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SHSE:600307's Gross Margin % is ranked worse than 69.48% of 593
companies
in the Steel industry
Industry Median: 12.6
vs SHSE:600307: 7.98
Gansu Jiu Steel Group Hongxing Iron And Steel Co had a gross margin of 8.92% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Gansu Jiu Steel Group Hongxing Iron And Steel Co (SHSE:600307) 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
Gansu Jiu Steel Group Hongxing Iron And Steel Co had a gross margin of 8.92% 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.
Gansu Jiu Steel Group Hongxing Iron And Steel Co Gross Margin % Related Terms
Gansu Jiu Steel Group Hongxing Iron And Steel 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.
Gansu Jiu Steel Group Hongxing Iron And Steel Co Gross Margin % Chart
Gansu Jiu Steel Group Hongxing Iron And Steel Co Annual Data
* 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.
Gansu Jiu Steel Group Hongxing Iron And Steel Co Gross Margin % vs Steel 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.
Gansu Jiu Steel Group Hongxing Iron And Steel Co (SHSE:600307) has a Gross Margin % of 8.92% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Gansu Jiu Steel Group Hongxing Iron And Steel Co and its competitors. This is 17% below median its historical median of 10.72. Over the past decade, Gansu Jiu Steel Group Hongxing Iron And Steel Co's Gross Margin % has ranged from 3.04 to 17.43. According to the industry distribution chart, Gansu Jiu Steel Group Hongxing Iron And Steel Co ranks #412 out of 593 companies in the Steel industry, placing it in the top 69.5%.
Is Gansu Jiu Steel Group Hongxing Iron And Steel Co's Gross Margin % too high?
Gansu Jiu Steel Group Hongxing Iron And Steel Co's current Gross Margin % of 8.92% is 17% below median its 10-year median of 10.72. Over the past 10 years, this metric has ranged from a low of 3.04 to a high of 17.43. The Steel industry median Gross Margin % is 12.60. Gansu Jiu Steel Group Hongxing Iron And Steel Co's value of 8.92% is 29.2% below this industry median. Based on the distribution chart, Gansu Jiu Steel Group Hongxing Iron And Steel Co ranks #412 out of 593 companies in the Steel industry, which is below the industry midpoint. Overall, Gansu Jiu Steel Group Hongxing Iron And Steel Co has a GF Score™ of 45/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Gansu Jiu Steel Group Hongxing Iron And Steel Co's Gross Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Gansu Jiu Steel Group Hongxing Iron And Steel Co ranks #412 out of 593 companies for Gross Margin %. This places Gansu Jiu Steel Group Hongxing Iron And Steel Co in the lower half of its industry. The industry median Gross Margin % is 12.60. Gansu Jiu Steel Group Hongxing Iron And Steel Co's value of 8.92% is 29.2% below this benchmark. Historically, Gansu Jiu Steel Group Hongxing Iron And Steel Co's own Gross Margin % has ranged from 3.04 to 17.43 over the past decade. While the company's 10-year median is 10.72 vs. the industry median of 12.60, Gansu Jiu Steel Group Hongxing Iron And Steel 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 Steel company?
The median Gross Margin % among Steel companies is 12.60, based on 593 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. Gansu Jiu Steel Group Hongxing Iron And Steel Co's current Gross Margin % of 8.92% is 29.2% 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 Gansu Jiu Steel Group Hongxing Iron And Steel Co and its competitors. For the Steel industry, the median Gross Margin % is 12.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gansu Jiu Steel Group Hongxing Iron And Steel Co's current Gross Margin % is 8.92%, which is 17% below median its own 10-year median of 10.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gansu Jiu Steel Group Hongxing Iron And Steel Co stock overvalued right now?
Based on GuruFocus' analysis, Gansu Jiu Steel Group Hongxing Iron And Steel Co (SHSE:600307) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥1.23, compared to a current price of ¥1.44 — trading 17.1% above its estimated fair value. The current Gross Margin % is 8.92%, which is 17% below median its 10-year median of 10.72 and 29.2% below the Steel industry median of 12.60. Gansu Jiu Steel Group Hongxing Iron And Steel Co's overall GF Score™ is 45/100 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 Gansu Jiu Steel Group Hongxing Iron And Steel Co (SHSE:600307), the current Gross Margin % is 8.92% 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 Gansu Jiu Steel Group Hongxing Iron And Steel Co (SHSE:600307) Overvalued in 2026?
Based on GuruFocus' analysis, Gansu Jiu Steel Group Hongxing Iron And Steel Co stock appears to be overvalued.
The current stock price of ¥1.44 is trading 17.1% above its estimated GF Value™ of ¥1.23.
GuruFocus considers Gansu Jiu Steel Group Hongxing Iron And Steel Co to be Modestly Overvalued.
Key valuation signals for SHSE:600307:
Gross Margin %: 8.92% (17% below median its 10-year median of 10.72)
GF Value™: ¥1.23 vs. price of ¥1.44 (17.1% above fair value)
Industry Position: 29.2% below the Steel median (#412 of 593)
No single metric tells the full story. See the SHSE:600307 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gansu Jiu Steel Group Hongxing Iron And Steel Co Business Description
Gansu Jiu Steel Group Hongxing Iron And Steel Co Ltd is a China-based company engaged in the business of production and sale of carbon steel and stainless steel production systems. The company's carbon steel products cover four major series of wires, rods, plates, and belts whereas the stainless steel products include ferrite, austenite, martensite, and duplex stainless steel. It sells the products in China and also exports it to other international countries.
45GF Score
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