North Electro-Optic CoSHSE:600184 -6.99%55 Gross Margin % is 28.34% as of Mar. 2026, which is 121% above its 10-year median of 12.83. GuruFocus rates SHSE:600184 with a GF Score™ of 55/100 and a GF Value™ of ¥13.33 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 342 Aerospace & Defense companies, North Electro-Optic Co ranks worse than 67.54% on this metric.
SHSE:600184's Gross Margin % is ranked worse than 67.54% of 342
companies
in the Aerospace & Defense industry
Industry Median: 26.65
vs SHSE:600184: 19.29
North Electro-Optic Co had a gross margin of 28.34% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for North Electro-Optic Co was 4.30% per year.
North Electro-Optic Co (SHSE:600184) 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
North Electro-Optic Co had a gross margin of 28.34% for the quarter that ended in Mar. 2026 => Competition eroding margins
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.
North Electro-Optic Co Gross Margin % Related Terms
North Electro-Optic Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for North Electro-Optic 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:600184 vs SPCX, GE, RTX: Gross Margin % Comparison
For the Aerospace & Defense subindustry, North Electro-Optic 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.
North Electro-Optic Co Gross Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, North Electro-Optic Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where North Electro-Optic 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.
North Electro-Optic Co (SHSE:600184) has a Gross Margin % of 28.34% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on North Electro-Optic Co and its competitors. This is 121% above median its historical median of 12.83. Over the past decade, North Electro-Optic Co's Gross Margin % has ranged from 9.81 to 19.29. According to the industry distribution chart, North Electro-Optic Co ranks #231 out of 342 companies in the Aerospace & Defense industry, placing it in the top 67.5%.
Is North Electro-Optic Co's Gross Margin % too high?
North Electro-Optic Co's current Gross Margin % of 28.34% is 121% above median its 10-year median of 12.83. Over the past 10 years, this metric has ranged from a low of 9.81 to a high of 19.29. The Aerospace & Defense industry median Gross Margin % is 26.65. North Electro-Optic Co's value of 28.34% is 6.3% above this industry median. Based on the distribution chart, North Electro-Optic Co ranks #231 out of 342 companies in the Aerospace & Defense industry, which is below the industry midpoint. Overall, North Electro-Optic Co has a GF Score™ of 55/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does North Electro-Optic Co's Gross Margin % compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, North Electro-Optic Co ranks #231 out of 342 companies for Gross Margin %. This places North Electro-Optic Co in the lower half of its industry. The industry median Gross Margin % is 26.65. North Electro-Optic Co's value of 28.34% is 6.3% above this benchmark. Historically, North Electro-Optic Co's own Gross Margin % has ranged from 9.81 to 19.29 over the past decade. While the company's 10-year median is 12.83 vs. the industry median of 26.65, North Electro-Optic Co has consistently been above 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 an Aerospace & Defense company?
The median Gross Margin % among Aerospace & Defense companies is 26.65, based on 342 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. North Electro-Optic Co's current Gross Margin % of 28.34% is 6.3% above 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 North Electro-Optic Co and its competitors. For the Aerospace & Defense industry, the median Gross Margin % is 26.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. North Electro-Optic Co's current Gross Margin % is 28.34%, which is 121% above median its own 10-year median of 12.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is North Electro-Optic Co stock overvalued right now?
Based on GuruFocus' analysis, North Electro-Optic Co (SHSE:600184) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥13.33, compared to a current price of ¥21.30 — trading 59.8% above its estimated fair value. The current Gross Margin % is 28.34%, which is 121% above median its 10-year median of 12.83 and 6.3% above the Aerospace & Defense industry median of 26.65. North Electro-Optic Co's overall GF Score™ is 55/100 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 North Electro-Optic Co (SHSE:600184), the current Gross Margin % is 28.34% 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 North Electro-Optic Co (SHSE:600184) Overvalued in 2026?
Based on GuruFocus' analysis, North Electro-Optic Co stock appears to be overvalued.
The current stock price of ¥21.30 is trading 59.8% above its estimated GF Value™ of ¥13.33.
GuruFocus considers North Electro-Optic Co to be Significantly Overvalued.
Key valuation signals for SHSE:600184:
Gross Margin %: 28.34% (121% above median its 10-year median of 12.83)
GF Value™: ¥13.33 vs. price of ¥21.30 (59.8% above fair value)
Industry Position: 6.3% above the Aerospace & Defense median (#231 of 342)
No single metric tells the full story. See the SHSE:600184 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
North Electro-Optic Co Ltd is a China-based company mainly engaged in the research and development, design, manufacture, and distribution of optoelectronic defense products. The company is also engaged in the manufacture and sales of optoelectronic materials and components.
55GF Score
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