NARI Technology CoSHSE:600406 +1.18%97 Gross Margin % is 25.10% as of Mar. 2026, which is 6% below its 10-year median of 26.84. GuruFocus rates SHSE:600406 with a GF Score™ of 97/100 and a GF Value™ of ¥29.97 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 2,991 Industrial Products companies, NARI Technology Co ranks worse than 52.22% on this metric.
The historical rank and industry rank for NARI Technology Co's Gross Margin % or its related term are showing as below:
SHSE:600406'
s Gross Margin % Range Over the Past 10 Years
Min: 24.55 Med: 26.84 Max: 30
Current: 25.95
During the past 13 years, the highestGross Margin % of NARI Technology Co was 30.00%. The lowest was 24.55%. And the median was 26.84%.
SHSE:600406's Gross Margin % is ranked worse than 52.22% of 2991
companies
in the Industrial Products industry
Industry Median: 26.81
vs SHSE:600406: 25.95
NARI Technology Co had a gross margin of 25.10% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for NARI Technology Co was -0.60% per year.
NARI Technology Co (SHSE:600406) 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
NARI Technology Co had a gross margin of 25.10% 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.
NARI Technology Co Gross Margin % Related Terms
NARI Technology Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for NARI Technology 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:600406 vs GEV, ETN, PH: Gross Margin % Comparison
For the Specialty Industrial Machinery subindustry, NARI Technology 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.
NARI Technology Co Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, NARI Technology Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where NARI Technology 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.
NARI Technology Co (SHSE:600406) has a Gross Margin % of 25.10% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on NARI Technology Co and its competitors. This is near median its historical median of 26.84. Over the past decade, NARI Technology Co's Gross Margin % has ranged from 24.55 to 30.00. According to the industry distribution chart, NARI Technology Co ranks #1562 out of 2991 companies in the Industrial Products industry, placing it in the top 52.2%.
Is NARI Technology Co's Gross Margin % too high?
NARI Technology Co's current Gross Margin % of 25.10% is near median its 10-year median of 26.84. Over the past 10 years, this metric has ranged from a low of 24.55 to a high of 30.00. The Industrial Products industry median Gross Margin % is 26.81. NARI Technology Co's value of 25.10% is 6.4% below this industry median. Based on the distribution chart, NARI Technology Co ranks #1562 out of 2991 companies in the Industrial Products industry, which is below the industry midpoint. Overall, NARI Technology Co has a GF Score™ of 97/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does NARI Technology Co's Gross Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, NARI Technology Co ranks #1562 out of 2991 companies for Gross Margin %. This places NARI Technology Co in the lower half of its industry. The industry median Gross Margin % is 26.81. NARI Technology Co's value of 25.10% is 6.4% below this benchmark. Historically, NARI Technology Co's own Gross Margin % has ranged from 24.55 to 30.00 over the past decade. While the company's 10-year median is 26.84 vs. the industry median of 26.81, NARI Technology 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 Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.81, based on 2,991 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. NARI Technology Co's current Gross Margin % of 25.10% is 6.4% 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 NARI Technology Co and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NARI Technology Co's current Gross Margin % is 25.10%, which is near median its own 10-year median of 26.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NARI Technology Co stock overvalued right now?
Based on GuruFocus' analysis, NARI Technology Co (SHSE:600406) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥29.97, compared to a current price of ¥23.16 — trading 22.7% below its estimated fair value. The current Gross Margin % is 25.10%, which is near median its 10-year median of 26.84 and 6.4% below the Industrial Products industry median of 26.81. NARI Technology Co's overall GF Score™ is 97/100 with 1 warning sign 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 NARI Technology Co (SHSE:600406), the current Gross Margin % is 25.10% 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 NARI Technology Co (SHSE:600406) Overvalued in 2026?
Based on GuruFocus' analysis, NARI Technology Co stock appears to be undervalued.
The current stock price of ¥23.16 is trading 22.7% below its estimated GF Value™ of ¥29.97.
GuruFocus considers NARI Technology Co to be Modestly Undervalued.
Key valuation signals for SHSE:600406:
Gross Margin %: 25.10% (near median its 10-year median of 26.84)
GF Value™: ¥29.97 vs. price of ¥23.16 (22.7% below fair value)
Industry Position: 6.4% below the Industrial Products median (#1562 of 2991)
No single metric tells the full story. See the SHSE:600406 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NARI Technology Co Ltd is engaged in providing power & automation technologies in China. It operates in areas of power system automation, smart grid, renewable energy, railway automation, industrial control, & energy conservation & environment protection.
97GF Score
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