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China Everbright WaterFRA:BIU2 43 Gross Margin % is 47.64% as of Dec. 2025, which is 25% above its 10-year median of 38.16. GuruFocus rates FRA:BIU2 with a GF Score™ of 43/100 and a GF Value™ of €0.11 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 486 Utilities - Regulated companies, China Everbright Water ranks better than 73.66% on this metric.
FRA:BIU2's Gross Margin % is ranked better than 73.66% of 486
companies
in the Utilities - Regulated industry
Industry Median: 30.425
vs FRA:BIU2: 44.05
China Everbright Water had a gross margin of 47.64% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for China Everbright Water was 1.60% per year.
China Everbright Water (FRA:BIU2) 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 Everbright Water had a gross margin of 47.64% for the quarter that ended in Dec. 2025 => Durable 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 Everbright Water Gross Margin % Related Terms
China Everbright Water Gross Margin % Historical Data
* Premium members only.
The historical data trend for China Everbright Water'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.
FRA:BIU2 vs AWK, WTRG, AWR: Gross Margin % Comparison
For the Utilities - Regulated Water subindustry, China Everbright Water'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 Everbright Water Gross Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, China Everbright Water's Gross Margin % distribution charts can be found below:
* The bar in red indicates where China Everbright Water'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 Everbright Water (FRA:BIU2) has a Gross Margin % of 47.64% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on China Everbright Water and its competitors. This is 25% above median its historical median of 38.16. Over the past decade, China Everbright Water's Gross Margin % has ranged from 34.05 to 44.05. According to the industry distribution chart, China Everbright Water ranks #128 out of 486 companies in the Utilities - Regulated industry, placing it in the top 26.3%.
Is China Everbright Water's Gross Margin % too high?
China Everbright Water's current Gross Margin % of 47.64% is 25% above median its 10-year median of 38.16. Over the past 10 years, this metric has ranged from a low of 34.05 to a high of 44.05. The Utilities - Regulated industry median Gross Margin % is 30.43. China Everbright Water's value of 47.64% is 56.6% above this industry median. Based on the distribution chart, China Everbright Water ranks #128 out of 486 companies in the Utilities - Regulated industry, which is above the industry midpoint. Overall, China Everbright Water has a GF Score™ of 43/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does China Everbright Water's Gross Margin % compare to AWK and WTRG?
According to the Utilities - Regulated industry distribution chart, China Everbright Water ranks #128 out of 486 companies for Gross Margin %. This puts China Everbright Water in the upper half of its industry. The industry median Gross Margin % is 30.43. China Everbright Water's value of 47.64% is 56.6% above this benchmark. Historically, China Everbright Water's own Gross Margin % has ranged from 34.05 to 44.05 over the past decade. While the company's 10-year median is 38.16 vs. the industry median of 30.43, China Everbright Water 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 30.43, based on 486 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 Everbright Water's current Gross Margin % of 47.64% is 56.6% 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 Everbright Water and its competitors. For the Utilities - Regulated industry, the median Gross Margin % is 30.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Everbright Water's current Gross Margin % is 47.64%, which is 25% above median its own 10-year median of 38.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Everbright Water stock overvalued right now?
Based on GuruFocus' analysis, China Everbright Water (FRA:BIU2) is currently considered Modestly Overvalued. The stock's GF Value™ is €0.11, compared to a current price of €0.14 — trading 29.1% above its estimated fair value. The current Gross Margin % is 47.64%, which is 25% above median its 10-year median of 38.16 and 56.6% above the Utilities - Regulated industry median of 30.43. China Everbright Water's overall GF Score™ is 43/100 with 7 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 Everbright Water (FRA:BIU2), the current Gross Margin % is 47.64% 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 Everbright Water (FRA:BIU2) Overvalued in 2026?
Based on GuruFocus' analysis, China Everbright Water stock appears to be overvalued.
The current stock price of €0.14 is trading 29.1% above its estimated GF Value™ of €0.11.
GuruFocus considers China Everbright Water to be Modestly Overvalued.
Key valuation signals for FRA:BIU2:
Gross Margin %: 47.64% (25% above median its 10-year median of 38.16)
GF Value™: €0.11 vs. price of €0.14 (29.1% above fair value)
Industry Position: 56.6% above the Utilities - Regulated median (#128 of 486)
No single metric tells the full story. See the FRA:BIU2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Everbright Water Ltd provides water supply, wastewater treatment, sludge treatment, and other environmental services. The company operates in one segment: Water environment management - Engagement in municipal wastewater treatment, industrial wastewater treatment, water supply, reusable water, sludge treatment and disposal, sponge city construction, river-basin ecological restoration, livestock and poultry manure resources utilization, research and development (R&D) of water environment technologies and engineering construction. Geographically, the company operates in the Chinese Mainland and Germany.
43GF Score
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