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China Demeter Financial Investments (HKSE:08120) 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
China Demeter Financial Investments had a gross margin of 80.56% for the quarter that ended in Jun. 2026 => Durable 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.
China Demeter Financial Investments Gross Margin % Related Terms
China Demeter Financial Investments 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.
China Demeter Financial Investments Gross Margin % Chart
HKSE:08120 vs MCD, SBUX, CMG: Gross Margin % Comparison
For the Restaurants subindustry, China Demeter Financial Investments'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.
China Demeter Financial Investments Gross Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, China Demeter Financial Investments's Gross Margin % distribution charts can be found below:
* The bar in red indicates where China Demeter Financial Investments'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.
China Demeter Financial Investments (HKSE:08120) has a Gross Margin % of 80.56% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on China Demeter Financial Investments and its competitors. This is 23% above median its historical median of 65.62. Over the past decade, China Demeter Financial Investments' Gross Margin % has ranged from 31.89 to 78.39. According to the industry distribution chart, China Demeter Financial Investments ranks #9 out of 354 companies in the Restaurants industry, placing it in the top 2.5%.
Is China Demeter Financial Investments' Gross Margin % too high?
China Demeter Financial Investments' current Gross Margin % of 80.56% is 23% above median its 10-year median of 65.62. Over the past 10 years, this metric has ranged from a low of 31.89 to a high of 78.39. The Restaurants industry median Gross Margin % is 45.58. China Demeter Financial Investments' value of 80.56% is 76.8% above this industry median. Based on the distribution chart, China Demeter Financial Investments ranks #9 out of 354 companies in the Restaurants industry, which is in the top quartile — a strong position relative to peers. Overall, China Demeter Financial Investments has a GF Score™ of 19/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does China Demeter Financial Investments' Gross Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, China Demeter Financial Investments ranks #9 out of 354 companies for Gross Margin %. This places China Demeter Financial Investments in the top 3% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 45.58. China Demeter Financial Investments' value of 80.56% is 76.8% above this benchmark. Historically, China Demeter Financial Investments' own Gross Margin % has ranged from 31.89 to 78.39 over the past decade. While the company's 10-year median is 65.62 vs. the industry median of 45.58, China Demeter Financial Investments has consistently been above 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 Restaurants company?
The median Gross Margin % among Restaurants companies is 45.58, based on 354 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. China Demeter Financial Investments's current Gross Margin % of 80.56% is 76.8% above 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 China Demeter Financial Investments and its competitors. For the Restaurants industry, the median Gross Margin % is 45.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Demeter Financial Investments's current Gross Margin % is 80.56%, which is 23% above median its own 10-year median of 65.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Demeter Financial Investments stock overvalued right now?
Based on GuruFocus' analysis, China Demeter Financial Investments (HKSE:08120) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.18, compared to a current price of HK$2.14 — trading 1086.1% above its estimated fair value. The current Gross Margin % is 80.56%, which is 23% above median its 10-year median of 65.62 and 76.8% above the Restaurants industry median of 45.58. China Demeter Financial Investments' overall GF Score™ is 19/100 with 8 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 China Demeter Financial Investments (HKSE:08120), the current Gross Margin % is 80.56% 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 China Demeter Financial Investments (HKSE:08120) Overvalued in 2026?
Based on GuruFocus' analysis, China Demeter Financial Investments stock appears to be overvalued.
The current stock price of HK$2.14 is trading 1086.1% above its estimated GF Value™ of HK$0.18.
GuruFocus considers China Demeter Financial Investments to be Significantly Overvalued.
Key valuation signals for HKSE:08120:
Gross Margin %: 80.56% (23% above median its 10-year median of 65.62)
GF Value™: HK$0.18 vs. price of HK$2.14 (1086.1% above fair value)
Industry Position: 76.8% above the Restaurants median (#9 of 354)
No single metric tells the full story. See the HKSE:08120 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Demeter Financial Investments Ltd is an investment holding company. Its operating segments include money lending, which comprises provision of loan financing in Hong Kong; financial services, which includes advising and dealing in securities and asset management; securities investment, which comprises investment in listed securities; and the food and beverage segment in Hong Kong, which generates maximum revenue. The Group is also engaged in alcoholic beverage distribution and miscellaneous business, which includes sales of premium wine and whisky, trading of miscellaneous goods in Hong Kong, and provision of business advisory services, and children education services, which comprises kindergarten or pre-school education business. It operates in Hong Kong.
19GF Score
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