA:3E8: 37.04
Chengdu Expressway Co had a gross margin of 31.73% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Chengdu Expressway Co was 1.50% per year.
Chengdu Expressway Co (FRA:3E8) 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
Chengdu Expressway Co had a gross margin of 31.73% for the quarter that ended in Dec. 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.
Chengdu Expressway Co Gross Margin % Related Terms
Chengdu Expressway Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Chengdu Expressway Co'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.
Chengdu Expressway Co Gross Margin % Competitor Comparison
For the Infrastructure Operations subindustry, Chengdu Expressway 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.
Chengdu Expressway Co Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Chengdu Expressway Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Chengdu Expressway 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.
Chengdu Expressway Co (FRA:3E8) has a Gross Margin % of 31.73% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Chengdu Expressway Co and its competitors. This is 13% below median its historical median of 36.35. Over the past decade, Chengdu Expressway Co's Gross Margin % has ranged from 27.95 to 38.71. According to the industry distribution chart, Chengdu Expressway Co ranks #363 out of 1718 companies in the Construction industry, placing it in the top 21.1%.
Is Chengdu Expressway Co's Gross Margin % too high?
Chengdu Expressway Co's current Gross Margin % of 31.73% is 13% below median its 10-year median of 36.35. Over the past 10 years, this metric has ranged from a low of 27.95 to a high of 38.71. The Construction industry median Gross Margin % is 20.79. Chengdu Expressway Co's value of 31.73% is 52.7% above this industry median. Based on the distribution chart, Chengdu Expressway Co ranks #363 out of 1718 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Chengdu Expressway Co has a GF Score™ of 86/100, reflecting its overall financial health beyond just this single metric.
How does Chengdu Expressway Co's Gross Margin % compare to competitors?
According to the Construction industry distribution chart, Chengdu Expressway Co ranks #363 out of 1718 companies for Gross Margin %. This places Chengdu Expressway Co in the top 21% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 20.79. Chengdu Expressway Co's value of 31.73% is 52.7% above this benchmark. Historically, Chengdu Expressway Co's own Gross Margin % has ranged from 27.95 to 38.71 over the past decade. While the company's 10-year median is 36.35 vs. the industry median of 20.79, Chengdu Expressway Co 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 a Construction company?
The median Gross Margin % among Construction companies is 20.79, based on 1,718 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. Chengdu Expressway Co's current Gross Margin % of 31.73% is 52.7% 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 Chengdu Expressway Co and its competitors. For the Construction industry, the median Gross Margin % is 20.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chengdu Expressway Co's current Gross Margin % is 31.73%, which is 13% below median its own 10-year median of 36.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chengdu Expressway Co stock overvalued right now?
Chengdu Expressway Co (FRA:3E8) has a current Gross Margin % of 31.73%. The stock's GF Value™ is €0.22, compared to a current price of €0.19 — trading 14.5% below its estimated fair value. The current Gross Margin % is 31.73%, which is 13% below median its 10-year median of 36.35 and 52.7% above the Construction industry median of 20.79. Chengdu Expressway Co's overall GF Score™ is 86/100 with 2 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 Chengdu Expressway Co (FRA:3E8), the current Gross Margin % is 31.73% 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 Chengdu Expressway Co (FRA:3E8) Overvalued in 2026?
Based on GuruFocus' analysis, Chengdu Expressway Co stock appears to be undervalued.
The current stock price of €0.19 is trading 14.5% below its estimated GF Value™ of €0.22.
Key valuation signals for FRA:3E8:
Gross Margin %: 31.73% (13% below median its 10-year median of 36.35)
GF Value™: €0.22 vs. price of €0.19 (14.5% below fair value)
Industry Position: 52.7% above the Construction median (#363 of 1718)
No single metric tells the full story. See the FRA:3E8 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chengdu Expressway Co Ltd is principally engaged in the operation, management and development of expressways located in and around Chengdu, Sichuan Province and retailing of refined oil. Meanwhile, the Group also carries out retail of refined oil and operation of CNG. It operates in two reportable segments the Expressway segment segment comprises the construction, operation and maintenance of toll expressways located in Mainland China; and the Energy Investment segment comprises the operation of petrol stations and a gas station in Mainland China. It derives majority of the revenue from Expressway segment.
86GF Score
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