Fangda Carbon New Material Co (SHSE:600516) 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 Carbon New Material Co had a gross margin of 9.46% 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 Carbon New Material Co Gross Margin % Related Terms
Fangda Carbon New Material 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 Carbon New Material Co Gross Margin % Chart
SHSE:600516 vs APH, GLW: Gross Margin % Comparison
For the Electronic Components subindustry, Fangda Carbon New Material 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 Carbon New Material Co Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Fangda Carbon New Material Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Fangda Carbon New Material 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 Carbon New Material Co (SHSE:600516) has a Gross Margin % of 9.46% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Fangda Carbon New Material Co and its competitors. This is 65% below median its historical median of 27.30. Over the past decade, Fangda Carbon New Material Co's Gross Margin % has ranged from 11.26 to 76.59. According to the industry distribution chart, Fangda Carbon New Material Co ranks #2007 out of 2449 companies in the Hardware industry, placing it in the top 82%.
Is Fangda Carbon New Material Co's Gross Margin % too high?
Fangda Carbon New Material Co's current Gross Margin % of 9.46% is 65% below median its 10-year median of 27.30. Over the past 10 years, this metric has ranged from a low of 11.26 to a high of 76.59. The Hardware industry median Gross Margin % is 24.50. Fangda Carbon New Material Co's value of 9.46% is 61.4% below this industry median. Based on the distribution chart, Fangda Carbon New Material Co ranks #2007 out of 2449 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Fangda Carbon New Material Co has a GF Score™ of 65/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Fangda Carbon New Material Co's Gross Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Fangda Carbon New Material Co ranks #2007 out of 2449 companies for Gross Margin %. This places Fangda Carbon New Material Co in the lower half of its industry. The industry median Gross Margin % is 24.50. Fangda Carbon New Material Co's value of 9.46% is 61.4% below this benchmark. Historically, Fangda Carbon New Material Co's own Gross Margin % has ranged from 11.26 to 76.59 over the past decade. While the company's 10-year median is 27.30 vs. the industry median of 24.50, Fangda Carbon New Material 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 Hardware company?
The median Gross Margin % among Hardware companies is 24.50, based on 2,449 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 Carbon New Material Co's current Gross Margin % of 9.46% is 61.4% 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 Carbon New Material Co and its competitors. For the Hardware industry, the median Gross Margin % is 24.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fangda Carbon New Material Co's current Gross Margin % is 9.46%, which is 65% below median its own 10-year median of 27.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fangda Carbon New Material Co stock overvalued right now?
Based on GuruFocus' analysis, Fangda Carbon New Material Co (SHSE:600516) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥4.68, compared to a current price of ¥5.79 — trading 23.7% above its estimated fair value. The current Gross Margin % is 9.46%, which is 65% below median its 10-year median of 27.30 and 61.4% below the Hardware industry median of 24.50. Fangda Carbon New Material Co's overall GF Score™ is 65/100 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 Carbon New Material Co (SHSE:600516), the current Gross Margin % is 9.46% 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 Carbon New Material Co (SHSE:600516) Overvalued in 2026?
Based on GuruFocus' analysis, Fangda Carbon New Material Co stock appears to be overvalued.
The current stock price of ¥5.79 is trading 23.7% above its estimated GF Value™ of ¥4.68.
GuruFocus considers Fangda Carbon New Material Co to be Modestly Overvalued.
Key valuation signals for SHSE:600516:
Gross Margin %: 9.46% (65% below median its 10-year median of 27.30)
GF Value™: ¥4.68 vs. price of ¥5.79 (23.7% above fair value)
Industry Position: 61.4% below the Hardware median (#2007 of 2449)
No single metric tells the full story. See the SHSE:600516 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fangda Carbon New Material Co Business Description
Fangda Carbon New Material Co Ltd is a China-based company engaged in the production and sales of graphite and carbon products. Its main products include ultra-high power, high power and common power graphite electrodes, microporous carbon bricks, semi-graphite carbon bricks, aluminum carbon bricks, isostatic graphite products, special graphite products, biological carbon products and carbon composite materials, among others.
65GF Score
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