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Hubei Xingfa Chemicals Group Co (SHSE:600141) 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
Hubei Xingfa Chemicals Group Co had a gross margin of 13.67% 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.
Hubei Xingfa Chemicals Group Co Gross Margin % Related Terms
Hubei Xingfa Chemicals Group 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.
Hubei Xingfa Chemicals Group Co Gross Margin % Chart
For the Chemicals subindustry, Hubei Xingfa Chemicals 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.
Hubei Xingfa Chemicals Group Co Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Hubei Xingfa Chemicals Group Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hubei Xingfa Chemicals 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.
Hubei Xingfa Chemicals Group Co (SHSE:600141) has a Gross Margin % of 13.67% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Hubei Xingfa Chemicals Group Co and its competitors. This is 21% below median its historical median of 17.34. Over the past decade, Hubei Xingfa Chemicals Group Co's Gross Margin % has ranged from 13.02 to 35.61. According to the industry distribution chart, Hubei Xingfa Chemicals Group Co ranks #999 out of 1558 companies in the Chemicals industry, placing it in the top 64.1%.
Is Hubei Xingfa Chemicals Group Co's Gross Margin % too high?
Hubei Xingfa Chemicals Group Co's current Gross Margin % of 13.67% is 21% below median its 10-year median of 17.34. Over the past 10 years, this metric has ranged from a low of 13.02 to a high of 35.61. The Chemicals industry median Gross Margin % is 23.47. Hubei Xingfa Chemicals Group Co's value of 13.67% is 41.7% below this industry median. Based on the distribution chart, Hubei Xingfa Chemicals Group Co ranks #999 out of 1558 companies in the Chemicals industry, which is below the industry midpoint. Overall, Hubei Xingfa Chemicals Group Co has a GF Score™ of 79/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hubei Xingfa Chemicals Group Co's Gross Margin % compare to DOW?
According to the Chemicals industry distribution chart, Hubei Xingfa Chemicals Group Co ranks #999 out of 1558 companies for Gross Margin %. This places Hubei Xingfa Chemicals Group Co in the lower half of its industry. The industry median Gross Margin % is 23.47. Hubei Xingfa Chemicals Group Co's value of 13.67% is 41.7% below this benchmark. Historically, Hubei Xingfa Chemicals Group Co's own Gross Margin % has ranged from 13.02 to 35.61 over the past decade. While the company's 10-year median is 17.34 vs. the industry median of 23.47, Hubei Xingfa Chemicals 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 Chemicals company?
The median Gross Margin % among Chemicals companies is 23.47, based on 1,558 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. Hubei Xingfa Chemicals Group Co's current Gross Margin % of 13.67% is 41.7% 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 Hubei Xingfa Chemicals Group Co and its competitors. For the Chemicals industry, the median Gross Margin % is 23.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hubei Xingfa Chemicals Group Co's current Gross Margin % is 13.67%, which is 21% below median its own 10-year median of 17.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hubei Xingfa Chemicals Group Co stock overvalued right now?
Based on GuruFocus' analysis, Hubei Xingfa Chemicals Group Co (SHSE:600141) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥23.76, compared to a current price of ¥30.08 — trading 26.6% above its estimated fair value. The current Gross Margin % is 13.67%, which is 21% below median its 10-year median of 17.34 and 41.7% below the Chemicals industry median of 23.47. Hubei Xingfa Chemicals Group Co's overall GF Score™ is 79/100 with 11 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 Hubei Xingfa Chemicals Group Co (SHSE:600141), the current Gross Margin % is 13.67% 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 Hubei Xingfa Chemicals Group Co (SHSE:600141) Overvalued in 2026?
Based on GuruFocus' analysis, Hubei Xingfa Chemicals Group Co stock appears to be overvalued.
The current stock price of ¥30.08 is trading 26.6% above its estimated GF Value™ of ¥23.76.
GuruFocus considers Hubei Xingfa Chemicals Group Co to be Modestly Overvalued.
Key valuation signals for SHSE:600141:
Gross Margin %: 13.67% (21% below median its 10-year median of 17.34)
GF Value™: ¥23.76 vs. price of ¥30.08 (26.6% above fair value)
Industry Position: 41.7% below the Chemicals median (#999 of 1558)
No single metric tells the full story. See the SHSE:600141 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hubei Xingfa Chemicals Group Co Business Description
Hubei Xingfa Chemicals Group Co Ltd is engaged in the Mining and sales of phosphate rock, the production and sales of chemical products such as fine phosphates, phosphate fertilizers, organophosphorus pesticides, silicones and electronic chemicals.
79GF Score
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