SHSE:600506's Gross Margin % is ranked worse than 63.09% of 1899
companies
in the Consumer Packaged Goods industry
Industry Median: 26.36
vs SHSE:600506: 20.54
Tongyi Carbon Neutral Energy (Xinjiang) Co had a gross margin of 22.52% for the quarter that ended in Mar. 2026 => Competition eroding margins
Tongyi Carbon Neutral Energy (Xinjiang) Co (SHSE:600506) 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
Tongyi Carbon Neutral Energy (Xinjiang) Co had a gross margin of 22.52% 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.
Tongyi Carbon Neutral Energy (Xinjiang) Co Gross Margin % Related Terms
Tongyi Carbon Neutral Energy (Xinjiang) 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.
Tongyi Carbon Neutral Energy (Xinjiang) Co Gross Margin % Chart
Tongyi Carbon Neutral Energy (Xinjiang) Co Annual Data
SHSE:600506 vs ADM, BG, TSN: Gross Margin % Comparison
For the Farm Products subindustry, Tongyi Carbon Neutral Energy (Xinjiang) 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.
Tongyi Carbon Neutral Energy (Xinjiang) Co Gross Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Tongyi Carbon Neutral Energy (Xinjiang) Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Tongyi Carbon Neutral Energy (Xinjiang) 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.
Tongyi Carbon Neutral Energy (Xinjiang) Co (SHSE:600506) has a Gross Margin % of 22.52% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Tongyi Carbon Neutral Energy (Xinjiang) Co and its competitors. This is 208% above median its historical median of 7.32. According to the industry distribution chart, Tongyi Carbon Neutral Energy (Xinjiang) Co ranks #1198 out of 1899 companies in the Consumer Packaged Goods industry, placing it in the top 63.1%.
Is Tongyi Carbon Neutral Energy (Xinjiang) Co's Gross Margin % too high?
Tongyi Carbon Neutral Energy (Xinjiang) Co's current Gross Margin % of 22.52% is 208% above median its 10-year median of 7.32. The Consumer Packaged Goods industry median Gross Margin % is 26.36. Tongyi Carbon Neutral Energy (Xinjiang) Co's value of 22.52% is 14.6% below this industry median. Based on the distribution chart, Tongyi Carbon Neutral Energy (Xinjiang) Co ranks #1198 out of 1899 companies in the Consumer Packaged Goods industry, which is below the industry midpoint. Overall, Tongyi Carbon Neutral Energy (Xinjiang) Co has a GF Score™ of 64/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Tongyi Carbon Neutral Energy (Xinjiang) Co's Gross Margin % compare to ADM and BG?
According to the Consumer Packaged Goods industry distribution chart, Tongyi Carbon Neutral Energy (Xinjiang) Co ranks #1198 out of 1899 companies for Gross Margin %. This places Tongyi Carbon Neutral Energy (Xinjiang) Co in the lower half of its industry. The industry median Gross Margin % is 26.36. Tongyi Carbon Neutral Energy (Xinjiang) Co's value of 22.52% is 14.6% below this benchmark. While the company's 10-year median is 7.32 vs. the industry median of 26.36, Tongyi Carbon Neutral Energy (Xinjiang) 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 Consumer Packaged Goods company?
The median Gross Margin % among Consumer Packaged Goods companies is 26.36, based on 1,899 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. Tongyi Carbon Neutral Energy (Xinjiang) Co's current Gross Margin % of 22.52% is 14.6% 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 Tongyi Carbon Neutral Energy (Xinjiang) Co and its competitors. For the Consumer Packaged Goods industry, the median Gross Margin % is 26.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tongyi Carbon Neutral Energy (Xinjiang) Co's current Gross Margin % is 22.52%, which is 208% above median its own 10-year median of 7.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tongyi Carbon Neutral Energy (Xinjiang) Co stock overvalued right now?
Based on GuruFocus' analysis, Tongyi Carbon Neutral Energy (Xinjiang) Co (SHSE:600506) is currently considered Fairly Valued. The stock's GF Value™ is ¥14.09, compared to a current price of ¥13.69 — trading 2.8% below its estimated fair value. The current Gross Margin % is 22.52%, which is 208% above median its 10-year median of 7.32 and 14.6% below the Consumer Packaged Goods industry median of 26.36. Tongyi Carbon Neutral Energy (Xinjiang) Co's overall GF Score™ is 64/100 with 3 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 Tongyi Carbon Neutral Energy (Xinjiang) Co (SHSE:600506), the current Gross Margin % is 22.52% 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 Tongyi Carbon Neutral Energy (Xinjiang) Co (SHSE:600506) Overvalued in 2026?
Based on GuruFocus' analysis, Tongyi Carbon Neutral Energy (Xinjiang) Co stock appears to be undervalued.
The current stock price of ¥13.69 is trading 2.8% below its estimated GF Value™ of ¥14.09.
GuruFocus considers Tongyi Carbon Neutral Energy (Xinjiang) Co to be Fairly Valued.
Key valuation signals for SHSE:600506:
Gross Margin %: 22.52% (208% above median its 10-year median of 7.32)
GF Value™: ¥14.09 vs. price of ¥13.69 (2.8% below fair value)
Industry Position: 14.6% below the Consumer Packaged Goods median (#1198 of 1899)
No single metric tells the full story. See the SHSE:600506 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tongyi Carbon Neutral Energy (Xinjiang) Co Business Description
Tongyi Carbon Neutral Energy (Xinjiang) Co Ltd is in the business of researching, developing, producing, and sales of lubricating greases. Depending on their application, the company's products include Traditional lubricating oils and liquid cooling and specialty greases for the new energy industry, namely those for transportation, industrial manufacturing and power, construction machinery, and mining. The company provides liquid cooling and specialty grease products to customers in industries such as power piles, renewable energy, and energy storage.
64GF Score
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