SHSE:600403's Gross Margin % is ranked worse than 96.77% of 124
companies
in the Other Energy Sources industry
Industry Median: 18.775
vs SHSE:600403: -9.36
Henan Dayou Energy Co had a gross margin of -3.77% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Henan Dayou Energy Co was 0.00% per year.
Henan Dayou Energy Co (SHSE:600403) 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
Henan Dayou Energy Co had a gross margin of -3.77% 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.
Henan Dayou Energy Co Gross Margin % Related Terms
Henan Dayou Energy Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Henan Dayou Energy 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.
Henan Dayou Energy Co Gross Margin % Competitor Comparison
For the Thermal Coal subindustry, Henan Dayou Energy 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.
Henan Dayou Energy Co Gross Margin % vs Other Energy Sources Industry
For the Other Energy Sources industry and Energy sector, Henan Dayou Energy Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Henan Dayou Energy 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.
Henan Dayou Energy Co (SHSE:600403) has a Gross Margin % of -3.77% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Henan Dayou Energy Co and its competitors. According to the industry distribution chart, Henan Dayou Energy Co ranks #120 out of 124 companies in the Other Energy Sources industry, placing it in the top 96.8%.
Is Henan Dayou Energy Co's Gross Margin % too high?
Henan Dayou Energy Co's current Gross Margin % is -3.77%. Based on the distribution chart, Henan Dayou Energy Co ranks #120 out of 124 companies in the Other Energy Sources industry, which is in the bottom quartile relative to peers. Overall, Henan Dayou Energy Co has a GF Score™ of 37/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Henan Dayou Energy Co's Gross Margin % compare to competitors?
According to the Other Energy Sources industry distribution chart, Henan Dayou Energy Co ranks #120 out of 124 companies for Gross Margin %. This places Henan Dayou Energy Co in the lower half of its industry. The industry median Gross Margin % is 18.78. 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 Other Energy Sources company?
The median Gross Margin % among Other Energy Sources companies is 18.78, based on 124 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. 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 Henan Dayou Energy Co and its competitors. For the Other Energy Sources industry, the median Gross Margin % is 18.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Henan Dayou Energy Co's current Gross Margin % is -3.77%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Henan Dayou Energy Co stock overvalued right now?
Based on GuruFocus' analysis, Henan Dayou Energy Co (SHSE:600403) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥2.37, compared to a current price of ¥5.33 — trading 124.9% above its estimated fair value. The current Gross Margin % is -3.77%. Henan Dayou Energy Co's overall GF Score™ is 37/100 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 Henan Dayou Energy Co (SHSE:600403), the current Gross Margin % is -3.77% 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 Henan Dayou Energy Co (SHSE:600403) Overvalued in 2026?
Based on GuruFocus' analysis, Henan Dayou Energy Co stock appears to be overvalued.
The current stock price of ¥5.33 is trading 124.9% above its estimated GF Value™ of ¥2.37.
GuruFocus considers Henan Dayou Energy Co to be Significantly Overvalued.
Key valuation signals for SHSE:600403:
Gross Margin %: -3.77%
GF Value™: ¥2.37 vs. price of ¥5.33 (124.9% above fair value)
No single metric tells the full story. See the SHSE:600403 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Henan Dayou Energy Co Ltd produces high-quality kennel coal, coking coal, meagre coal, clean coal, which are widely used in various industries, such as power generation, gasification, industrial boilers, coking, building materials in China.
37GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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