China Meheco Group CoSHSE:600056 +2.40%65 Gross Margin % is 10.61% as of Mar. 2026, which is 22% below its 10-year median of 13.52. GuruFocus rates SHSE:600056 with a GF Score™ of 65/100 and a GF Value™ of ¥10.48 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 116 Medical Distribution companies, China Meheco Group Co ranks worse than 68.1% on this metric.
SHSE:600056's Gross Margin % is ranked worse than 68.1% of 116
companies
in the Medical Distribution industry
Industry Median: 14.9
vs SHSE:600056: 10.51
China Meheco Group Co had a gross margin of 10.61% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for China Meheco Group Co was -9.50% per year.
China Meheco Group Co (SHSE:600056) 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 Meheco Group Co had a gross margin of 10.61% 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.
China Meheco Group Co Gross Margin % Related Terms
China Meheco Group Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for China Meheco Group Co's Gross Margin % can be seen below:
* 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.
SHSE:600056 vs MCK, CAH, COR: Gross Margin % Comparison
For the Medical Distribution subindustry, China Meheco Group 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.
China Meheco Group Co Gross Margin % vs Medical Distribution Industry
For the Medical Distribution industry and Healthcare sector, China Meheco Group Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where China Meheco Group 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.
China Meheco Group Co (SHSE:600056) has a Gross Margin % of 10.61% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on China Meheco Group Co and its competitors. This is 22% below median its historical median of 13.52. Over the past decade, China Meheco Group Co's Gross Margin % has ranged from 10.50 to 20.95. According to the industry distribution chart, China Meheco Group Co ranks #79 out of 116 companies in the Medical Distribution industry, placing it in the top 68.1%.
Is China Meheco Group Co's Gross Margin % too high?
China Meheco Group Co's current Gross Margin % of 10.61% is 22% below median its 10-year median of 13.52. Over the past 10 years, this metric has ranged from a low of 10.50 to a high of 20.95. The Medical Distribution industry median Gross Margin % is 14.90. China Meheco Group Co's value of 10.61% is 28.8% below this industry median. Based on the distribution chart, China Meheco Group Co ranks #79 out of 116 companies in the Medical Distribution industry, which is below the industry midpoint. Overall, China Meheco Group Co has a GF Score™ of 65/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Meheco Group Co's Gross Margin % compare to MCK and CAH?
According to the Medical Distribution industry distribution chart, China Meheco Group Co ranks #79 out of 116 companies for Gross Margin %. This places China Meheco Group Co in the lower half of its industry. The industry median Gross Margin % is 14.90. China Meheco Group Co's value of 10.61% is 28.8% below this benchmark. Historically, China Meheco Group Co's own Gross Margin % has ranged from 10.50 to 20.95 over the past decade. While the company's 10-year median is 13.52 vs. the industry median of 14.90, China Meheco Group 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 Medical Distribution company?
The median Gross Margin % among Medical Distribution companies is 14.90, based on 116 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 Meheco Group Co's current Gross Margin % of 10.61% is 28.8% 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 China Meheco Group Co and its competitors. For the Medical Distribution industry, the median Gross Margin % is 14.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Meheco Group Co's current Gross Margin % is 10.61%, which is 22% below median its own 10-year median of 13.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Meheco Group Co stock overvalued right now?
Based on GuruFocus' analysis, China Meheco Group Co (SHSE:600056) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥10.48, compared to a current price of ¥8.96 — trading 14.5% below its estimated fair value. The current Gross Margin % is 10.61%, which is 22% below median its 10-year median of 13.52 and 28.8% below the Medical Distribution industry median of 14.90. China Meheco Group Co's overall GF Score™ is 65/100 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 China Meheco Group Co (SHSE:600056), the current Gross Margin % is 10.61% 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 China Meheco Group Co (SHSE:600056) Overvalued in 2026?
Based on GuruFocus' analysis, China Meheco Group Co stock appears to be undervalued.
The current stock price of ¥8.96 is trading 14.5% below its estimated GF Value™ of ¥10.48.
GuruFocus considers China Meheco Group Co to be Modestly Undervalued.
Key valuation signals for SHSE:600056:
Gross Margin %: 10.61% (22% below median its 10-year median of 13.52)
GF Value™: ¥10.48 vs. price of ¥8.96 (14.5% below fair value)
Industry Position: 28.8% below the Medical Distribution median (#79 of 116)
No single metric tells the full story. See the SHSE:600056 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Meheco Group Co Ltd is engaged in the distribution and trading of botanical medicines, medical instruments, and pharmaceuticals. It offers botanic medicines and herbal products, as well as exports of natural medicines, including herbs, spices, plant extracts, bee products, and Chinese traditional medicines. The company's business scope covers the whole industry chain, from research and development, cultivation and processing, manufacturing, distribution, and logistics to international trading, academic promotion, and technical service. The corporation provides trading services for customers in the pharmaceutical and chemical field, covering APIs, preparations, biologicals, blood products, and others.
65GF Score
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