Liuzhou Chemical Industry Co (SHSE:600423) 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
Liuzhou Chemical Industry Co had a gross margin of 12.90% 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.
Liuzhou Chemical Industry Co Gross Margin % Related Terms
Liuzhou Chemical Industry 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:600423 vs CTVA, CF, MOS: Gross Margin % Comparison
For the Agricultural Inputs subindustry, Liuzhou Chemical Industry 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.
Liuzhou Chemical Industry Co Gross Margin % vs Agriculture Industry
For the Agriculture industry and Basic Materials sector, Liuzhou Chemical Industry Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Liuzhou Chemical Industry 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.
Liuzhou Chemical Industry Co (SHSE:600423) has a Gross Margin % of 12.90% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Liuzhou Chemical Industry Co and its competitors. This is 22% below median its historical median of 16.55. According to the industry distribution chart, Liuzhou Chemical Industry Co ranks #212 out of 245 companies in the Agriculture industry, placing it in the top 86.5%.
Is Liuzhou Chemical Industry Co's Gross Margin % too high?
Liuzhou Chemical Industry Co's current Gross Margin % of 12.90% is 22% below median its 10-year median of 16.55. The Agriculture industry median Gross Margin % is 25.27. Liuzhou Chemical Industry Co's value of 12.90% is 49% below this industry median. Based on the distribution chart, Liuzhou Chemical Industry Co ranks #212 out of 245 companies in the Agriculture industry, which is in the bottom quartile relative to peers. Overall, Liuzhou Chemical Industry Co has a GF Score™ of 50/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Liuzhou Chemical Industry Co's Gross Margin % compare to CTVA and CF?
According to the Agriculture industry distribution chart, Liuzhou Chemical Industry Co ranks #212 out of 245 companies for Gross Margin %. This places Liuzhou Chemical Industry Co in the lower half of its industry. The industry median Gross Margin % is 25.27. Liuzhou Chemical Industry Co's value of 12.90% is 49% below this benchmark. While the company's 10-year median is 16.55 vs. the industry median of 25.27, Liuzhou Chemical Industry 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 25.27, 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. Liuzhou Chemical Industry Co's current Gross Margin % of 12.90% is 49% 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 Liuzhou Chemical Industry Co and its competitors. For the Agriculture industry, the median Gross Margin % is 25.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Liuzhou Chemical Industry Co's current Gross Margin % is 12.90%, which is 22% below median its own 10-year median of 16.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Liuzhou Chemical Industry Co stock overvalued right now?
Based on GuruFocus' analysis, Liuzhou Chemical Industry Co (SHSE:600423) is currently considered Fairly Valued. The stock's GF Value™ is ¥2.84, compared to a current price of ¥2.59 — trading 8.8% below its estimated fair value. The current Gross Margin % is 12.90%, which is 22% below median its 10-year median of 16.55 and 49% below the Agriculture industry median of 25.27. Liuzhou Chemical Industry Co's overall GF Score™ is 50/100 with 4 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 Liuzhou Chemical Industry Co (SHSE:600423), the current Gross Margin % is 12.90% 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 Liuzhou Chemical Industry Co (SHSE:600423) Overvalued in 2026?
Based on GuruFocus' analysis, Liuzhou Chemical Industry Co stock appears to be undervalued.
The current stock price of ¥2.59 is trading 8.8% below its estimated GF Value™ of ¥2.84.
GuruFocus considers Liuzhou Chemical Industry Co to be Fairly Valued.
Key valuation signals for SHSE:600423:
Gross Margin %: 12.90% (22% below median its 10-year median of 16.55)
GF Value™: ¥2.84 vs. price of ¥2.59 (8.8% below fair value)
Industry Position: 49% below the Agriculture median (#212 of 245)
No single metric tells the full story. See the SHSE:600423 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Liuzhou Chemical Industry Co Ltd is engaged in producing and selling chemical fertilizers. The product line includes - porous ammonium nitrate, sodium nitrite, soda ash, granular ammonium nitrate, industrial sulfur, sodium nitrate, potassium sulfate, urea, ammonium chloride, hydrogen peroxide, compound fertilizer, nitro fertilizer, food-grade carbon dioxide, liquid ammonia, and others.
50GF Score
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