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Dongwu Cement International (HKSE:00695) 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
Dongwu Cement International had a gross margin of -7.72% for the quarter that ended in Jun. 2026 => 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.
Dongwu Cement International Gross Margin % Related Terms
Dongwu Cement International 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.
HKSE:00695 vs CRH, MLM, VMC: Gross Margin % Comparison
For the Building Materials subindustry, Dongwu Cement International'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.
Dongwu Cement International Gross Margin % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Dongwu Cement International's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Dongwu Cement International'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.
Dongwu Cement International (HKSE:00695) has a Gross Margin % of -7.72% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Dongwu Cement International and its competitors. According to the industry distribution chart, Dongwu Cement International ranks #396 out of 400 companies in the Building Materials industry, placing it in the top 99%.
Is Dongwu Cement International's Gross Margin % too high?
Dongwu Cement International's current Gross Margin % is -7.72%. Based on the distribution chart, Dongwu Cement International ranks #396 out of 400 companies in the Building Materials industry, which is in the bottom quartile relative to peers. Overall, Dongwu Cement International has a GF Score™ of 38/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Dongwu Cement International's Gross Margin % compare to CRH and MLM?
According to the Building Materials industry distribution chart, Dongwu Cement International ranks #396 out of 400 companies for Gross Margin %. This places Dongwu Cement International in the lower half of its industry. The industry median Gross Margin % is 26.00. 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 Building Materials company?
The median Gross Margin % among Building Materials companies is 26.00, based on 400 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. 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 Dongwu Cement International and its competitors. For the Building Materials industry, the median Gross Margin % is 26.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dongwu Cement International's current Gross Margin % is -7.72%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dongwu Cement International stock overvalued right now?
Based on GuruFocus' analysis, Dongwu Cement International (HKSE:00695) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$1.68, compared to a current price of HK$7.88 — trading 369% above its estimated fair value. The current Gross Margin % is -7.72%. Dongwu Cement International's overall GF Score™ is 38/100 with 4 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 Dongwu Cement International (HKSE:00695), the current Gross Margin % is -7.72% as of Jun. 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 Dongwu Cement International (HKSE:00695) Overvalued in 2026?
Based on GuruFocus' analysis, Dongwu Cement International stock appears to be overvalued.
The current stock price of HK$7.88 is trading 369% above its estimated GF Value™ of HK$1.68.
GuruFocus considers Dongwu Cement International to be Significantly Overvalued.
Key valuation signals for HKSE:00695:
Gross Margin %: -7.72%
GF Value™: HK$1.68 vs. price of HK$7.88 (369% above fair value)
No single metric tells the full story. See the HKSE:00695 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dongwu Cement International Ltd is principally engaged in the production and export of cement. The company operates in segments namely Production and sale of cement, and Trading business. The company's revenue is generated from the Production and sale of cement. Geographically, the company operates in Jiangsu Province; Zhejiang Province; and Shanghai.
38GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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