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Watts International Maritime Co (HKSE:02258) 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
Watts International Maritime Co had a gross margin of 11.65% 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.
Watts International Maritime Co Gross Margin % Related Terms
Watts International Maritime 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.
Watts International Maritime Co Gross Margin % Chart
Watts International Maritime Co Gross Margin % Competitor Comparison
For the Infrastructure Operations subindustry, Watts International Maritime 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.
Watts International Maritime Co Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Watts International Maritime Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Watts International Maritime 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.
Watts International Maritime Co (HKSE:02258) has a Gross Margin % of 11.65% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Watts International Maritime Co and its competitors. This is 15% above median its historical median of 10.10. Over the past decade, Watts International Maritime Co's Gross Margin % has ranged from 6.42 to 13.25. According to the industry distribution chart, Watts International Maritime Co ranks #1408 out of 1731 companies in the Construction industry, placing it in the top 81.3%.
Is Watts International Maritime Co's Gross Margin % too high?
Watts International Maritime Co's current Gross Margin % of 11.65% is 15% above median its 10-year median of 10.10. Over the past 10 years, this metric has ranged from a low of 6.42 to a high of 13.25. The Construction industry median Gross Margin % is 20.84. Watts International Maritime Co's value of 11.65% is 44.1% below this industry median. Based on the distribution chart, Watts International Maritime Co ranks #1408 out of 1731 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, Watts International Maritime Co has a GF Score™ of 46/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Watts International Maritime Co's Gross Margin % compare to competitors?
According to the Construction industry distribution chart, Watts International Maritime Co ranks #1408 out of 1731 companies for Gross Margin %. This places Watts International Maritime Co in the lower half of its industry. The industry median Gross Margin % is 20.84. Watts International Maritime Co's value of 11.65% is 44.1% below this benchmark. Historically, Watts International Maritime Co's own Gross Margin % has ranged from 6.42 to 13.25 over the past decade. While the company's 10-year median is 10.10 vs. the industry median of 20.84, Watts International Maritime Co 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 Construction company?
The median Gross Margin % among Construction companies is 20.84, based on 1,731 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. Watts International Maritime Co's current Gross Margin % of 11.65% is 44.1% 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 Watts International Maritime Co and its competitors. For the Construction industry, the median Gross Margin % is 20.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Watts International Maritime Co's current Gross Margin % is 11.65%, which is 15% above median its own 10-year median of 10.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Watts International Maritime Co stock overvalued right now?
Based on GuruFocus' analysis, Watts International Maritime Co (HKSE:02258) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.21, compared to a current price of HK$0.30 — trading 42.9% above its estimated fair value. The current Gross Margin % is 11.65%, which is 15% above median its 10-year median of 10.10 and 44.1% below the Construction industry median of 20.84. Watts International Maritime Co's overall GF Score™ is 46/100 with 6 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 Watts International Maritime Co (HKSE:02258), the current Gross Margin % is 11.65% 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 Watts International Maritime Co (HKSE:02258) Overvalued in 2026?
Based on GuruFocus' analysis, Watts International Maritime Co stock appears to be overvalued.
The current stock price of HK$0.30 is trading 42.9% above its estimated GF Value™ of HK$0.21.
GuruFocus considers Watts International Maritime Co to be Significantly Overvalued.
Key valuation signals for HKSE:02258:
Gross Margin %: 11.65% (15% above median its 10-year median of 10.10)
GF Value™: HK$0.21 vs. price of HK$0.30 (42.9% above fair value)
Industry Position: 44.1% below the Construction median (#1408 of 1731)
No single metric tells the full story. See the HKSE:02258 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Watts International Maritime Co Ltd is a port, waterway, maritime engineering and municipal public engineering services provider in the PRC and provides services of port infrastructure, waterway engineering, construction of public infrastructure within cities, urban greening and construction of buildings. Its segments include Marine construction, including infrastructure construction of ports, waterway engineering and other services; and Municipal public construction, including construction of public infrastructure within cities, urban greening and construction of buildings.
46GF Score
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