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Beijing Enterprises Urban Resources Group (HKSE:03718) 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
Beijing Enterprises Urban Resources Group had a gross margin of 18.54% 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.
Beijing Enterprises Urban Resources Group Gross Margin % Related Terms
Beijing Enterprises Urban Resources Group 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.
Beijing Enterprises Urban Resources Group Gross Margin % Chart
Beijing Enterprises Urban Resources Group Annual Data
HKSE:03718 vs WM, RSG, WCN: Gross Margin % Comparison
For the Waste Management subindustry, Beijing Enterprises Urban Resources Group'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.
Beijing Enterprises Urban Resources Group Gross Margin % vs Waste Management Industry
* 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.
Beijing Enterprises Urban Resources Group (HKSE:03718) has a Gross Margin % of 18.54% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Beijing Enterprises Urban Resources Group and its competitors. This is 30% below median its historical median of 26.36. Over the past decade, Beijing Enterprises Urban Resources Group's Gross Margin % has ranged from 19.06 to 36.58. According to the industry distribution chart, Beijing Enterprises Urban Resources Group ranks #166 out of 234 companies in the Waste Management industry, placing it in the top 70.9%.
Is Beijing Enterprises Urban Resources Group's Gross Margin % too high?
Beijing Enterprises Urban Resources Group's current Gross Margin % of 18.54% is 30% below median its 10-year median of 26.36. Over the past 10 years, this metric has ranged from a low of 19.06 to a high of 36.58. The Waste Management industry median Gross Margin % is 27.71. Beijing Enterprises Urban Resources Group's value of 18.54% is 33.1% below this industry median. Based on the distribution chart, Beijing Enterprises Urban Resources Group ranks #166 out of 234 companies in the Waste Management industry, which is below the industry midpoint. Overall, Beijing Enterprises Urban Resources Group has a GF Score™ of 66/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Beijing Enterprises Urban Resources Group's Gross Margin % compare to WM and RSG?
According to the Waste Management industry distribution chart, Beijing Enterprises Urban Resources Group ranks #166 out of 234 companies for Gross Margin %. This places Beijing Enterprises Urban Resources Group in the lower half of its industry. The industry median Gross Margin % is 27.71. Beijing Enterprises Urban Resources Group's value of 18.54% is 33.1% below this benchmark. Historically, Beijing Enterprises Urban Resources Group's own Gross Margin % has ranged from 19.06 to 36.58 over the past decade. While the company's 10-year median is 26.36 vs. the industry median of 27.71, Beijing Enterprises Urban Resources Group 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 Waste Management company?
The median Gross Margin % among Waste Management companies is 27.71, based on 234 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. Beijing Enterprises Urban Resources Group's current Gross Margin % of 18.54% is 33.1% 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 Beijing Enterprises Urban Resources Group and its competitors. For the Waste Management industry, the median Gross Margin % is 27.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Beijing Enterprises Urban Resources Group's current Gross Margin % is 18.54%, which is 30% below median its own 10-year median of 26.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Beijing Enterprises Urban Resources Group stock overvalued right now?
Based on GuruFocus' analysis, Beijing Enterprises Urban Resources Group (HKSE:03718) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.65, compared to a current price of HK$0.41 — trading 37.7% below its estimated fair value. The current Gross Margin % is 18.54%, which is 30% below median its 10-year median of 26.36 and 33.1% below the Waste Management industry median of 27.71. Beijing Enterprises Urban Resources Group's overall GF Score™ is 66/100 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 Beijing Enterprises Urban Resources Group (HKSE:03718), the current Gross Margin % is 18.54% 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 Beijing Enterprises Urban Resources Group (HKSE:03718) Overvalued in 2026?
Based on GuruFocus' analysis, Beijing Enterprises Urban Resources Group stock appears to be undervalued.
The current stock price of HK$0.41 is trading 37.7% below its estimated GF Value™ of HK$0.65.
GuruFocus considers Beijing Enterprises Urban Resources Group to be Possible Value Trap.
Key valuation signals for HKSE:03718:
Gross Margin %: 18.54% (30% below median its 10-year median of 26.36)
GF Value™: HK$0.65 vs. price of HK$0.41 (37.7% below fair value)
Industry Position: 33.1% below the Waste Management median (#166 of 234)
No single metric tells the full story. See the HKSE:03718 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Beijing Enterprises Urban Resources Group Ltd is an integrated waste management solution provider in China. The company provides environmental hygiene services and hazardous waste treatment services. The urban services segment provides urban environmental governance services and construction services. The hazardous waste treatment segment provides hazardous waste treatment services. The other segment comprises the waste electrical and electronic equipment treatment services and the sale of dismantled products. All of the groups revenue from external customers was derived from the operations in the PRC.
66GF 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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