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Ever Reach Group (Holdings) Co (HKSE:03616) 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
Ever Reach Group (Holdings) Co had a gross margin of -5.23% 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.
Ever Reach Group (Holdings) Co Gross Margin % Related Terms
Ever Reach Group (Holdings) 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.
Ever Reach Group (Holdings) Co Gross Margin % Chart
Ever Reach Group (Holdings) Co Gross Margin % Competitor Comparison
For the Real Estate - Development subindustry, Ever Reach Group (Holdings) 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.
Ever Reach Group (Holdings) Co Gross Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Ever Reach Group (Holdings) Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ever Reach Group (Holdings) 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.
Ever Reach Group (Holdings) Co (HKSE:03616) has a Gross Margin % of -5.23% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Ever Reach Group (Holdings) Co and its competitors. Over the past decade, Ever Reach Group (Holdings) Co's Gross Margin % has ranged from 2.64 to 38.77. According to the industry distribution chart, Ever Reach Group (Holdings) Co ranks #1538 out of 1643 companies in the Real Estate industry, placing it in the top 93.6%.
Is Ever Reach Group (Holdings) Co's Gross Margin % too high?
Ever Reach Group (Holdings) Co's current Gross Margin % is -5.23%. Over the past 10 years, this metric has ranged from a low of 2.64 to a high of 38.77. Based on the distribution chart, Ever Reach Group (Holdings) Co ranks #1538 out of 1643 companies in the Real Estate industry, which is in the bottom quartile relative to peers. Overall, Ever Reach Group (Holdings) Co has a GF Score™ of 53/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ever Reach Group (Holdings) Co's Gross Margin % compare to competitors?
According to the Real Estate industry distribution chart, Ever Reach Group (Holdings) Co ranks #1538 out of 1643 companies for Gross Margin %. This places Ever Reach Group (Holdings) Co in the lower half of its industry. The industry median Gross Margin % is 36.31. Historically, Ever Reach Group (Holdings) Co's own Gross Margin % has ranged from 2.64 to 38.77 over the past decade. 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 Real Estate company?
The median Gross Margin % among Real Estate companies is 36.31, based on 1,643 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 Ever Reach Group (Holdings) Co and its competitors. For the Real Estate industry, the median Gross Margin % is 36.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ever Reach Group (Holdings) Co's current Gross Margin % is -5.23%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ever Reach Group (Holdings) Co stock overvalued right now?
Based on GuruFocus' analysis, Ever Reach Group (Holdings) Co (HKSE:03616) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.18, compared to a current price of HK$0.25 — trading 37.2% above its estimated fair value. The current Gross Margin % is -5.23%. Ever Reach Group (Holdings) Co's overall GF Score™ is 53/100 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 Ever Reach Group (Holdings) Co (HKSE:03616), the current Gross Margin % is -5.23% 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 Ever Reach Group (Holdings) Co (HKSE:03616) Overvalued in 2026?
Based on GuruFocus' analysis, Ever Reach Group (Holdings) Co stock appears to be overvalued.
The current stock price of HK$0.25 is trading 37.2% above its estimated GF Value™ of HK$0.18.
GuruFocus considers Ever Reach Group (Holdings) Co to be Significantly Overvalued.
Key valuation signals for HKSE:03616:
Gross Margin %: -5.23%
GF Value™: HK$0.18 vs. price of HK$0.25 (37.2% above fair value)
No single metric tells the full story. See the HKSE:03616 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ever Reach Group (Holdings) Co Ltd is an investment holding company. The company and its subsidiaries are principally engaged in the property development business in the People's Republic of China (PRC). Some of its projects include Xuchang Hengda Urban Garden, Xuchang Hengda Wenfeng City Garden, and Luohe Hengda Huatai New Building in China.
53GF Score
Get the complete analysis for HKSE:03616
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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