Xiamen Faratronic CoSHSE:600563 -4.41%96 Gross Margin % is 31.65% as of Mar. 2026, which is 25% below its 10-year median of 42.21. GuruFocus rates SHSE:600563 with a GF Score™ of 96/100 and a GF Value™ of ¥133.83 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 2,453 Hardware companies, Xiamen Faratronic Co ranks better than 64.45% on this metric.
Xiamen Faratronic Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -6.3%.
The historical rank and industry rank for Xiamen Faratronic Co's Gross Margin % or its related term are showing as below:
SHSE:600563'
s Gross Margin % Range Over the Past 10 Years
Min: 32.12 Med: 42.21 Max: 44.08
Current: 32.19
During the past 13 years, the highestGross Margin % of Xiamen Faratronic Co was 44.08%. The lowest was 32.12%. And the median was 42.21%.
SHSE:600563's Gross Margin % is ranked better than 64.45% of 2453
companies
in the Hardware industry
Industry Median: 24.52
vs SHSE:600563: 32.19
Xiamen Faratronic Co had a gross margin of 31.65% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Xiamen Faratronic Co was -6.30% per year.
Xiamen Faratronic Co (SHSE:600563) 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
Xiamen Faratronic Co had a gross margin of 31.65% 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.
Xiamen Faratronic Co Gross Margin % Related Terms
Xiamen Faratronic Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Xiamen Faratronic Co's Gross Margin % can be seen below:
* 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:600563 vs APH, GLW: Gross Margin % Comparison
For the Electronic Components subindustry, Xiamen Faratronic 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.
Xiamen Faratronic Co Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Xiamen Faratronic Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Xiamen Faratronic 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.
Xiamen Faratronic Co (SHSE:600563) has a Gross Margin % of 31.65% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Xiamen Faratronic Co and its competitors. This is 25% below median its historical median of 42.21. Over the past decade, Xiamen Faratronic Co's Gross Margin % has ranged from 32.12 to 44.08. According to the industry distribution chart, Xiamen Faratronic Co ranks #872 out of 2453 companies in the Hardware industry, placing it in the top 35.5%.
Is Xiamen Faratronic Co's Gross Margin % too high?
Xiamen Faratronic Co's current Gross Margin % of 31.65% is 25% below median its 10-year median of 42.21. Over the past 10 years, this metric has ranged from a low of 32.12 to a high of 44.08. The Hardware industry median Gross Margin % is 24.52. Xiamen Faratronic Co's value of 31.65% is 29.1% above this industry median. Based on the distribution chart, Xiamen Faratronic Co ranks #872 out of 2453 companies in the Hardware industry, which is above the industry midpoint. Overall, Xiamen Faratronic Co has a GF Score™ of 96/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Xiamen Faratronic Co's Gross Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Xiamen Faratronic Co ranks #872 out of 2453 companies for Gross Margin %. This puts Xiamen Faratronic Co in the upper half of its industry. The industry median Gross Margin % is 24.52. Xiamen Faratronic Co's value of 31.65% is 29.1% above this benchmark. Historically, Xiamen Faratronic Co's own Gross Margin % has ranged from 32.12 to 44.08 over the past decade. While the company's 10-year median is 42.21 vs. the industry median of 24.52, Xiamen Faratronic Co has consistently been above 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 24.52, based on 2,453 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. Xiamen Faratronic Co's current Gross Margin % of 31.65% is 29.1% above 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 Xiamen Faratronic Co and its competitors. For the Hardware industry, the median Gross Margin % is 24.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Xiamen Faratronic Co's current Gross Margin % is 31.65%, which is 25% below median its own 10-year median of 42.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Xiamen Faratronic Co stock overvalued right now?
Based on GuruFocus' analysis, Xiamen Faratronic Co (SHSE:600563) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥133.83, compared to a current price of ¥157.06 — trading 17.4% above its estimated fair value. The current Gross Margin % is 31.65%, which is 25% below median its 10-year median of 42.21 and 29.1% above the Hardware industry median of 24.52. Xiamen Faratronic Co's overall GF Score™ is 96/100 with 8 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 Xiamen Faratronic Co (SHSE:600563), the current Gross Margin % is 31.65% 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 Xiamen Faratronic Co (SHSE:600563) Overvalued in 2026?
Based on GuruFocus' analysis, Xiamen Faratronic Co stock appears to be overvalued.
The current stock price of ¥157.06 is trading 17.4% above its estimated GF Value™ of ¥133.83.
GuruFocus considers Xiamen Faratronic Co to be Modestly Overvalued.
Key valuation signals for SHSE:600563:
Gross Margin %: 31.65% (25% below median its 10-year median of 42.21)
GF Value™: ¥133.83 vs. price of ¥157.06 (17.4% above fair value)
Industry Position: 29.1% above the Hardware median (#872 of 2453)
No single metric tells the full story. See the SHSE:600563 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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