Zhuzhou CRRC Times Electric Co (FRA:ZTX) 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
Zhuzhou CRRC Times Electric Co had a gross margin of 33.31% 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.
Zhuzhou CRRC Times Electric Co Gross Margin % Related Terms
Zhuzhou CRRC Times Electric Co Gross Margin % Historical Data
* 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.
Zhuzhou CRRC Times Electric Co Gross Margin % Chart
FRA:ZTX vs UNP, CSX, NSC: Gross Margin % Comparison
For the Railroads subindustry, Zhuzhou CRRC Times Electric 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.
Zhuzhou CRRC Times Electric Co Gross Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, Zhuzhou CRRC Times Electric Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Zhuzhou CRRC Times Electric 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.
Zhuzhou CRRC Times Electric Co (FRA:ZTX) has a Gross Margin % of 33.31% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Zhuzhou CRRC Times Electric Co and its competitors. This is near median its historical median of 30.83. Over the past decade, Zhuzhou CRRC Times Electric Co's Gross Margin % has ranged from 23.33 to 37.15. According to the industry distribution chart, Zhuzhou CRRC Times Electric Co ranks #320 out of 977 companies in the Transportation industry, placing it in the top 32.8%.
Is Zhuzhou CRRC Times Electric Co's Gross Margin % too high?
Zhuzhou CRRC Times Electric Co's current Gross Margin % of 33.31% is near median its 10-year median of 30.83. Over the past 10 years, this metric has ranged from a low of 23.33 to a high of 37.15. The Transportation industry median Gross Margin % is 20.42. Zhuzhou CRRC Times Electric Co's value of 33.31% is 63.1% above this industry median. Based on the distribution chart, Zhuzhou CRRC Times Electric Co ranks #320 out of 977 companies in the Transportation industry, which is above the industry midpoint. Overall, Zhuzhou CRRC Times Electric Co has a GF Score™ of 94/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Zhuzhou CRRC Times Electric Co's Gross Margin % compare to UNP and CSX?
According to the Transportation industry distribution chart, Zhuzhou CRRC Times Electric Co ranks #320 out of 977 companies for Gross Margin %. This puts Zhuzhou CRRC Times Electric Co in the upper half of its industry. The industry median Gross Margin % is 20.42. Zhuzhou CRRC Times Electric Co's value of 33.31% is 63.1% above this benchmark. Historically, Zhuzhou CRRC Times Electric Co's own Gross Margin % has ranged from 23.33 to 37.15 over the past decade. While the company's 10-year median is 30.83 vs. the industry median of 20.42, Zhuzhou CRRC Times Electric 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 Transportation company?
The median Gross Margin % among Transportation companies is 20.42, based on 977 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. Zhuzhou CRRC Times Electric Co's current Gross Margin % of 33.31% is 63.1% 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 Zhuzhou CRRC Times Electric Co and its competitors. For the Transportation industry, the median Gross Margin % is 20.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhuzhou CRRC Times Electric Co's current Gross Margin % is 33.31%, which is near median its own 10-year median of 30.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhuzhou CRRC Times Electric Co stock overvalued right now?
Based on GuruFocus' analysis, Zhuzhou CRRC Times Electric Co (FRA:ZTX) is currently considered Fairly Valued. The stock's GF Value™ is €4.71, compared to a current price of €4.36 — trading 7.4% below its estimated fair value. The current Gross Margin % is 33.31%, which is near median its 10-year median of 30.83 and 63.1% above the Transportation industry median of 20.42. Zhuzhou CRRC Times Electric Co's overall GF Score™ is 94/100 with 5 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 Zhuzhou CRRC Times Electric Co (FRA:ZTX), the current Gross Margin % is 33.31% 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 Zhuzhou CRRC Times Electric Co (FRA:ZTX) Overvalued in 2026?
Based on GuruFocus' analysis, Zhuzhou CRRC Times Electric Co stock appears to be undervalued.
The current stock price of €4.36 is trading 7.4% below its estimated GF Value™ of €4.71.
GuruFocus considers Zhuzhou CRRC Times Electric Co to be Fairly Valued.
Key valuation signals for FRA:ZTX:
Gross Margin %: 33.31% (near median its 10-year median of 30.83)
GF Value™: €4.71 vs. price of €4.36 (7.4% below fair value)
Industry Position: 63.1% above the Transportation median (#320 of 977)
No single metric tells the full story. See the FRA:ZTX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhuzhou CRRC Times Electric Co Business Description
Zhuzhou CRRC Times Electric Co Ltd is in the R&D, design, manufacturing, and sales of rail transit equipment products and the provision of related services, and has an industrial structure of components, systems, and complete machines. Its products mainly include rail transit electrical equipment, railway engineering machinery, communication signal systems, and others. Meanwhile, the Company actively expands to industries other than rail transit and conducts business in the fields of semiconductors, automobiles, new energy, marine, and industrial operations. The Company operates in the domestic market and overseas markets.
94GF Score
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