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Guizhou Chitianhua CoSHSE:600227 +3.96%46 Gross Margin % is 7.59% as of Mar. 2026, which is 57% below its 10-year median of 17.61. GuruFocus rates SHSE:600227 with a GF Score™ of 46/100 and a GF Value™ of ¥2.21 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 245 Agriculture companies, Guizhou Chitianhua Co ranks worse than 88.98% on this metric.
SHSE:600227's Gross Margin % is ranked worse than 88.98% of 245
companies
in the Agriculture industry
Industry Median: 24.81
vs SHSE:600227: 6.94
Guizhou Chitianhua Co had a gross margin of 7.59% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Guizhou Chitianhua Co was -24.10% per year.
Guizhou Chitianhua Co (SHSE:600227) 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
Guizhou Chitianhua Co had a gross margin of 7.59% 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.
Guizhou Chitianhua Co Gross Margin % Related Terms
Guizhou Chitianhua Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Guizhou Chitianhua 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:600227 vs CTVA, CF, MOS: Gross Margin % Comparison
For the Agricultural Inputs subindustry, Guizhou Chitianhua 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.
Guizhou Chitianhua Co Gross Margin % vs Agriculture Industry
For the Agriculture industry and Basic Materials sector, Guizhou Chitianhua Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Guizhou Chitianhua 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.
Guizhou Chitianhua Co (SHSE:600227) has a Gross Margin % of 7.59% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Guizhou Chitianhua Co and its competitors. This is 57% below median its historical median of 17.61. Over the past decade, Guizhou Chitianhua Co's Gross Margin % has ranged from 5.78 to 34.81. According to the industry distribution chart, Guizhou Chitianhua Co ranks #218 out of 245 companies in the Agriculture industry, placing it in the top 89%.
Is Guizhou Chitianhua Co's Gross Margin % too high?
Guizhou Chitianhua Co's current Gross Margin % of 7.59% is 57% below median its 10-year median of 17.61. Over the past 10 years, this metric has ranged from a low of 5.78 to a high of 34.81. The Agriculture industry median Gross Margin % is 24.81. Guizhou Chitianhua Co's value of 7.59% is 69.4% below this industry median. Based on the distribution chart, Guizhou Chitianhua Co ranks #218 out of 245 companies in the Agriculture industry, which is in the bottom quartile relative to peers. Overall, Guizhou Chitianhua Co has a GF Score™ of 46/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Guizhou Chitianhua Co's Gross Margin % compare to CTVA and CF?
According to the Agriculture industry distribution chart, Guizhou Chitianhua Co ranks #218 out of 245 companies for Gross Margin %. This places Guizhou Chitianhua Co in the lower half of its industry. The industry median Gross Margin % is 24.81. Guizhou Chitianhua Co's value of 7.59% is 69.4% below this benchmark. Historically, Guizhou Chitianhua Co's own Gross Margin % has ranged from 5.78 to 34.81 over the past decade. While the company's 10-year median is 17.61 vs. the industry median of 24.81, Guizhou Chitianhua 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 an Agriculture company?
The median Gross Margin % among Agriculture companies is 24.81, based on 245 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. Guizhou Chitianhua Co's current Gross Margin % of 7.59% is 69.4% 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 Guizhou Chitianhua Co and its competitors. For the Agriculture industry, the median Gross Margin % is 24.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Guizhou Chitianhua Co's current Gross Margin % is 7.59%, which is 57% below median its own 10-year median of 17.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Guizhou Chitianhua Co stock overvalued right now?
Based on GuruFocus' analysis, Guizhou Chitianhua Co (SHSE:600227) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥2.21, compared to a current price of ¥3.15 — trading 42.5% above its estimated fair value. The current Gross Margin % is 7.59%, which is 57% below median its 10-year median of 17.61 and 69.4% below the Agriculture industry median of 24.81. Guizhou Chitianhua Co's overall GF Score™ is 46/100 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 Guizhou Chitianhua Co (SHSE:600227), the current Gross Margin % is 7.59% 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 Guizhou Chitianhua Co (SHSE:600227) Overvalued in 2026?
Based on GuruFocus' analysis, Guizhou Chitianhua Co stock appears to be overvalued.
The current stock price of ¥3.15 is trading 42.5% above its estimated GF Value™ of ¥2.21.
GuruFocus considers Guizhou Chitianhua Co to be Significantly Overvalued.
Key valuation signals for SHSE:600227:
Gross Margin %: 7.59% (57% below median its 10-year median of 17.61)
GF Value™: ¥2.21 vs. price of ¥3.15 (42.5% above fair value)
Industry Position: 69.4% below the Agriculture median (#218 of 245)
No single metric tells the full story. See the SHSE:600227 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Guizhou Chitianhua Co Ltd, formerly Guizhou Salvage Pharmaceutical Co Ltd primarily produces and sells urea in China. It offers nitrogenous fertilizer, phosphate fertilizer, compound fertilizer, synthetic ammonia, sulfur, and other chemical products and raw materials; fine chemical products; industrial hydrogen; and packing bags and plastic sheets.
46GF Score
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