What is Shandong Xinhua Pharmaceutical Co Gross Margin %?
Shandong Xinhua Pharmaceutical CoSHNXY 75 Gross Margin % is 18.20% as of Mar. 2026, which is 34% below its 10-year median of 27.62. GuruFocus rates SHNXY with a GF Score™ of 75/100 and a GF Value™ of $21.89. The stock has 5 warning signs investors should review. Among 938 Drug Manufacturers companies, Shandong Xinhua Pharmaceutical Co ranks worse than 91.47% on this metric.
Shandong Xinhua Pharmaceutical Co (OTCPK:SHNXY) 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
Shandong Xinhua Pharmaceutical Co had a gross margin of 18.20% for the quarter that ended in Mar. 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.
Shandong Xinhua Pharmaceutical Co Gross Margin % Related Terms
Shandong Xinhua Pharmaceutical Co 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.
Shandong Xinhua Pharmaceutical Co Gross Margin % Chart
For the Drug Manufacturers - Specialty & Generic subindustry, Shandong Xinhua Pharmaceutical Co'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.
Shandong Xinhua Pharmaceutical Co Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Shandong Xinhua Pharmaceutical Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Shandong Xinhua Pharmaceutical Co'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.
Shandong Xinhua Pharmaceutical Co (SHNXY) has a Gross Margin % of 18.20% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Shandong Xinhua Pharmaceutical Co and its competitors. This is 34% below median its historical median of 27.62. Over the past decade, Shandong Xinhua Pharmaceutical Co's Gross Margin % has ranged from 18.63 to 33.44. According to the industry distribution chart, Shandong Xinhua Pharmaceutical Co ranks #858 out of 938 companies in the Drug Manufacturers industry, placing it in the top 91.5%.
Is Shandong Xinhua Pharmaceutical Co's Gross Margin % too high?
Shandong Xinhua Pharmaceutical Co's current Gross Margin % of 18.20% is 34% below median its 10-year median of 27.62. Over the past 10 years, this metric has ranged from a low of 18.63 to a high of 33.44. The Drug Manufacturers industry median Gross Margin % is 48.54. Shandong Xinhua Pharmaceutical Co's value of 18.20% is 62.5% below this industry median. Based on the distribution chart, Shandong Xinhua Pharmaceutical Co ranks #858 out of 938 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers. Overall, Shandong Xinhua Pharmaceutical Co has a GF Score™ of 75/100, reflecting its overall financial health beyond just this single metric.
How does Shandong Xinhua Pharmaceutical Co's Gross Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Shandong Xinhua Pharmaceutical Co ranks #858 out of 938 companies for Gross Margin %. This places Shandong Xinhua Pharmaceutical Co in the lower half of its industry. The industry median Gross Margin % is 48.54. Shandong Xinhua Pharmaceutical Co's value of 18.20% is 62.5% below this benchmark. Historically, Shandong Xinhua Pharmaceutical Co's own Gross Margin % has ranged from 18.63 to 33.44 over the past decade. While the company's 10-year median is 27.62 vs. the industry median of 48.54, Shandong Xinhua Pharmaceutical Co 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 Drug Manufacturers company?
The median Gross Margin % among Drug Manufacturers companies is 48.54, based on 938 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. Shandong Xinhua Pharmaceutical Co's current Gross Margin % of 18.20% is 62.5% 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 Shandong Xinhua Pharmaceutical Co and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shandong Xinhua Pharmaceutical Co's current Gross Margin % is 18.20%, which is 34% below median its own 10-year median of 27.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shandong Xinhua Pharmaceutical Co stock overvalued right now?
Shandong Xinhua Pharmaceutical Co (SHNXY) has a current Gross Margin % of 18.20%. The stock's GF Value™ is $21.89, compared to a current price of $18.19 — trading 16.9% below its estimated fair value. The current Gross Margin % is 18.20%, which is 34% below median its 10-year median of 27.62 and 62.5% below the Drug Manufacturers industry median of 48.54. Shandong Xinhua Pharmaceutical Co's overall GF Score™ is 75/100 with 5 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 Shandong Xinhua Pharmaceutical Co (SHNXY), the current Gross Margin % is 18.20% as of Mar. 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 Shandong Xinhua Pharmaceutical Co (SHNXY) Overvalued in 2026?
Based on GuruFocus' analysis, Shandong Xinhua Pharmaceutical Co stock appears to be undervalued.
The current stock price of $18.19 is trading 16.9% below its estimated GF Value™ of $21.89.
Key valuation signals for SHNXY:
Gross Margin %: 18.20% (34% below median its 10-year median of 27.62)
GF Value™: $21.89 vs. price of $18.19 (16.9% below fair value)
Industry Position: 62.5% below the Drug Manufacturers median (#858 of 938)
No single metric tells the full story. See the SHNXY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shandong Xinhua Pharmaceutical Co Business Description
Shandong Xinhua Pharmaceutical Co Ltd is a pharmaceutical products manufacturer based in China. It operates various segments namely Chemical raw materials, Preparations, Pharmaceutical intermediates and other products. The company is mainly engaged in the business of development, manufacture and sale of bulk pharmaceuticals, preparations and chemical products.
75GF Score
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