Henan Zhongfu Industrial CoSHSE:600595 -2.69%77 Gross Margin % is 20.48% as of Mar. 2026, which is 42% above its 10-year median of 14.43. GuruFocus rates SHSE:600595 with a GF Score™ of 77/100 and a GF Value™ of ¥4.88 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 731 Metals & Mining companies, Henan Zhongfu Industrial Co ranks worse than 65.8% on this metric.
Henan Zhongfu Industrial Co (SHSE:600595) 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 Zhongfu Industrial Co had a gross margin of 20.48% 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.
Henan Zhongfu Industrial Co Gross Margin % Related Terms
Henan Zhongfu Industrial 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.
For the Aluminum subindustry, Henan Zhongfu Industrial 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 Zhongfu Industrial Co Gross Margin % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Henan Zhongfu Industrial Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Henan Zhongfu Industrial 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 Zhongfu Industrial Co (SHSE:600595) has a Gross Margin % of 20.48% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Henan Zhongfu Industrial Co and its competitors. This is 42% above median its historical median of 14.43. Over the past decade, Henan Zhongfu Industrial Co's Gross Margin % has ranged from 1.50 to 21.36. According to the industry distribution chart, Henan Zhongfu Industrial Co ranks #481 out of 731 companies in the Metals & Mining industry, placing it in the top 65.8%.
Is Henan Zhongfu Industrial Co's Gross Margin % too high?
Henan Zhongfu Industrial Co's current Gross Margin % of 20.48% is 42% above median its 10-year median of 14.43. Over the past 10 years, this metric has ranged from a low of 1.50 to a high of 21.36. The Metals & Mining industry median Gross Margin % is 26.20. Henan Zhongfu Industrial Co's value of 20.48% is 21.8% below this industry median. Based on the distribution chart, Henan Zhongfu Industrial Co ranks #481 out of 731 companies in the Metals & Mining industry, which is below the industry midpoint. Overall, Henan Zhongfu Industrial Co has a GF Score™ of 77/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Henan Zhongfu Industrial Co's Gross Margin % compare to AA?
According to the Metals & Mining industry distribution chart, Henan Zhongfu Industrial Co ranks #481 out of 731 companies for Gross Margin %. This places Henan Zhongfu Industrial Co in the lower half of its industry. The industry median Gross Margin % is 26.20. Henan Zhongfu Industrial Co's value of 20.48% is 21.8% below this benchmark. Historically, Henan Zhongfu Industrial Co's own Gross Margin % has ranged from 1.50 to 21.36 over the past decade. While the company's 10-year median is 14.43 vs. the industry median of 26.20, Henan Zhongfu Industrial 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 731 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 Zhongfu Industrial Co's current Gross Margin % of 20.48% is 21.8% 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 Zhongfu Industrial 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 Zhongfu Industrial Co's current Gross Margin % is 20.48%, which is 42% above median its own 10-year median of 14.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Henan Zhongfu Industrial Co stock overvalued right now?
Based on GuruFocus' analysis, Henan Zhongfu Industrial Co (SHSE:600595) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥4.88, compared to a current price of ¥5.78 — trading 18.4% above its estimated fair value. The current Gross Margin % is 20.48%, which is 42% above median its 10-year median of 14.43 and 21.8% below the Metals & Mining industry median of 26.20. Henan Zhongfu Industrial Co's overall GF Score™ is 77/100 with 6 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 Henan Zhongfu Industrial Co (SHSE:600595), the current Gross Margin % is 20.48% 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 Zhongfu Industrial Co (SHSE:600595) Overvalued in 2026?
Based on GuruFocus' analysis, Henan Zhongfu Industrial Co stock appears to be overvalued.
The current stock price of ¥5.78 is trading 18.4% above its estimated GF Value™ of ¥4.88.
GuruFocus considers Henan Zhongfu Industrial Co to be Modestly Overvalued.
Key valuation signals for SHSE:600595:
Gross Margin %: 20.48% (42% above median its 10-year median of 14.43)
GF Value™: ¥4.88 vs. price of ¥5.78 (18.4% above fair value)
Industry Position: 21.8% below the Metals & Mining median (#481 of 731)
No single metric tells the full story. See the SHSE:600595 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Henan Zhongfu Industrial Co Ltd is engaged in the production and distribution of electrolytic aluminum and aluminum sectional materials in China. Its product includes Plate and Coil; Billet; and Wire rod.
77GF Score
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