Shanghai Vital Deeptech Co (SHSE:600641) 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
Shanghai Vital Deeptech Co had a gross margin of 18.50% 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.
Shanghai Vital Deeptech Co Gross Margin % Related Terms
Shanghai Vital Deeptech 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.
SHSE:600641 vs APH, GLW: Gross Margin % Comparison
For the Electronic Components subindustry, Shanghai Vital Deeptech 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.
Shanghai Vital Deeptech Co Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Shanghai Vital Deeptech Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Shanghai Vital Deeptech 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.
Shanghai Vital Deeptech Co (SHSE:600641) has a Gross Margin % of 18.50% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Shanghai Vital Deeptech Co and its competitors. This is 62% below median its historical median of 49.29. Over the past decade, Shanghai Vital Deeptech Co's Gross Margin % has ranged from 17.97 to 63.04. According to the industry distribution chart, Shanghai Vital Deeptech Co ranks #1608 out of 2454 companies in the Hardware industry, placing it in the top 65.5%.
Is Shanghai Vital Deeptech Co's Gross Margin % too high?
Shanghai Vital Deeptech Co's current Gross Margin % of 18.50% is 62% below median its 10-year median of 49.29. Over the past 10 years, this metric has ranged from a low of 17.97 to a high of 63.04. The Hardware industry median Gross Margin % is 24.53. Shanghai Vital Deeptech Co's value of 18.50% is 24.6% below this industry median. Based on the distribution chart, Shanghai Vital Deeptech Co ranks #1608 out of 2454 companies in the Hardware industry, which is below the industry midpoint. Overall, Shanghai Vital Deeptech Co has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shanghai Vital Deeptech Co's Gross Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Shanghai Vital Deeptech Co ranks #1608 out of 2454 companies for Gross Margin %. This places Shanghai Vital Deeptech Co in the lower half of its industry. The industry median Gross Margin % is 24.53. Shanghai Vital Deeptech Co's value of 18.50% is 24.6% below this benchmark. Historically, Shanghai Vital Deeptech Co's own Gross Margin % has ranged from 17.97 to 63.04 over the past decade. While the company's 10-year median is 49.29 vs. the industry median of 24.53, Shanghai Vital Deeptech 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 24.53, based on 2,454 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. Shanghai Vital Deeptech Co's current Gross Margin % of 18.50% is 24.6% 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 Shanghai Vital Deeptech Co and its competitors. For the Hardware industry, the median Gross Margin % is 24.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shanghai Vital Deeptech Co's current Gross Margin % is 18.50%, which is 62% below median its own 10-year median of 49.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanghai Vital Deeptech Co stock overvalued right now?
Based on GuruFocus' analysis, Shanghai Vital Deeptech Co (SHSE:600641) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥30.24, compared to a current price of ¥43.85 — trading 45% above its estimated fair value. The current Gross Margin % is 18.50%, which is 62% below median its 10-year median of 49.29 and 24.6% below the Hardware industry median of 24.53. Shanghai Vital Deeptech Co's overall GF Score™ is 77/100 with 11 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 Shanghai Vital Deeptech Co (SHSE:600641), the current Gross Margin % is 18.50% 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 Shanghai Vital Deeptech Co (SHSE:600641) Overvalued in 2026?
Based on GuruFocus' analysis, Shanghai Vital Deeptech Co stock appears to be overvalued.
The current stock price of ¥43.85 is trading 45% above its estimated GF Value™ of ¥30.24.
GuruFocus considers Shanghai Vital Deeptech Co to be Significantly Overvalued.
Key valuation signals for SHSE:600641:
Gross Margin %: 18.50% (62% below median its 10-year median of 49.29)
GF Value™: ¥30.24 vs. price of ¥43.85 (45% above fair value)
Industry Position: 24.6% below the Hardware median (#1608 of 2454)
No single metric tells the full story. See the SHSE:600641 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shanghai Vital Deeptech Co Ltd focuses on core equipment and real estate in sectors such as integrated circuits and photovoltaics. Its operations include the sales of integrated circuit chips, electronic equipment, mechanical components, electronic products, optoelectronic devices, hardware, metal materials, and special ceramic products. It also provides sales of chemical products. The company engages in research, development, and promotion of new material technologies, including electronic special materials, new metal functional materials, and materials for electronic products. Additionally, it offers retail and wholesale services for electronic components, electromechanical equipment, and related products.
77GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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