Shenguan Holdings GroupSHGXY 34 Gross Margin % is 9.15% as of Dec. 2025, which is 61% below its 10-year median of 23.58. GuruFocus rates SHGXY with a GF Score™ of 34/100 and a GF Value™ of $0.81 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 1,900 Consumer Packaged Goods companies, Shenguan Holdings Group ranks worse than 85% on this metric.
SHGXY's Gross Margin % is ranked worse than 85% of 1900
companies
in the Consumer Packaged Goods industry
Industry Median: 26.37
vs SHGXY: 10.23
Shenguan Holdings Group had a gross margin of 9.15% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Shenguan Holdings Group was -15.30% per year.
Shenguan Holdings Group (OTCPK:SHGXY) 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
Shenguan Holdings Group had a gross margin of 9.15% 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.
Shenguan Holdings Group Gross Margin % Related Terms
Shenguan Holdings 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.
For the Packaged Foods subindustry, Shenguan Holdings 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.
Shenguan Holdings Group Gross Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Shenguan Holdings Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Shenguan Holdings Group'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.
Shenguan Holdings Group (SHGXY) has a Gross Margin % of 9.15% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Shenguan Holdings Group and its competitors. This is 61% below median its historical median of 23.58. Over the past decade, Shenguan Holdings Group's Gross Margin % has ranged from 10.23 to 34.77. According to the industry distribution chart, Shenguan Holdings Group ranks #1615 out of 1900 companies in the Consumer Packaged Goods industry, placing it in the top 85%.
Is Shenguan Holdings Group's Gross Margin % too high?
Shenguan Holdings Group's current Gross Margin % of 9.15% is 61% below median its 10-year median of 23.58. Over the past 10 years, this metric has ranged from a low of 10.23 to a high of 34.77. The Consumer Packaged Goods industry median Gross Margin % is 26.37. Shenguan Holdings Group's value of 9.15% is 65.3% below this industry median. Based on the distribution chart, Shenguan Holdings Group ranks #1615 out of 1900 companies in the Consumer Packaged Goods industry, which is in the bottom quartile relative to peers. Overall, Shenguan Holdings Group has a GF Score™ of 34/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Shenguan Holdings Group's Gross Margin % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Shenguan Holdings Group ranks #1615 out of 1900 companies for Gross Margin %. This places Shenguan Holdings Group in the lower half of its industry. The industry median Gross Margin % is 26.37. Shenguan Holdings Group's value of 9.15% is 65.3% below this benchmark. Historically, Shenguan Holdings Group's own Gross Margin % has ranged from 10.23 to 34.77 over the past decade. While the company's 10-year median is 23.58 vs. the industry median of 26.37, Shenguan Holdings 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 Consumer Packaged Goods company?
The median Gross Margin % among Consumer Packaged Goods companies is 26.37, based on 1,900 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. Shenguan Holdings Group's current Gross Margin % of 9.15% is 65.3% 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 Shenguan Holdings Group and its competitors. For the Consumer Packaged Goods industry, the median Gross Margin % is 26.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shenguan Holdings Group's current Gross Margin % is 9.15%, which is 61% below median its own 10-year median of 23.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shenguan Holdings Group stock overvalued right now?
Based on GuruFocus' analysis, Shenguan Holdings Group (SHGXY) is currently considered Possible Value Trap. The stock's GF Value™ is $0.81, compared to a current price of $0.45 — trading 45% below its estimated fair value. The current Gross Margin % is 9.15%, which is 61% below median its 10-year median of 23.58 and 65.3% below the Consumer Packaged Goods industry median of 26.37. Shenguan Holdings Group's overall GF Score™ is 34/100 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 Shenguan Holdings Group (SHGXY), the current Gross Margin % is 9.15% 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 Shenguan Holdings Group (SHGXY) Overvalued in 2026?
Based on GuruFocus' analysis, Shenguan Holdings Group stock appears to be undervalued.
The current stock price of $0.45 is trading 45% below its estimated GF Value™ of $0.81.
GuruFocus considers Shenguan Holdings Group to be Possible Value Trap.
Key valuation signals for SHGXY:
Gross Margin %: 9.15% (61% below median its 10-year median of 23.58)
GF Value™: $0.81 vs. price of $0.45 (45% below fair value)
Industry Position: 65.3% below the Consumer Packaged Goods median (#1615 of 1900)
No single metric tells the full story. See the SHGXY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shenguan Holdings Group Ltd is an investment holding company. It is engaged in the manufacture and sale of edible collagen sausage casing products, collagen food products, collagen skin care products and polymer collagen medical biomaterials. The company generates a majority of its revenue from edible collagen sausage casing products. Geographically, the company generates a majority of its revenue from Mainland China followed by Asia and Other countries.
34GF Score
Get the complete analysis for SHGXY
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
SHGXY has been successfully added to your 
