Nine Dragons Paper (Holdings)NDGPF 49 Gross Margin % is 14.37% as of Dec. 2025, which is 13% below its 10-year median of 16.59. GuruFocus rates NDGPF with a GF Score™ of 49/100 and a GF Value™ of $0.71 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 279 Forest Products companies, Nine Dragons Paper (Holdings) ranks worse than 63.44% on this metric.
Nine Dragons Paper (Holdings) (OTCPK:NDGPF) 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
Nine Dragons Paper (Holdings) had a gross margin of 14.37% 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.
Nine Dragons Paper (Holdings) Gross Margin % Related Terms
Nine Dragons Paper (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.
Nine Dragons Paper (Holdings) Gross Margin % Chart
Nine Dragons Paper (Holdings) Gross Margin % Competitor Comparison
For the Paper & Paper Products subindustry, Nine Dragons Paper (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.
Nine Dragons Paper (Holdings) Gross Margin % vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Nine Dragons Paper (Holdings)'s Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nine Dragons Paper (Holdings)'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.
Nine Dragons Paper (Holdings) (NDGPF) has a Gross Margin % of 14.37% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Nine Dragons Paper (Holdings) and its competitors. This is 13% below median its historical median of 16.59. Over the past decade, Nine Dragons Paper (Holdings)'s Gross Margin % has ranged from 2.70 to 21.95. According to the industry distribution chart, Nine Dragons Paper (Holdings) ranks #177 out of 279 companies in the Forest Products industry, placing it in the top 63.4%.
Is Nine Dragons Paper (Holdings)'s Gross Margin % too high?
Nine Dragons Paper (Holdings)'s current Gross Margin % of 14.37% is 13% below median its 10-year median of 16.59. Over the past 10 years, this metric has ranged from a low of 2.70 to a high of 21.95. The Forest Products industry median Gross Margin % is 19.05. Nine Dragons Paper (Holdings)'s value of 14.37% is 24.6% below this industry median. Based on the distribution chart, Nine Dragons Paper (Holdings) ranks #177 out of 279 companies in the Forest Products industry, which is below the industry midpoint. Overall, Nine Dragons Paper (Holdings) has a GF Score™ of 49/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nine Dragons Paper (Holdings)'s Gross Margin % compare to competitors?
According to the Forest Products industry distribution chart, Nine Dragons Paper (Holdings) ranks #177 out of 279 companies for Gross Margin %. This places Nine Dragons Paper (Holdings) in the lower half of its industry. The industry median Gross Margin % is 19.05. Nine Dragons Paper (Holdings)'s value of 14.37% is 24.6% below this benchmark. Historically, Nine Dragons Paper (Holdings)'s own Gross Margin % has ranged from 2.70 to 21.95 over the past decade. While the company's 10-year median is 16.59 vs. the industry median of 19.05, Nine Dragons Paper (Holdings) 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. Nine Dragons Paper (Holdings)'s current Gross Margin % of 14.37% is 24.6% 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 Nine Dragons Paper (Holdings) 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. Nine Dragons Paper (Holdings)'s current Gross Margin % is 14.37%, which is 13% below median its own 10-year median of 16.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nine Dragons Paper (Holdings) stock overvalued right now?
Based on GuruFocus' analysis, Nine Dragons Paper (Holdings) (NDGPF) is currently considered Modestly Overvalued. The stock's GF Value™ is $0.71, compared to a current price of $0.90 — trading 26.8% above its estimated fair value. The current Gross Margin % is 14.37%, which is 13% below median its 10-year median of 16.59 and 24.6% below the Forest Products industry median of 19.05. Nine Dragons Paper (Holdings)'s overall GF Score™ is 49/100 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 Nine Dragons Paper (Holdings) (NDGPF), the current Gross Margin % is 14.37% 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 Nine Dragons Paper (Holdings) (NDGPF) Overvalued in 2026?
Based on GuruFocus' analysis, Nine Dragons Paper (Holdings) stock appears to be overvalued.
The current stock price of $0.90 is trading 26.8% above its estimated GF Value™ of $0.71.
GuruFocus considers Nine Dragons Paper (Holdings) to be Modestly Overvalued.
Key valuation signals for NDGPF:
Gross Margin %: 14.37% (13% below median its 10-year median of 16.59)
GF Value™: $0.71 vs. price of $0.90 (26.8% above fair value)
Industry Position: 24.6% below the Forest Products median (#177 of 279)
No single metric tells the full story. See the NDGPF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nine Dragons Paper (Holdings) Business Description
Nine Dragons Paper (Holdings) Ltd operates as a paper products manufacturer. The company is a pulp and paper manufacturing group specializing in the integrated production of pulp and paper, with main products including various kinds of environmentally friendly packaging paper, printing and writing paper, high-end virgin paper, and products from the entire upstream and downstream production chain. Covering the full industry spectrum, it offers kraftlinerboard, testlinerboard, white top linerboard, coated linerboard, bleached folding boxboard, high-performance corrugating medium, coated duplex board, gypsum board cover paper, and more.
49GF 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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