Beihai Gofar Chuanshan Biological Co (SHSE:600538) 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
Beihai Gofar Chuanshan Biological Co had a gross margin of 23.32% 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.
Beihai Gofar Chuanshan Biological Co Gross Margin % Related Terms
Beihai Gofar Chuanshan Biological 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.
Beihai Gofar Chuanshan Biological Co Gross Margin % Chart
SHSE:600538 vs CTVA, CF, MOS: Gross Margin % Comparison
For the Agricultural Inputs subindustry, Beihai Gofar Chuanshan Biological 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.
Beihai Gofar Chuanshan Biological Co Gross Margin % vs Agriculture Industry
For the Agriculture industry and Basic Materials sector, Beihai Gofar Chuanshan Biological Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Beihai Gofar Chuanshan Biological 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.
Beihai Gofar Chuanshan Biological Co (SHSE:600538) has a Gross Margin % of 23.32% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Beihai Gofar Chuanshan Biological Co and its competitors. This is near median its historical median of 23.66. Over the past decade, Beihai Gofar Chuanshan Biological Co's Gross Margin % has ranged from 10.81 to 27.89. According to the industry distribution chart, Beihai Gofar Chuanshan Biological Co ranks #134 out of 245 companies in the Agriculture industry, placing it in the top 54.7%.
Is Beihai Gofar Chuanshan Biological Co's Gross Margin % too high?
Beihai Gofar Chuanshan Biological Co's current Gross Margin % of 23.32% is near median its 10-year median of 23.66. Over the past 10 years, this metric has ranged from a low of 10.81 to a high of 27.89. The Agriculture industry median Gross Margin % is 25.27. Beihai Gofar Chuanshan Biological Co's value of 23.32% is 7.7% below this industry median. Based on the distribution chart, Beihai Gofar Chuanshan Biological Co ranks #134 out of 245 companies in the Agriculture industry, which is below the industry midpoint. Overall, Beihai Gofar Chuanshan Biological Co has a GF Score™ of 54/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Beihai Gofar Chuanshan Biological Co's Gross Margin % compare to CTVA and CF?
According to the Agriculture industry distribution chart, Beihai Gofar Chuanshan Biological Co ranks #134 out of 245 companies for Gross Margin %. This places Beihai Gofar Chuanshan Biological Co in the lower half of its industry. The industry median Gross Margin % is 25.27. Beihai Gofar Chuanshan Biological Co's value of 23.32% is 7.7% below this benchmark. Historically, Beihai Gofar Chuanshan Biological Co's own Gross Margin % has ranged from 10.81 to 27.89 over the past decade. While the company's 10-year median is 23.66 vs. the industry median of 25.27, Beihai Gofar Chuanshan Biological 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 an Agriculture company?
The median Gross Margin % among Agriculture companies is 25.27, based on 245 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. Beihai Gofar Chuanshan Biological Co's current Gross Margin % of 23.32% is 7.7% 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 Beihai Gofar Chuanshan Biological Co and its competitors. For the Agriculture industry, the median Gross Margin % is 25.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Beihai Gofar Chuanshan Biological Co's current Gross Margin % is 23.32%, which is near median its own 10-year median of 23.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Beihai Gofar Chuanshan Biological Co stock overvalued right now?
Based on GuruFocus' analysis, Beihai Gofar Chuanshan Biological Co (SHSE:600538) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥4.14, compared to a current price of ¥5.87 — trading 41.8% above its estimated fair value. The current Gross Margin % is 23.32%, which is near median its 10-year median of 23.66 and 7.7% below the Agriculture industry median of 25.27. Beihai Gofar Chuanshan Biological Co's overall GF Score™ is 54/100 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 Beihai Gofar Chuanshan Biological Co (SHSE:600538), the current Gross Margin % is 23.32% 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 Beihai Gofar Chuanshan Biological Co (SHSE:600538) Overvalued in 2026?
Based on GuruFocus' analysis, Beihai Gofar Chuanshan Biological Co stock appears to be overvalued.
The current stock price of ¥5.87 is trading 41.8% above its estimated GF Value™ of ¥4.14.
GuruFocus considers Beihai Gofar Chuanshan Biological Co to be Significantly Overvalued.
Key valuation signals for SHSE:600538:
Gross Margin %: 23.32% (near median its 10-year median of 23.66)
GF Value™: ¥4.14 vs. price of ¥5.87 (41.8% above fair value)
Industry Position: 7.7% below the Agriculture median (#134 of 245)
No single metric tells the full story. See the SHSE:600538 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Beihai Gofar Chuanshan Biological Co Business Description
Beihai Gofar Chuanshan Biological Co Ltd main business include pharmaceutical manufacturing and pharmaceutical distribution industry, judicial IVD (in vitro diagnostic) technology services, molecular medical imaging centers and tumor radiotherapy centers and tumor telemedicine technology services, etc.
54GF Score
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