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Fangda Special Steel Technology Co (SHSE:600507) 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
Fangda Special Steel Technology Co had a gross margin of 8.42% 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.
Fangda Special Steel Technology Co Gross Margin % Related Terms
Fangda Special Steel Technology 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.
Fangda Special Steel Technology Co Gross Margin % Chart
SHSE:600507 vs NUE, STLD, RS: Gross Margin % Comparison
For the Steel subindustry, Fangda Special Steel 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.
Fangda Special Steel Technology Co Gross Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Fangda Special Steel Technology Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Fangda Special Steel 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.
Fangda Special Steel Technology Co (SHSE:600507) has a Gross Margin % of 8.42% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Fangda Special Steel Technology Co and its competitors. This is 57% below median its historical median of 19.81. Over the past decade, Fangda Special Steel Technology Co's Gross Margin % has ranged from 4.80 to 32.87. According to the industry distribution chart, Fangda Special Steel Technology Co ranks #370 out of 594 companies in the Steel industry, placing it in the top 62.3%.
Is Fangda Special Steel Technology Co's Gross Margin % too high?
Fangda Special Steel Technology Co's current Gross Margin % of 8.42% is 57% below median its 10-year median of 19.81. Over the past 10 years, this metric has ranged from a low of 4.80 to a high of 32.87. The Steel industry median Gross Margin % is 12.55. Fangda Special Steel Technology Co's value of 8.42% is 32.9% below this industry median. Based on the distribution chart, Fangda Special Steel Technology Co ranks #370 out of 594 companies in the Steel industry, which is below the industry midpoint. Overall, Fangda Special Steel Technology Co has a GF Score™ of 59/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Fangda Special Steel Technology Co's Gross Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Fangda Special Steel Technology Co ranks #370 out of 594 companies for Gross Margin %. This places Fangda Special Steel Technology Co in the lower half of its industry. The industry median Gross Margin % is 12.55. Fangda Special Steel Technology Co's value of 8.42% is 32.9% below this benchmark. Historically, Fangda Special Steel Technology Co's own Gross Margin % has ranged from 4.80 to 32.87 over the past decade. While the company's 10-year median is 19.81 vs. the industry median of 12.55, Fangda Special Steel 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 a Steel company?
The median Gross Margin % among Steel companies is 12.55, based on 594 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. Fangda Special Steel Technology Co's current Gross Margin % of 8.42% is 32.9% 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 Fangda Special Steel Technology Co and its competitors. For the Steel industry, the median Gross Margin % is 12.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fangda Special Steel Technology Co's current Gross Margin % is 8.42%, which is 57% below median its own 10-year median of 19.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fangda Special Steel Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Fangda Special Steel Technology Co (SHSE:600507) is currently considered Fairly Valued. The stock's GF Value™ is ¥4.17, compared to a current price of ¥4.32 — trading 3.6% above its estimated fair value. The current Gross Margin % is 8.42%, which is 57% below median its 10-year median of 19.81 and 32.9% below the Steel industry median of 12.55. Fangda Special Steel Technology Co's overall GF Score™ is 59/100 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 Fangda Special Steel Technology Co (SHSE:600507), the current Gross Margin % is 8.42% 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 Fangda Special Steel Technology Co (SHSE:600507) Overvalued in 2026?
Based on GuruFocus' analysis, Fangda Special Steel Technology Co stock appears to be overvalued.
The current stock price of ¥4.32 is trading 3.6% above its estimated GF Value™ of ¥4.17.
GuruFocus considers Fangda Special Steel Technology Co to be Fairly Valued.
Key valuation signals for SHSE:600507:
Gross Margin %: 8.42% (57% below median its 10-year median of 19.81)
GF Value™: ¥4.17 vs. price of ¥4.32 (3.6% above fair value)
Industry Position: 32.9% below the Steel median (#370 of 594)
No single metric tells the full story. See the SHSE:600507 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fangda Special Steel Technology Co Business Description
Fangda Special Steel Technology Co Ltd is mainly engaged in the production and distribution of iron and steel products. It is also involved in processing coke crafts, sintering, smelting iron, steel-making, and steel rolling. The company's products include the automotive leaf springs, deformed steel bars, spring flat steels, round springs, shock absorbers, spring special equipment, auto parts, and molds.
59GF Score
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