Lee & Man Paper ManufacturingLMPMY -6.09%69 Gross Margin % is 15.02% as of Dec. 2025, which is 17% below its 10-year median of 18.15. GuruFocus rates LMPMY with a GF Score™ of 69/100 and a GF Value™ of $3.04 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 279 Forest Products companies, Lee & Man Paper Manufacturing ranks worse than 62.01% on this metric.
Lee & Man Paper Manufacturing (OTCPK:LMPMY) 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
Lee & Man Paper Manufacturing had a gross margin of 15.02% 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.
Lee & Man Paper Manufacturing Gross Margin % Related Terms
Lee & Man Paper Manufacturing 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.
Lee & Man Paper Manufacturing Gross Margin % Chart
Lee & Man Paper Manufacturing Gross Margin % Competitor Comparison
For the Paper & Paper Products subindustry, Lee & Man Paper Manufacturing'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.
Lee & Man Paper Manufacturing Gross Margin % vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Lee & Man Paper Manufacturing's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Lee & Man Paper Manufacturing'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.
Lee & Man Paper Manufacturing (LMPMY) has a Gross Margin % of 15.02% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Lee & Man Paper Manufacturing and its competitors. This is 17% below median its historical median of 18.15. Over the past decade, Lee & Man Paper Manufacturing's Gross Margin % has ranged from 9.23 to 29.08. According to the industry distribution chart, Lee & Man Paper Manufacturing ranks #173 out of 279 companies in the Forest Products industry, placing it in the top 62%.
Is Lee & Man Paper Manufacturing's Gross Margin % too high?
Lee & Man Paper Manufacturing's current Gross Margin % of 15.02% is 17% below median its 10-year median of 18.15. Over the past 10 years, this metric has ranged from a low of 9.23 to a high of 29.08. The Forest Products industry median Gross Margin % is 19.05. Lee & Man Paper Manufacturing's value of 15.02% is 21.2% below this industry median. Based on the distribution chart, Lee & Man Paper Manufacturing ranks #173 out of 279 companies in the Forest Products industry, which is below the industry midpoint. Overall, Lee & Man Paper Manufacturing has a GF Score™ of 69/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lee & Man Paper Manufacturing's Gross Margin % compare to competitors?
According to the Forest Products industry distribution chart, Lee & Man Paper Manufacturing ranks #173 out of 279 companies for Gross Margin %. This places Lee & Man Paper Manufacturing in the lower half of its industry. The industry median Gross Margin % is 19.05. Lee & Man Paper Manufacturing's value of 15.02% is 21.2% below this benchmark. Historically, Lee & Man Paper Manufacturing's own Gross Margin % has ranged from 9.23 to 29.08 over the past decade. While the company's 10-year median is 18.15 vs. the industry median of 19.05, Lee & Man Paper Manufacturing 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 Forest Products company?
The median Gross Margin % among Forest Products companies is 19.05, based on 279 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. Lee & Man Paper Manufacturing's current Gross Margin % of 15.02% is 21.2% 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 Lee & Man Paper Manufacturing and its competitors. For the Forest Products industry, the median Gross Margin % is 19.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lee & Man Paper Manufacturing's current Gross Margin % is 15.02%, which is 17% below median its own 10-year median of 18.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lee & Man Paper Manufacturing stock overvalued right now?
Based on GuruFocus' analysis, Lee & Man Paper Manufacturing (LMPMY) is currently considered Modestly Overvalued. The stock's GF Value™ is $3.04, compared to a current price of $3.70 — trading 21.7% above its estimated fair value. The current Gross Margin % is 15.02%, which is 17% below median its 10-year median of 18.15 and 21.2% below the Forest Products industry median of 19.05. Lee & Man Paper Manufacturing's overall GF Score™ is 69/100 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 Lee & Man Paper Manufacturing (LMPMY), the current Gross Margin % is 15.02% 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 Lee & Man Paper Manufacturing (LMPMY) Overvalued in 2026?
Based on GuruFocus' analysis, Lee & Man Paper Manufacturing stock appears to be overvalued.
The current stock price of $3.70 is trading 21.7% above its estimated GF Value™ of $3.04.
GuruFocus considers Lee & Man Paper Manufacturing to be Modestly Overvalued.
Key valuation signals for LMPMY:
Gross Margin %: 15.02% (17% below median its 10-year median of 18.15)
GF Value™: $3.04 vs. price of $3.70 (21.7% above fair value)
Industry Position: 21.2% below the Forest Products median (#173 of 279)
No single metric tells the full story. See the LMPMY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lee & Man Paper Manufacturing Business Description
Lee & Man Paper Manufacturing Ltd is an investment holding company engaged in the manufacturing and trading of paper and pulp. Its segments are Packaging Paper, Pulp, and Tissue paper. The majority of the revenue is generated from the packaging paper segment that covers the production of kraft liner board, test liner board, coated duplex board, white top liner board, and strength corrugating medium. Its products include Wood pulp products, Boxboard paper products, Pink Gray Card Products, and Toilet Paper Products. The company generates maximum revenue from PRC, and also has its presence in Malaysia; Vietnam; and Hong Kong, Macau and others.
69GF Score
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