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Hubei Huarong Holding CoSHSE:600421 22 Gross Margin % is 21.23% as of Mar. 2026, which is 32% above its 10-year median of 16.03. GuruFocus rates SHSE:600421 with a GF Score™ of 22/100 and a GF Value™ of ¥12.45 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 93 Personal Services companies, Hubei Huarong Holding Co ranks worse than 94.62% on this metric.
SHSE:600421's Gross Margin % is ranked worse than 94.62% of 93
companies
in the Personal Services industry
Industry Median: 41.82
vs SHSE:600421: 15.36
Hubei Huarong Holding Co had a gross margin of 21.23% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Hubei Huarong Holding Co was -2.40% per year.
Hubei Huarong Holding Co (SHSE:600421) 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
Hubei Huarong Holding Co had a gross margin of 21.23% 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.
Hubei Huarong Holding Co Gross Margin % Related Terms
Hubei Huarong Holding 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.
SHSE:600421 vs ROL, SCI, FTDR: Gross Margin % Comparison
For the Personal Services subindustry, Hubei Huarong Holding 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.
Hubei Huarong Holding Co Gross Margin % vs Personal Services Industry
For the Personal Services industry and Consumer Cyclical sector, Hubei Huarong Holding Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hubei Huarong Holding 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.
Hubei Huarong Holding Co (SHSE:600421) has a Gross Margin % of 21.23% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Hubei Huarong Holding Co and its competitors. This is 32% above median its historical median of 16.03. Over the past decade, Hubei Huarong Holding Co's Gross Margin % has ranged from 4.37 to 68.30. According to the industry distribution chart, Hubei Huarong Holding Co ranks #88 out of 93 companies in the Personal Services industry, placing it in the top 94.6%.
Is Hubei Huarong Holding Co's Gross Margin % too high?
Hubei Huarong Holding Co's current Gross Margin % of 21.23% is 32% above median its 10-year median of 16.03. Over the past 10 years, this metric has ranged from a low of 4.37 to a high of 68.30. The Personal Services industry median Gross Margin % is 41.82. Hubei Huarong Holding Co's value of 21.23% is 49.2% below this industry median. Based on the distribution chart, Hubei Huarong Holding Co ranks #88 out of 93 companies in the Personal Services industry, which is in the bottom quartile relative to peers. Overall, Hubei Huarong Holding Co has a GF Score™ of 22/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Hubei Huarong Holding Co's Gross Margin % compare to ROL and SCI?
According to the Personal Services industry distribution chart, Hubei Huarong Holding Co ranks #88 out of 93 companies for Gross Margin %. This places Hubei Huarong Holding Co in the lower half of its industry. The industry median Gross Margin % is 41.82. Hubei Huarong Holding Co's value of 21.23% is 49.2% below this benchmark. Historically, Hubei Huarong Holding Co's own Gross Margin % has ranged from 4.37 to 68.30 over the past decade. While the company's 10-year median is 16.03 vs. the industry median of 41.82, Hubei Huarong Holding 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 Personal Services company?
The median Gross Margin % among Personal Services companies is 41.82, based on 93 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. Hubei Huarong Holding Co's current Gross Margin % of 21.23% is 49.2% 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 Hubei Huarong Holding Co and its competitors. For the Personal Services industry, the median Gross Margin % is 41.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hubei Huarong Holding Co's current Gross Margin % is 21.23%, which is 32% above median its own 10-year median of 16.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hubei Huarong Holding Co stock overvalued right now?
Based on GuruFocus' analysis, Hubei Huarong Holding Co (SHSE:600421) is currently considered Possible Value Trap. The stock's GF Value™ is ¥12.45, compared to a current price of ¥0.24 — trading 98.1% below its estimated fair value. The current Gross Margin % is 21.23%, which is 32% above median its 10-year median of 16.03 and 49.2% below the Personal Services industry median of 41.82. Hubei Huarong Holding Co's overall GF Score™ is 22/100 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 Hubei Huarong Holding Co (SHSE:600421), the current Gross Margin % is 21.23% 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 Hubei Huarong Holding Co (SHSE:600421) Overvalued in 2026?
Based on GuruFocus' analysis, Hubei Huarong Holding Co stock appears to be undervalued.
The current stock price of ¥0.24 is trading 98.1% below its estimated GF Value™ of ¥12.45.
GuruFocus considers Hubei Huarong Holding Co to be Possible Value Trap.
Key valuation signals for SHSE:600421:
Gross Margin %: 21.23% (32% above median its 10-year median of 16.03)
GF Value™: ¥12.45 vs. price of ¥0.24 (98.1% below fair value)
Industry Position: 49.2% below the Personal Services median (#88 of 93)
No single metric tells the full story. See the SHSE:600421 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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