SHSE:600835's Gross Margin % is ranked worse than 79.25% of 2993
companies
in the Industrial Products industry
Industry Median: 26.83
vs SHSE:600835: 15.39
Shanghai Mechanical & Electrical Industry Co had a gross margin of 16.15% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Shanghai Mechanical & Electrical Industry Co (SHSE:600835) 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 Mechanical & Electrical Industry Co had a gross margin of 16.15% 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 Mechanical & Electrical Industry Co Gross Margin % Related Terms
Shanghai Mechanical & Electrical Industry 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 Mechanical & Electrical Industry Co Gross Margin % Chart
Shanghai Mechanical & Electrical Industry Co Annual Data
SHSE:600835 vs GEV, ETN, PH: Gross Margin % Comparison
For the Specialty Industrial Machinery subindustry, Shanghai Mechanical & Electrical Industry 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 Mechanical & Electrical Industry Co Gross Margin % vs Industrial Products Industry
* 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 Mechanical & Electrical Industry Co (SHSE:600835) has a Gross Margin % of 16.15% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Shanghai Mechanical & Electrical Industry Co and its competitors. This is near median its historical median of 16.66. Over the past decade, Shanghai Mechanical & Electrical Industry Co's Gross Margin % has ranged from 15.32 to 21.95. According to the industry distribution chart, Shanghai Mechanical & Electrical Industry Co ranks #2372 out of 2993 companies in the Industrial Products industry, placing it in the top 79.3%.
Is Shanghai Mechanical & Electrical Industry Co's Gross Margin % too high?
Shanghai Mechanical & Electrical Industry Co's current Gross Margin % of 16.15% is near median its 10-year median of 16.66. Over the past 10 years, this metric has ranged from a low of 15.32 to a high of 21.95. The Industrial Products industry median Gross Margin % is 26.83. Shanghai Mechanical & Electrical Industry Co's value of 16.15% is 39.8% below this industry median. Based on the distribution chart, Shanghai Mechanical & Electrical Industry Co ranks #2372 out of 2993 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, Shanghai Mechanical & Electrical Industry Co has a GF Score™ of 65/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shanghai Mechanical & Electrical Industry Co's Gross Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Shanghai Mechanical & Electrical Industry Co ranks #2372 out of 2993 companies for Gross Margin %. This places Shanghai Mechanical & Electrical Industry Co in the lower half of its industry. The industry median Gross Margin % is 26.83. Shanghai Mechanical & Electrical Industry Co's value of 16.15% is 39.8% below this benchmark. Historically, Shanghai Mechanical & Electrical Industry Co's own Gross Margin % has ranged from 15.32 to 21.95 over the past decade. While the company's 10-year median is 16.66 vs. the industry median of 26.83, Shanghai Mechanical & Electrical Industry 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.83, based on 2,993 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 Mechanical & Electrical Industry Co's current Gross Margin % of 16.15% is 39.8% 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 Shanghai Mechanical & Electrical Industry Co and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shanghai Mechanical & Electrical Industry Co's current Gross Margin % is 16.15%, which is near median its own 10-year median of 16.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanghai Mechanical & Electrical Industry Co stock overvalued right now?
Based on GuruFocus' analysis, Shanghai Mechanical & Electrical Industry Co (SHSE:600835) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥16.55, compared to a current price of ¥21.04 — trading 27.1% above its estimated fair value. The current Gross Margin % is 16.15%, which is near median its 10-year median of 16.66 and 39.8% below the Industrial Products industry median of 26.83. Shanghai Mechanical & Electrical Industry Co's overall GF Score™ is 65/100 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 Mechanical & Electrical Industry Co (SHSE:600835), the current Gross Margin % is 16.15% 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 Mechanical & Electrical Industry Co (SHSE:600835) Overvalued in 2026?
Based on GuruFocus' analysis, Shanghai Mechanical & Electrical Industry Co stock appears to be overvalued.
The current stock price of ¥21.04 is trading 27.1% above its estimated GF Value™ of ¥16.55.
GuruFocus considers Shanghai Mechanical & Electrical Industry Co to be Modestly Overvalued.
Key valuation signals for SHSE:600835:
Gross Margin %: 16.15% (near median its 10-year median of 16.66)
GF Value™: ¥16.55 vs. price of ¥21.04 (27.1% above fair value)
Industry Position: 39.8% below the Industrial Products median (#2372 of 2993)
No single metric tells the full story. See the SHSE:600835 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shanghai Mechanical & Electrical Industry Co Business Description
Shanghai Mechanical & Electrical Industry Co Ltd mainly operates as a distributor and manufacturer of the mechanical and electrical equipment. It provides products such as escalators, printing and packaging machines, refrigeration and air conditioning and welding equipment, engineering machineries, wood-based panel machineries, energy engineering, hydraulic and pneumatic products and electrical equipment.
65GF Score
Get the complete analysis for SHSE:600835
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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