Henan Yuguang Gold & Lead CoSHSE:600531 -0.22%84 Gross Margin % is 6.03% as of Mar. 2026, which is 24% above its 10-year median of 4.85. GuruFocus rates SHSE:600531 with a GF Score™ of 84/100 and a GF Value™ of ¥11.50 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 727 Metals & Mining companies, Henan Yuguang Gold & Lead Co ranks worse than 84.32% on this metric.
Henan Yuguang Gold & Lead Co (SHSE:600531) 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
Henan Yuguang Gold & Lead Co had a gross margin of 6.03% 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.
Henan Yuguang Gold & Lead Co Gross Margin % Related Terms
Henan Yuguang Gold & Lead 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.
Henan Yuguang Gold & Lead Co Gross Margin % Competitor Comparison
For the Other Industrial Metals & Mining subindustry, Henan Yuguang Gold & Lead 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.
Henan Yuguang Gold & Lead Co Gross Margin % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Henan Yuguang Gold & Lead Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Henan Yuguang Gold & Lead 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.
Henan Yuguang Gold & Lead Co (SHSE:600531) has a Gross Margin % of 6.03% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Henan Yuguang Gold & Lead Co and its competitors. This is 24% above median its historical median of 4.85. Over the past decade, Henan Yuguang Gold & Lead Co's Gross Margin % has ranged from 2.44 to 6.23. According to the industry distribution chart, Henan Yuguang Gold & Lead Co ranks #613 out of 727 companies in the Metals & Mining industry, placing it in the top 84.3%.
Is Henan Yuguang Gold & Lead Co's Gross Margin % too high?
Henan Yuguang Gold & Lead Co's current Gross Margin % of 6.03% is 24% above median its 10-year median of 4.85. Over the past 10 years, this metric has ranged from a low of 2.44 to a high of 6.23. The Metals & Mining industry median Gross Margin % is 26.20. Henan Yuguang Gold & Lead Co's value of 6.03% is 77% below this industry median. Based on the distribution chart, Henan Yuguang Gold & Lead Co ranks #613 out of 727 companies in the Metals & Mining industry, which is in the bottom quartile relative to peers. Overall, Henan Yuguang Gold & Lead Co has a GF Score™ of 84/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Henan Yuguang Gold & Lead Co's Gross Margin % compare to competitors?
According to the Metals & Mining industry distribution chart, Henan Yuguang Gold & Lead Co ranks #613 out of 727 companies for Gross Margin %. This places Henan Yuguang Gold & Lead Co in the lower half of its industry. The industry median Gross Margin % is 26.20. Henan Yuguang Gold & Lead Co's value of 6.03% is 77% below this benchmark. Historically, Henan Yuguang Gold & Lead Co's own Gross Margin % has ranged from 2.44 to 6.23 over the past decade. While the company's 10-year median is 4.85 vs. the industry median of 26.20, Henan Yuguang Gold & Lead 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 Metals & Mining company?
The median Gross Margin % among Metals & Mining companies is 26.20, based on 727 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. Henan Yuguang Gold & Lead Co's current Gross Margin % of 6.03% is 77% 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 Henan Yuguang Gold & Lead Co and its competitors. For the Metals & Mining industry, the median Gross Margin % is 26.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Henan Yuguang Gold & Lead Co's current Gross Margin % is 6.03%, which is 24% above median its own 10-year median of 4.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Henan Yuguang Gold & Lead Co stock overvalued right now?
Based on GuruFocus' analysis, Henan Yuguang Gold & Lead Co (SHSE:600531) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥11.50, compared to a current price of ¥13.48 — trading 17.2% above its estimated fair value. The current Gross Margin % is 6.03%, which is 24% above median its 10-year median of 4.85 and 77% below the Metals & Mining industry median of 26.20. Henan Yuguang Gold & Lead Co's overall GF Score™ is 84/100 with 1 warning sign 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 Henan Yuguang Gold & Lead Co (SHSE:600531), the current Gross Margin % is 6.03% 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 Henan Yuguang Gold & Lead Co (SHSE:600531) Overvalued in 2026?
Based on GuruFocus' analysis, Henan Yuguang Gold & Lead Co stock appears to be overvalued.
The current stock price of ¥13.48 is trading 17.2% above its estimated GF Value™ of ¥11.50.
GuruFocus considers Henan Yuguang Gold & Lead Co to be Modestly Overvalued.
Key valuation signals for SHSE:600531:
Gross Margin %: 6.03% (24% above median its 10-year median of 4.85)
GF Value™: ¥11.50 vs. price of ¥13.48 (17.2% above fair value)
Industry Position: 77% below the Metals & Mining median (#613 of 727)
No single metric tells the full story. See the SHSE:600531 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Henan Yuguang Gold & Lead Co Ltd is engaged in the Non-ferrous metal smelting and trading; sales of chemical raw materials; precious metal smelting; sales of gold and silver products.
84GF Score
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