China New City GroupFRA:C7B +2.65%39 Gross Margin % is 3.74% as of Dec. 2025, which is 86% below its 10-year median of 26.62. GuruFocus rates FRA:C7B with a GF Score™ of 39/100 and a GF Value™ of €0.04. The stock has 9 warning signs investors should review. Among 1,642 Real Estate companies, China New City Group ranks worse than 86.91% on this metric.
China New City Group Ltd gross margin has been in long-term decline. The average rate of decline per year is -2.6%.
The historical rank and industry rank for China New City Group's Gross Margin % or its related term are showing as below:
FRA:C7B'
s Gross Margin % Range Over the Past 10 Years
Min: 12.27 Med: 26.62 Max: 50.18
Current: 12.27
During the past 13 years, the highestGross Margin % of China New City Group was 50.18%. The lowest was 12.27%. And the median was 26.62%.
FRA:C7B's Gross Margin % is ranked worse than 86.91% of 1642
companies
in the Real Estate industry
Industry Median: 36.975
vs FRA:C7B: 12.27
China New City Group had a gross margin of 3.74% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for China New City Group was -2.60% per year.
China New City Group (FRA:C7B) 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 New City Group had a gross margin of 3.74% for the quarter that ended in Dec. 2025 => 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 New City Group Gross Margin % Related Terms
China New City Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for China New City 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 New City Group Gross Margin % Competitor Comparison
For the Real Estate - Development subindustry, China New City 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 New City Group Gross Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, China New City Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where China New City 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 New City Group (FRA:C7B) has a Gross Margin % of 3.74% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on China New City Group and its competitors. This is 86% below median its historical median of 26.62. Over the past decade, China New City Group's Gross Margin % has ranged from 12.27 to 50.18. According to the industry distribution chart, China New City Group ranks #1427 out of 1642 companies in the Real Estate industry, placing it in the top 86.9%.
Is China New City Group's Gross Margin % too high?
China New City Group's current Gross Margin % of 3.74% is 86% below median its 10-year median of 26.62. Over the past 10 years, this metric has ranged from a low of 12.27 to a high of 50.18. The Real Estate industry median Gross Margin % is 36.98. China New City Group's value of 3.74% is 89.9% below this industry median. Based on the distribution chart, China New City Group ranks #1427 out of 1642 companies in the Real Estate industry, which is in the bottom quartile relative to peers. Overall, China New City Group has a GF Score™ of 39/100, reflecting its overall financial health beyond just this single metric.
How does China New City Group's Gross Margin % compare to competitors?
According to the Real Estate industry distribution chart, China New City Group ranks #1427 out of 1642 companies for Gross Margin %. This places China New City Group in the lower half of its industry. The industry median Gross Margin % is 36.98. China New City Group's value of 3.74% is 89.9% below this benchmark. Historically, China New City Group's own Gross Margin % has ranged from 12.27 to 50.18 over the past decade. While the company's 10-year median is 26.62 vs. the industry median of 36.98, China New City Group 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 a Real Estate company?
The median Gross Margin % among Real Estate companies is 36.98, based on 1,642 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 New City Group's current Gross Margin % of 3.74% is 89.9% 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 New City Group and its competitors. For the Real Estate industry, the median Gross Margin % is 36.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China New City Group's current Gross Margin % is 3.74%, which is 86% below median its own 10-year median of 26.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China New City Group stock overvalued right now?
China New City Group (FRA:C7B) has a current Gross Margin % of 3.74%. The stock's GF Value™ is €0.04, compared to a current price of €0.06 — trading 45% above its estimated fair value. The current Gross Margin % is 3.74%, which is 86% below median its 10-year median of 26.62 and 89.9% below the Real Estate industry median of 36.98. China New City Group's overall GF Score™ is 39/100 with 9 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 New City Group (FRA:C7B), the current Gross Margin % is 3.74% 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 New City Group (FRA:C7B) Overvalued in 2026?
Based on GuruFocus' analysis, China New City Group stock appears to be overvalued.
The current stock price of €0.06 is trading 45% above its estimated GF Value™ of €0.04.
Key valuation signals for FRA:C7B:
Gross Margin %: 3.74% (86% below median its 10-year median of 26.62)
GF Value™: €0.04 vs. price of €0.06 (45% above fair value)
Industry Position: 89.9% below the Real Estate median (#1427 of 1642)
No single metric tells the full story. See the FRA:C7B stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China New City Group Ltd is engaged in commercial property investment for leasing, commercial property development for sale and leasing, and commercial operations in the People's Republic of China (PRC). Its segments consist of the commercial property development segment, which develops and sells commercial properties in the Chinese Mainland and Japan; the property rental segment leases investment properties in the Chinese Mainland; the hotel operations segment owns and operates hotels; and the other services segment comprises the Group's project management business and other business that the Group is involved in. The majority of the revenue is derived from the commercial property development segment. Geographically, it operates in the Chinese Mainland and Others.
39GF Score
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