China Sunsine Chemical Holdings (HAM:CHM) 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 Sunsine Chemical Holdings had a gross margin of 22.34% 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.
China Sunsine Chemical Holdings Gross Margin % Related Terms
China Sunsine Chemical Holdings 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.
China Sunsine Chemical Holdings Gross Margin % Chart
HAM:CHM vs LIN, SHW, ECL: Gross Margin % Comparison
For the Specialty Chemicals subindustry, China Sunsine Chemical Holdings'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 Sunsine Chemical Holdings Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, China Sunsine Chemical Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where China Sunsine Chemical Holdings'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 Sunsine Chemical Holdings (HAM:CHM) has a Gross Margin % of 22.34% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on China Sunsine Chemical Holdings and its competitors. This is 18% below median its historical median of 27.31. Over the past decade, China Sunsine Chemical Holdings' Gross Margin % has ranged from 22.89 to 34.29. According to the industry distribution chart, China Sunsine Chemical Holdings ranks #777 out of 1555 companies in the Chemicals industry, placing it in the top 50%.
Is China Sunsine Chemical Holdings' Gross Margin % too high?
China Sunsine Chemical Holdings' current Gross Margin % of 22.34% is 18% below median its 10-year median of 27.31. Over the past 10 years, this metric has ranged from a low of 22.89 to a high of 34.29. The Chemicals industry median Gross Margin % is 23.44. China Sunsine Chemical Holdings' value of 22.34% is 4.7% below this industry median. Based on the distribution chart, China Sunsine Chemical Holdings ranks #777 out of 1555 companies in the Chemicals industry, which is above the industry midpoint. Overall, China Sunsine Chemical Holdings has a GF Score™ of 65/100, reflecting its overall financial health beyond just this single metric.
How does China Sunsine Chemical Holdings' Gross Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, China Sunsine Chemical Holdings ranks #777 out of 1555 companies for Gross Margin %. This puts China Sunsine Chemical Holdings in the upper half of its industry. The industry median Gross Margin % is 23.44. China Sunsine Chemical Holdings' value of 22.34% is 4.7% below this benchmark. Historically, China Sunsine Chemical Holdings' own Gross Margin % has ranged from 22.89 to 34.29 over the past decade. While the company's 10-year median is 27.31 vs. the industry median of 23.44, China Sunsine Chemical Holdings 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 Chemicals company?
The median Gross Margin % among Chemicals companies is 23.44, based on 1,555 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 Sunsine Chemical Holdings's current Gross Margin % of 22.34% is 4.7% 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 Sunsine Chemical Holdings and its competitors. For the Chemicals industry, the median Gross Margin % is 23.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Sunsine Chemical Holdings's current Gross Margin % is 22.34%, which is 18% below median its own 10-year median of 27.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Sunsine Chemical Holdings stock overvalued right now?
China Sunsine Chemical Holdings (HAM:CHM) has a current Gross Margin % of 22.34%. The stock's GF Value™ is €0.20, compared to a current price of €0.34 — trading 70% above its estimated fair value. The current Gross Margin % is 22.34%, which is 18% below median its 10-year median of 27.31 and 4.7% below the Chemicals industry median of 23.44. China Sunsine Chemical Holdings' overall GF Score™ is 65/100 with 3 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 Sunsine Chemical Holdings (HAM:CHM), the current Gross Margin % is 22.34% 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 Sunsine Chemical Holdings (HAM:CHM) Overvalued in 2026?
Based on GuruFocus' analysis, China Sunsine Chemical Holdings stock appears to be overvalued.
The current stock price of €0.34 is trading 70% above its estimated GF Value™ of €0.20.
Key valuation signals for HAM:CHM:
Gross Margin %: 22.34% (18% below median its 10-year median of 27.31)
GF Value™: €0.20 vs. price of €0.34 (70% above fair value)
Industry Position: 4.7% below the Chemicals median (#777 of 1555)
No single metric tells the full story. See the HAM:CHM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Sunsine Chemical Holdings Business Description
China Sunsine Chemical Holdings Ltd is an investment holding company. Along with its subsidiaries, the company operates as a specialty chemical producer selling rubber accelerators, insoluble sulphur, and antioxidants. Its products have applications in tyres and other rubber-related products such as shoes, belts, and hoses. The group's reportable business segments are the manufacturing and sale of rubber chemicals (Rubber chemicals), the production and supply of heating power (Heating power), and waste management (Waste treatment). A majority of its revenue is generated from the Rubber chemicals segment. Geographically, it derives maximum revenue from the People's Republic of China, followed by other Asian markets, America, Europe, and other regions.
65GF Score
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