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Shandong Lubei Chemical CoSHSE:600727 67 Gross Margin % is 11.55% as of Mar. 2026, which is 43% below its 10-year median of 20.20. GuruFocus rates SHSE:600727 with a GF Score™ of 67/100 and a GF Value™ of ¥6.55 (Fairly Valued). The stock has 8 warning signs investors should review. Among 1,559 Chemicals companies, Shandong Lubei Chemical Co ranks worse than 85.05% on this metric.
Shandong Lubei Chemical Co (SHSE:600727) 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
Shandong Lubei Chemical Co had a gross margin of 11.55% 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.
Shandong Lubei Chemical Co Gross Margin % Related Terms
Shandong Lubei Chemical 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 Chemicals subindustry, Shandong Lubei Chemical 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.
Shandong Lubei Chemical Co Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Shandong Lubei Chemical Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Shandong Lubei Chemical 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.
Shandong Lubei Chemical Co (SHSE:600727) has a Gross Margin % of 11.55% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Shandong Lubei Chemical Co and its competitors. This is 43% below median its historical median of 20.20. Over the past decade, Shandong Lubei Chemical Co's Gross Margin % has ranged from 7.96 to 28.40. According to the industry distribution chart, Shandong Lubei Chemical Co ranks #1326 out of 1559 companies in the Chemicals industry, placing it in the top 85.1%.
Is Shandong Lubei Chemical Co's Gross Margin % too high?
Shandong Lubei Chemical Co's current Gross Margin % of 11.55% is 43% below median its 10-year median of 20.20. Over the past 10 years, this metric has ranged from a low of 7.96 to a high of 28.40. The Chemicals industry median Gross Margin % is 23.52. Shandong Lubei Chemical Co's value of 11.55% is 50.9% below this industry median. Based on the distribution chart, Shandong Lubei Chemical Co ranks #1326 out of 1559 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Shandong Lubei Chemical Co has a GF Score™ of 67/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Shandong Lubei Chemical Co's Gross Margin % compare to DOW?
According to the Chemicals industry distribution chart, Shandong Lubei Chemical Co ranks #1326 out of 1559 companies for Gross Margin %. This places Shandong Lubei Chemical Co in the lower half of its industry. The industry median Gross Margin % is 23.52. Shandong Lubei Chemical Co's value of 11.55% is 50.9% below this benchmark. Historically, Shandong Lubei Chemical Co's own Gross Margin % has ranged from 7.96 to 28.40 over the past decade. While the company's 10-year median is 20.20 vs. the industry median of 23.52, Shandong Lubei Chemical 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 Chemicals company?
The median Gross Margin % among Chemicals companies is 23.52, based on 1,559 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. Shandong Lubei Chemical Co's current Gross Margin % of 11.55% is 50.9% 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 Shandong Lubei Chemical Co and its competitors. For the Chemicals industry, the median Gross Margin % is 23.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shandong Lubei Chemical Co's current Gross Margin % is 11.55%, which is 43% below median its own 10-year median of 20.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shandong Lubei Chemical Co stock overvalued right now?
Based on GuruFocus' analysis, Shandong Lubei Chemical Co (SHSE:600727) is currently considered Fairly Valued. The stock's GF Value™ is ¥6.55, compared to a current price of ¥6.86 — trading 4.7% above its estimated fair value. The current Gross Margin % is 11.55%, which is 43% below median its 10-year median of 20.20 and 50.9% below the Chemicals industry median of 23.52. Shandong Lubei Chemical Co's overall GF Score™ is 67/100 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 Shandong Lubei Chemical Co (SHSE:600727), the current Gross Margin % is 11.55% 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 Shandong Lubei Chemical Co (SHSE:600727) Overvalued in 2026?
Based on GuruFocus' analysis, Shandong Lubei Chemical Co stock appears to be overvalued.
The current stock price of ¥6.86 is trading 4.7% above its estimated GF Value™ of ¥6.55.
GuruFocus considers Shandong Lubei Chemical Co to be Fairly Valued.
Key valuation signals for SHSE:600727:
Gross Margin %: 11.55% (43% below median its 10-year median of 20.20)
GF Value™: ¥6.55 vs. price of ¥6.86 (4.7% above fair value)
Industry Position: 50.9% below the Chemicals median (#1326 of 1559)
No single metric tells the full story. See the SHSE:600727 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shandong Lubei Chemical Co Ltd is engaged in the production of agriculture inputs. The company produces ammonium phosphate, sulfuric acid, cement, compound fertilizer, and bromine.
67GF Score
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