Shanghai Tunnel Engineering Co (SHSE:600820) 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 Tunnel Engineering Co had a gross margin of 15.48% 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 Tunnel Engineering Co Gross Margin % Related Terms
Shanghai Tunnel Engineering 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.
Shanghai Tunnel Engineering Co Gross Margin % Chart
SHSE:600820 vs PWR, FIX, EME: Gross Margin % Comparison
For the Engineering & Construction subindustry, Shanghai Tunnel Engineering 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 Tunnel Engineering Co Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Shanghai Tunnel Engineering Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Shanghai Tunnel Engineering 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 Tunnel Engineering Co (SHSE:600820) has a Gross Margin % of 15.48% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Shanghai Tunnel Engineering Co and its competitors. This is 27% above median its historical median of 12.20. Over the past decade, Shanghai Tunnel Engineering Co's Gross Margin % has ranged from 10.29 to 14.02. According to the industry distribution chart, Shanghai Tunnel Engineering Co ranks #1173 out of 1718 companies in the Construction industry, placing it in the top 68.3%.
Is Shanghai Tunnel Engineering Co's Gross Margin % too high?
Shanghai Tunnel Engineering Co's current Gross Margin % of 15.48% is 27% above median its 10-year median of 12.20. Over the past 10 years, this metric has ranged from a low of 10.29 to a high of 14.02. The Construction industry median Gross Margin % is 20.79. Shanghai Tunnel Engineering Co's value of 15.48% is 25.5% below this industry median. Based on the distribution chart, Shanghai Tunnel Engineering Co ranks #1173 out of 1718 companies in the Construction industry, which is below the industry midpoint. Overall, Shanghai Tunnel Engineering Co has a GF Score™ of 70/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shanghai Tunnel Engineering Co's Gross Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Shanghai Tunnel Engineering Co ranks #1173 out of 1718 companies for Gross Margin %. This places Shanghai Tunnel Engineering Co in the lower half of its industry. The industry median Gross Margin % is 20.79. Shanghai Tunnel Engineering Co's value of 15.48% is 25.5% below this benchmark. Historically, Shanghai Tunnel Engineering Co's own Gross Margin % has ranged from 10.29 to 14.02 over the past decade. While the company's 10-year median is 12.20 vs. the industry median of 20.79, Shanghai Tunnel Engineering 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 Construction company?
The median Gross Margin % among Construction companies is 20.79, based on 1,718 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 Tunnel Engineering Co's current Gross Margin % of 15.48% is 25.5% 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 Tunnel Engineering Co and its competitors. For the Construction industry, the median Gross Margin % is 20.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shanghai Tunnel Engineering Co's current Gross Margin % is 15.48%, which is 27% above median its own 10-year median of 12.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanghai Tunnel Engineering Co stock overvalued right now?
Based on GuruFocus' analysis, Shanghai Tunnel Engineering Co (SHSE:600820) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥4.64, compared to a current price of ¥5.34 — trading 15.1% above its estimated fair value. The current Gross Margin % is 15.48%, which is 27% above median its 10-year median of 12.20 and 25.5% below the Construction industry median of 20.79. Shanghai Tunnel Engineering Co's overall GF Score™ is 70/100 with 5 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 Tunnel Engineering Co (SHSE:600820), the current Gross Margin % is 15.48% 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 Shanghai Tunnel Engineering Co (SHSE:600820) Overvalued in 2026?
Based on GuruFocus' analysis, Shanghai Tunnel Engineering Co stock appears to be overvalued.
The current stock price of ¥5.34 is trading 15.1% above its estimated GF Value™ of ¥4.64.
GuruFocus considers Shanghai Tunnel Engineering Co to be Modestly Overvalued.
Key valuation signals for SHSE:600820:
Gross Margin %: 15.48% (27% above median its 10-year median of 12.20)
GF Value™: ¥4.64 vs. price of ¥5.34 (15.1% above fair value)
Industry Position: 25.5% below the Construction median (#1173 of 1718)
No single metric tells the full story. See the SHSE:600820 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shanghai Tunnel Engineering Co Business Description
Shanghai Tunnel Engineering Co Ltd is a China-based engineering & construction company. It is engaged in the construction of railways, highways, tunnels and bridges, real estate, water service, green material.
70GF Score
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