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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Avic Heavy Machinery CoSHSE:600765 +0.23%67 Gross Margin % is 31.70% as of Mar. 2026, which is 20% above its 10-year median of 26.40. GuruFocus rates SHSE:600765 with a GF Score™ of 67/100 and a GF Value™ of ¥17.12 (Modestly Undervalued). The stock has 10 warning signs investors should review. Among 2,998 Industrial Products companies, Avic Heavy Machinery Co ranks better than 51.93% on this metric.
SHSE:600765's Gross Margin % is ranked better than 51.93% of 2998
companies
in the Industrial Products industry
Industry Median: 26.84
vs SHSE:600765: 27.54
Avic Heavy Machinery Co had a gross margin of 31.70% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Avic Heavy Machinery Co was -0.70% per year.
Avic Heavy Machinery Co (SHSE:600765) 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
Avic Heavy Machinery Co had a gross margin of 31.70% 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.
Avic Heavy Machinery Co Gross Margin % Related Terms
Avic Heavy Machinery 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:600765 vs GEV, ETN, PH: Gross Margin % Comparison
For the Specialty Industrial Machinery subindustry, Avic Heavy Machinery 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.
Avic Heavy Machinery Co Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Avic Heavy Machinery Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Avic Heavy Machinery 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.
Avic Heavy Machinery Co (SHSE:600765) has a Gross Margin % of 31.70% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Avic Heavy Machinery Co and its competitors. This is 20% above median its historical median of 26.40. Over the past decade, Avic Heavy Machinery Co's Gross Margin % has ranged from 23.69 to 31.20. According to the industry distribution chart, Avic Heavy Machinery Co ranks #1441 out of 2998 companies in the Industrial Products industry, placing it in the top 48.1%.
Is Avic Heavy Machinery Co's Gross Margin % too high?
Avic Heavy Machinery Co's current Gross Margin % of 31.70% is 20% above median its 10-year median of 26.40. Over the past 10 years, this metric has ranged from a low of 23.69 to a high of 31.20. The Industrial Products industry median Gross Margin % is 26.84. Avic Heavy Machinery Co's value of 31.70% is 18.1% above this industry median. Based on the distribution chart, Avic Heavy Machinery Co ranks #1441 out of 2998 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Avic Heavy Machinery Co has a GF Score™ of 67/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Avic Heavy Machinery Co's Gross Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Avic Heavy Machinery Co ranks #1441 out of 2998 companies for Gross Margin %. This puts Avic Heavy Machinery Co in the upper half of its industry. The industry median Gross Margin % is 26.84. Avic Heavy Machinery Co's value of 31.70% is 18.1% above this benchmark. Historically, Avic Heavy Machinery Co's own Gross Margin % has ranged from 23.69 to 31.20 over the past decade. While the company's 10-year median is 26.40 vs. the industry median of 26.84, Avic Heavy Machinery 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.84, based on 2,998 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. Avic Heavy Machinery Co's current Gross Margin % of 31.70% is 18.1% 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 Avic Heavy Machinery Co and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Avic Heavy Machinery Co's current Gross Margin % is 31.70%, which is 20% above median its own 10-year median of 26.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Avic Heavy Machinery Co stock overvalued right now?
Based on GuruFocus' analysis, Avic Heavy Machinery Co (SHSE:600765) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥17.12, compared to a current price of ¥12.86 — trading 24.9% below its estimated fair value. The current Gross Margin % is 31.70%, which is 20% above median its 10-year median of 26.40 and 18.1% above the Industrial Products industry median of 26.84. Avic Heavy Machinery Co's overall GF Score™ is 67/100 with 10 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 Avic Heavy Machinery Co (SHSE:600765), the current Gross Margin % is 31.70% 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 Avic Heavy Machinery Co (SHSE:600765) Overvalued in 2026?
Based on GuruFocus' analysis, Avic Heavy Machinery Co stock appears to be undervalued.
The current stock price of ¥12.86 is trading 24.9% below its estimated GF Value™ of ¥17.12.
GuruFocus considers Avic Heavy Machinery Co to be Modestly Undervalued.
Key valuation signals for SHSE:600765:
Gross Margin %: 31.70% (20% above median its 10-year median of 26.40)
GF Value™: ¥17.12 vs. price of ¥12.86 (24.9% below fair value)
Industry Position: 18.1% above the Industrial Products median (#1441 of 2998)
No single metric tells the full story. See the SHSE:600765 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Avic Heavy Machinery Co Ltd is a China-based company engaged in the development, production, and sale of both military and civilian-used high-end equipment. It manufactures hydraulic parts, hydraulic systems, forging products, heat exchangers and gas turbines in China. The company operates in the business areas of Forging business, Hydraulic business, and New energy business. In the Forging business, the company mainly produces die forgings, free forgings, isothermal forgings and rings of different materials. In Hydraulic business, the main products are various types of heat exchangers, high-speed rotating machinery (turbine, pumps, fans), oil tanks, cooling devices, high-temperature insulation components.
67GF Score
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