Gem-Year Industrial CoSHSE:601002 +4.58%65 Gross Margin % is 31.24% as of Mar. 2026, which is 51% above its 10-year median of 20.67. GuruFocus rates SHSE:601002 with a GF Score™ of 65/100 and a GF Value™ of ¥4.32 (Fairly Valued). The stock has 2 warning signs investors should review. Among 2,993 Industrial Products companies, Gem-Year Industrial Co ranks worse than 50.12% on this metric.
SHSE:601002's Gross Margin % is ranked worse than 50.12% of 2993
companies
in the Industrial Products industry
Industry Median: 26.81
vs SHSE:601002: 26.78
Gem-Year Industrial Co had a gross margin of 31.24% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Gem-Year Industrial Co was 2.00% per year.
Gem-Year Industrial Co (SHSE:601002) 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
Gem-Year Industrial Co had a gross margin of 31.24% 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.
Gem-Year Industrial Co Gross Margin % Related Terms
Gem-Year Industrial Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Gem-Year Industrial Co's Gross Margin % can be seen below:
* 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:601002 vs SNA, RBC, LECO: Gross Margin % Comparison
For the Tools & Accessories subindustry, Gem-Year Industrial 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.
Gem-Year Industrial Co Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Gem-Year Industrial Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Gem-Year Industrial 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.
Gem-Year Industrial Co (SHSE:601002) has a Gross Margin % of 31.24% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Gem-Year Industrial Co and its competitors. This is 51% above median its historical median of 20.67. Over the past decade, Gem-Year Industrial Co's Gross Margin % has ranged from 12.19 to 26.78. According to the industry distribution chart, Gem-Year Industrial Co ranks #1500 out of 2993 companies in the Industrial Products industry, placing it in the top 50.1%.
Is Gem-Year Industrial Co's Gross Margin % too high?
Gem-Year Industrial Co's current Gross Margin % of 31.24% is 51% above median its 10-year median of 20.67. Over the past 10 years, this metric has ranged from a low of 12.19 to a high of 26.78. The Industrial Products industry median Gross Margin % is 26.81. Gem-Year Industrial Co's value of 31.24% is 16.5% above this industry median. Based on the distribution chart, Gem-Year Industrial Co ranks #1500 out of 2993 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Gem-Year Industrial Co has a GF Score™ of 65/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Gem-Year Industrial Co's Gross Margin % compare to SNA and RBC?
According to the Industrial Products industry distribution chart, Gem-Year Industrial Co ranks #1500 out of 2993 companies for Gross Margin %. This places Gem-Year Industrial Co in the lower half of its industry. The industry median Gross Margin % is 26.81. Gem-Year Industrial Co's value of 31.24% is 16.5% above this benchmark. Historically, Gem-Year Industrial Co's own Gross Margin % has ranged from 12.19 to 26.78 over the past decade. While the company's 10-year median is 20.67 vs. the industry median of 26.81, Gem-Year Industrial 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 26.81, 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. Gem-Year Industrial Co's current Gross Margin % of 31.24% is 16.5% 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 Gem-Year Industrial Co and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gem-Year Industrial Co's current Gross Margin % is 31.24%, which is 51% above median its own 10-year median of 20.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gem-Year Industrial Co stock overvalued right now?
Based on GuruFocus' analysis, Gem-Year Industrial Co (SHSE:601002) is currently considered Fairly Valued. The stock's GF Value™ is ¥4.32, compared to a current price of ¥4.57 — trading 5.8% above its estimated fair value. The current Gross Margin % is 31.24%, which is 51% above median its 10-year median of 20.67 and 16.5% above the Industrial Products industry median of 26.81. Gem-Year Industrial Co's overall GF Score™ is 65/100 with 2 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 Gem-Year Industrial Co (SHSE:601002), the current Gross Margin % is 31.24% 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 Gem-Year Industrial Co (SHSE:601002) Overvalued in 2026?
Based on GuruFocus' analysis, Gem-Year Industrial Co stock appears to be overvalued.
The current stock price of ¥4.57 is trading 5.8% above its estimated GF Value™ of ¥4.32.
GuruFocus considers Gem-Year Industrial Co to be Fairly Valued.
Key valuation signals for SHSE:601002:
Gross Margin %: 31.24% (51% above median its 10-year median of 20.67)
GF Value™: ¥4.32 vs. price of ¥4.57 (5.8% above fair value)
Industry Position: 16.5% above the Industrial Products median (#1500 of 2993)
No single metric tells the full story. See the SHSE:601002 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gem-Year Industrial Co Ltd operates as a fastener manufacturer in China. Its products include bolts, nuts, screws, drawn air and fasteners. master toolset, tools storage, sockets, wrench and cutting tools.
65GF Score
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