China National MedicinesSHSE:600511 +1.62%86 Gross Margin % is 6.10% as of Mar. 2026, which is 22% below its 10-year median of 7.81. GuruFocus rates SHSE:600511 with a GF Score™ of 86/100 and a GF Value™ of ¥32.74 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 116 Medical Distribution companies, China National Medicines ranks worse than 91.38% on this metric.
SHSE:600511's Gross Margin % is ranked worse than 91.38% of 116
companies
in the Medical Distribution industry
Industry Median: 14.9
vs SHSE:600511: 6.54
China National Medicines had a gross margin of 6.10% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for China National Medicines was -3.30% per year.
China National Medicines (SHSE:600511) 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
China National Medicines had a gross margin of 6.10% 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.
China National Medicines Gross Margin % Related Terms
China National Medicines 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:600511 vs MCK, CAH, COR: Gross Margin % Comparison
For the Medical Distribution subindustry, China National Medicines'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.
China National Medicines Gross Margin % vs Medical Distribution Industry
For the Medical Distribution industry and Healthcare sector, China National Medicines's Gross Margin % distribution charts can be found below:
* The bar in red indicates where China National Medicines'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.
China National Medicines (SHSE:600511) has a Gross Margin % of 6.10% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on China National Medicines and its competitors. This is 22% below median its historical median of 7.81. Over the past decade, China National Medicines' Gross Margin % has ranged from 6.54 to 8.83. According to the industry distribution chart, China National Medicines ranks #106 out of 116 companies in the Medical Distribution industry, placing it in the top 91.4%.
Is China National Medicines' Gross Margin % too high?
China National Medicines' current Gross Margin % of 6.10% is 22% below median its 10-year median of 7.81. Over the past 10 years, this metric has ranged from a low of 6.54 to a high of 8.83. The Medical Distribution industry median Gross Margin % is 14.90. China National Medicines' value of 6.10% is 59.1% below this industry median. Based on the distribution chart, China National Medicines ranks #106 out of 116 companies in the Medical Distribution industry, which is in the bottom quartile relative to peers. Overall, China National Medicines has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China National Medicines' Gross Margin % compare to MCK and CAH?
According to the Medical Distribution industry distribution chart, China National Medicines ranks #106 out of 116 companies for Gross Margin %. This places China National Medicines in the lower half of its industry. The industry median Gross Margin % is 14.90. China National Medicines' value of 6.10% is 59.1% below this benchmark. Historically, China National Medicines' own Gross Margin % has ranged from 6.54 to 8.83 over the past decade. While the company's 10-year median is 7.81 vs. the industry median of 14.90, China National Medicines 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 Medical Distribution company?
The median Gross Margin % among Medical Distribution companies is 14.90, based on 116 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. China National Medicines's current Gross Margin % of 6.10% is 59.1% 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 China National Medicines and its competitors. For the Medical Distribution industry, the median Gross Margin % is 14.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China National Medicines's current Gross Margin % is 6.10%, which is 22% below median its own 10-year median of 7.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China National Medicines stock overvalued right now?
Based on GuruFocus' analysis, China National Medicines (SHSE:600511) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥32.74, compared to a current price of ¥26.94 — trading 17.7% below its estimated fair value. The current Gross Margin % is 6.10%, which is 22% below median its 10-year median of 7.81 and 59.1% below the Medical Distribution industry median of 14.90. China National Medicines' overall GF Score™ is 86/100 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 China National Medicines (SHSE:600511), the current Gross Margin % is 6.10% 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 China National Medicines (SHSE:600511) Overvalued in 2026?
Based on GuruFocus' analysis, China National Medicines stock appears to be undervalued.
The current stock price of ¥26.94 is trading 17.7% below its estimated GF Value™ of ¥32.74.
GuruFocus considers China National Medicines to be Modestly Undervalued.
Key valuation signals for SHSE:600511:
Gross Margin %: 6.10% (22% below median its 10-year median of 7.81)
GF Value™: ¥32.74 vs. price of ¥26.94 (17.7% below fair value)
Industry Position: 59.1% below the Medical Distribution median (#106 of 116)
No single metric tells the full story. See the SHSE:600511 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China National Medicines Corp Ltd focuses on producing special drugs and high-end prescription drugs. Its main goal is to provide customers with professional medical services. The company conducts its operations through two primary segments. The Commercial segment is mainly engaged in the sale of pharmaceuticals. The Others segment focuses on pharmaceutical manufacturing and logistics operations.
86GF Score
Get the complete analysis for SHSE:600511
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
SHSE:600511 has been successfully added to your 
