SHSE:600111's Gross Margin % is ranked worse than 70.43% of 727
companies
in the Metals & Mining industry
Industry Median: 26.2
vs SHSE:600111: 12.68
China Northern Rare Earth (Group) High-Tech Co had a gross margin of 13.22% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
China Northern Rare Earth (Group) High-Tech Co (SHSE:600111) 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 Northern Rare Earth (Group) High-Tech Co had a gross margin of 13.22% 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 Northern Rare Earth (Group) High-Tech Co Gross Margin % Related Terms
China Northern Rare Earth (Group) High-Tech 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.
China Northern Rare Earth (Group) High-Tech Co Gross Margin % Chart
China Northern Rare Earth (Group) High-Tech Co Annual Data
China Northern Rare Earth (Group) High-Tech Co Gross Margin % Competitor Comparison
For the Other Industrial Metals & Mining subindustry, China Northern Rare Earth (Group) High-Tech 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 Northern Rare Earth (Group) High-Tech Co Gross Margin % vs Metals & Mining Industry
* 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 Northern Rare Earth (Group) High-Tech Co (SHSE:600111) has a Gross Margin % of 13.22% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on China Northern Rare Earth (Group) High-Tech Co and its competitors. This is near median its historical median of 14.56. Over the past decade, China Northern Rare Earth (Group) High-Tech Co's Gross Margin % has ranged from 10.25 to 27.84. According to the industry distribution chart, China Northern Rare Earth (Group) High-Tech Co ranks #512 out of 727 companies in the Metals & Mining industry, placing it in the top 70.4%.
Is China Northern Rare Earth (Group) High-Tech Co's Gross Margin % too high?
China Northern Rare Earth (Group) High-Tech Co's current Gross Margin % of 13.22% is near median its 10-year median of 14.56. Over the past 10 years, this metric has ranged from a low of 10.25 to a high of 27.84. The Metals & Mining industry median Gross Margin % is 26.20. China Northern Rare Earth (Group) High-Tech Co's value of 13.22% is 49.5% below this industry median. Based on the distribution chart, China Northern Rare Earth (Group) High-Tech Co ranks #512 out of 727 companies in the Metals & Mining industry, which is below the industry midpoint. Overall, China Northern Rare Earth (Group) High-Tech Co has a GF Score™ of 86/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does China Northern Rare Earth (Group) High-Tech Co's Gross Margin % compare to competitors?
According to the Metals & Mining industry distribution chart, China Northern Rare Earth (Group) High-Tech Co ranks #512 out of 727 companies for Gross Margin %. This places China Northern Rare Earth (Group) High-Tech Co in the lower half of its industry. The industry median Gross Margin % is 26.20. China Northern Rare Earth (Group) High-Tech Co's value of 13.22% is 49.5% below this benchmark. Historically, China Northern Rare Earth (Group) High-Tech Co's own Gross Margin % has ranged from 10.25 to 27.84 over the past decade. While the company's 10-year median is 14.56 vs. the industry median of 26.20, China Northern Rare Earth (Group) High-Tech 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 Metals & Mining company?
The median Gross Margin % among Metals & Mining companies is 26.20, based on 727 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 Northern Rare Earth (Group) High-Tech Co's current Gross Margin % of 13.22% is 49.5% 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 China Northern Rare Earth (Group) High-Tech Co and its competitors. For the Metals & Mining industry, the median Gross Margin % is 26.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Northern Rare Earth (Group) High-Tech Co's current Gross Margin % is 13.22%, which is near median its own 10-year median of 14.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Northern Rare Earth (Group) High-Tech Co stock overvalued right now?
Based on GuruFocus' analysis, China Northern Rare Earth (Group) High-Tech Co (SHSE:600111) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥32.10, compared to a current price of ¥48.57 — trading 51.3% above its estimated fair value. The current Gross Margin % is 13.22%, which is near median its 10-year median of 14.56 and 49.5% below the Metals & Mining industry median of 26.20. China Northern Rare Earth (Group) High-Tech Co's overall GF Score™ is 86/100 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 China Northern Rare Earth (Group) High-Tech Co (SHSE:600111), the current Gross Margin % is 13.22% 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 Northern Rare Earth (Group) High-Tech Co (SHSE:600111) Overvalued in 2026?
Based on GuruFocus' analysis, China Northern Rare Earth (Group) High-Tech Co stock appears to be overvalued.
The current stock price of ¥48.57 is trading 51.3% above its estimated GF Value™ of ¥32.10.
GuruFocus considers China Northern Rare Earth (Group) High-Tech Co to be Significantly Overvalued.
Key valuation signals for SHSE:600111:
Gross Margin %: 13.22% (near median its 10-year median of 14.56)
GF Value™: ¥32.10 vs. price of ¥48.57 (51.3% above fair value)
Industry Position: 49.5% below the Metals & Mining median (#512 of 727)
No single metric tells the full story. See the SHSE:600111 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Northern Rare Earth (Group) High-Tech Co Business Description
China Northern Rare Earth (Group) High-Tech Co Ltd is a China-based company operating in the non-ferrous metal smelting and rolling processing industry. It refines and sells rare earth minerals and resources. The company operates through four segments. The Trading Business segment focuses on the distribution of rare earth raw materials. The Production Business segment is involved in the manufacturing of these raw materials. The Rare Earth Functional Materials and Application Products segment covers the development and sale of rare earth-based materials and their applications. The Environmental Protection Industry and Others segment provides services related to environmental management, including the treatment and recycling of waste gas, wastewater, and solid waste.
86GF Score
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