Weichai Power CoFRA:WI4 -3.71%70 Gross Margin % is 21.43% as of Mar. 2026, which is 1% below its 10-year median of 21.64. GuruFocus rates FRA:WI4 with a GF Score™ of 70/100 and a GF Value™ of €2.46 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 1,313 Vehicles & Parts companies, Weichai Power Co ranks better than 54.68% on this metric.
The historical rank and industry rank for Weichai Power Co's Gross Margin % or its related term are showing as below:
FRA:WI4'
s Gross Margin % Range Over the Past 10 Years
Min: 17.78 Med: 21.64 Max: 22.63
Current: 21.28
During the past 13 years, the highestGross Margin % of Weichai Power Co was 22.63%. The lowest was 17.78%. And the median was 21.64%.
FRA:WI4's Gross Margin % is ranked better than 54.68% of 1313
companies
in the Vehicles & Parts industry
Industry Median: 19.84
vs FRA:WI4: 21.28
Weichai Power Co had a gross margin of 21.43% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Weichai Power Co was 3.30% per year.
Weichai Power Co (FRA:WI4) 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
Weichai Power Co had a gross margin of 21.43% 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.
Weichai Power Co Gross Margin % Related Terms
Weichai Power Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Weichai Power 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.
For the Auto Manufacturers subindustry, Weichai Power 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.
Weichai Power Co Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Weichai Power Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Weichai Power 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.
Weichai Power Co (FRA:WI4) has a Gross Margin % of 21.43% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Weichai Power Co and its competitors. This is near median its historical median of 21.64. Over the past decade, Weichai Power Co's Gross Margin % has ranged from 17.78 to 22.63. According to the industry distribution chart, Weichai Power Co ranks #595 out of 1313 companies in the Vehicles & Parts industry, placing it in the top 45.3%.
Is Weichai Power Co's Gross Margin % too high?
Weichai Power Co's current Gross Margin % of 21.43% is near median its 10-year median of 21.64. Over the past 10 years, this metric has ranged from a low of 17.78 to a high of 22.63. The Vehicles & Parts industry median Gross Margin % is 19.84. Weichai Power Co's value of 21.43% is 8% above this industry median. Based on the distribution chart, Weichai Power Co ranks #595 out of 1313 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Weichai Power Co has a GF Score™ of 70/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Weichai Power Co's Gross Margin % compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Weichai Power Co ranks #595 out of 1313 companies for Gross Margin %. This puts Weichai Power Co in the upper half of its industry. The industry median Gross Margin % is 19.84. Weichai Power Co's value of 21.43% is 8% above this benchmark. Historically, Weichai Power Co's own Gross Margin % has ranged from 17.78 to 22.63 over the past decade. While the company's 10-year median is 21.64 vs. the industry median of 19.84, Weichai Power 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 Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.84, based on 1,313 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. Weichai Power Co's current Gross Margin % of 21.43% is 8% 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 Weichai Power Co and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Weichai Power Co's current Gross Margin % is 21.43%, which is near median its own 10-year median of 21.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Weichai Power Co stock overvalued right now?
Based on GuruFocus' analysis, Weichai Power Co (FRA:WI4) is currently considered Significantly Overvalued. The stock's GF Value™ is €2.46, compared to a current price of €3.99 — trading 62.3% above its estimated fair value. The current Gross Margin % is 21.43%, which is near median its 10-year median of 21.64 and 8% above the Vehicles & Parts industry median of 19.84. Weichai Power Co's overall GF Score™ is 70/100 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 Weichai Power Co (FRA:WI4), the current Gross Margin % is 21.43% 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 Weichai Power Co (FRA:WI4) Overvalued in 2026?
Based on GuruFocus' analysis, Weichai Power Co stock appears to be overvalued.
The current stock price of €3.99 is trading 62.3% above its estimated GF Value™ of €2.46.
GuruFocus considers Weichai Power Co to be Significantly Overvalued.
Key valuation signals for FRA:WI4:
Gross Margin %: 21.43% (near median its 10-year median of 21.64)
GF Value™: €2.46 vs. price of €3.99 (62.3% above fair value)
Industry Position: 8% above the Vehicles & Parts median (#595 of 1313)
No single metric tells the full story. See the FRA:WI4 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Weichai Power Co Ltd is an industrial technology company that offers vehicles and equipment manufacturing, and logistics and supply chain services in China. The operating segments of the company are; Engines segment which includes the manufacturing and sale of engines and related parts; Automobiles and automobile components which includes the manufacturing and sale of automobiles and automobile components other than Engines; Agricultural equipment includes the manufacturing and sale of agricultural equipment (complete machineries), agricultural machineries, agricultural vehicles, and related parts; and the Intelligent logistics segment which includes forklift trucks production, warehousing technology, and supply chain solution services.
70GF Score
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