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HKSE:06888's Gross Margin % is ranked worse than 95.57% of 1738
companies
in the Construction industry
Industry Median: 20.685
vs HKSE:06888: 1.51
Freetech Road Recycling Technology (Holdings) had a gross margin of -55.89% for the quarter that ended in Jun. 2026 => No sustainable competitive advantage
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
Freetech Road Recycling Technology (Holdings) had a gross margin of -55.89% 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.
Freetech Road Recycling Technology (Holdings) Gross Margin % Related Terms
Freetech Road Recycling Technology (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.
For the Infrastructure Operations subindustry, Freetech Road Recycling Technology (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.
Freetech Road Recycling Technology (Holdings) Gross Margin % vs Construction 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.
Freetech Road Recycling Technology (Holdings) (HKSE:06888) has a Gross Margin % of -55.89% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Freetech Road Recycling Technology (Holdings) and its competitors. Over the past decade, Freetech Road Recycling Technology (Holdings)'s Gross Margin % has ranged from 1.51 to 47.87. According to the industry distribution chart, Freetech Road Recycling Technology (Holdings) ranks #1661 out of 1738 companies in the Construction industry, placing it in the top 95.6%.
Is Freetech Road Recycling Technology (Holdings)'s Gross Margin % too high?
Freetech Road Recycling Technology (Holdings)'s current Gross Margin % is -55.89%. Over the past 10 years, this metric has ranged from a low of 1.51 to a high of 47.87. Based on the distribution chart, Freetech Road Recycling Technology (Holdings) ranks #1661 out of 1738 companies in the Construction industry, which is in the bottom quartile relative to peers.
How does Freetech Road Recycling Technology (Holdings)'s Gross Margin % compare to competitors?
According to the Construction industry distribution chart, Freetech Road Recycling Technology (Holdings) ranks #1661 out of 1738 companies for Gross Margin %. This places Freetech Road Recycling Technology (Holdings) in the lower half of its industry. The industry median Gross Margin % is 20.69. Historically, Freetech Road Recycling Technology (Holdings)'s own Gross Margin % has ranged from 1.51 to 47.87 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 Construction company?
The median Gross Margin % among Construction companies is 20.69, based on 1,738 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 Freetech Road Recycling Technology (Holdings) and its competitors. For the Construction industry, the median Gross Margin % is 20.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Freetech Road Recycling Technology (Holdings)'s current Gross Margin % is -55.89%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Freetech Road Recycling Technology (Holdings) stock overvalued right now?
Based on GuruFocus' analysis, Freetech Road Recycling Technology (Holdings) (HKSE:06888) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$0.07, compared to a current price of HK$0.08 — trading 14.3% above its estimated fair value. The current Gross Margin % is -55.89%. 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 Freetech Road Recycling Technology (Holdings) (HKSE:06888), the current Gross Margin % is -55.89% 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.
Freetech Road Recycling Technology (Holdings) Ltd is an investment holding company engaged in the manufacturing and sale of road maintenance equipment and the provision of road maintenance services in the People's Republic of China (the PRC). The operating segments of the group are the APM service segment, where it provides APM services under the registered trademark (Road Doctor) to repair damaged asphalt pavement surfaces, and the APM equipment segment, where it manufactures and sells a wide range of APM equipment. It derives the majority of its revenue from APM Services. The company has a business presence in Mainland China and other overseas markets.
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