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Liuzhou Iron & Steel CoSHSE:601003 -1.68%51 Gross Margin % is 3.96% as of Mar. 2026, which is 39% below its 10-year median of 6.51. GuruFocus rates SHSE:601003 with a GF Score™ of 51/100 and a GF Value™ of ¥3.14 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 594 Steel companies, Liuzhou Iron & Steel Co ranks worse than 80.64% on this metric.
SHSE:601003's Gross Margin % is ranked worse than 80.64% of 594
companies
in the Steel industry
Industry Median: 12.55
vs SHSE:601003: 5.09
Liuzhou Iron & Steel Co had a gross margin of 3.96% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Liuzhou Iron & Steel Co was 0.00% per year.
Liuzhou Iron & Steel Co (SHSE:601003) 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
Liuzhou Iron & Steel Co had a gross margin of 3.96% 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.
Liuzhou Iron & Steel Co Gross Margin % Related Terms
Liuzhou Iron & Steel 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:601003 vs NUE, STLD, RS: Gross Margin % Comparison
For the Steel subindustry, Liuzhou Iron & Steel 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.
Liuzhou Iron & Steel Co Gross Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Liuzhou Iron & Steel Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Liuzhou Iron & Steel 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.
Liuzhou Iron & Steel Co (SHSE:601003) has a Gross Margin % of 3.96% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Liuzhou Iron & Steel Co and its competitors. This is 39% below median its historical median of 6.51. According to the industry distribution chart, Liuzhou Iron & Steel Co ranks #479 out of 594 companies in the Steel industry, placing it in the top 80.6%.
Is Liuzhou Iron & Steel Co's Gross Margin % too high?
Liuzhou Iron & Steel Co's current Gross Margin % of 3.96% is 39% below median its 10-year median of 6.51. The Steel industry median Gross Margin % is 12.55. Liuzhou Iron & Steel Co's value of 3.96% is 68.4% below this industry median. Based on the distribution chart, Liuzhou Iron & Steel Co ranks #479 out of 594 companies in the Steel industry, which is in the bottom quartile relative to peers. Overall, Liuzhou Iron & Steel Co has a GF Score™ of 51/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Liuzhou Iron & Steel Co's Gross Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Liuzhou Iron & Steel Co ranks #479 out of 594 companies for Gross Margin %. This places Liuzhou Iron & Steel Co in the lower half of its industry. The industry median Gross Margin % is 12.55. Liuzhou Iron & Steel Co's value of 3.96% is 68.4% below this benchmark. While the company's 10-year median is 6.51 vs. the industry median of 12.55, Liuzhou Iron & Steel 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 Steel company?
The median Gross Margin % among Steel companies is 12.55, based on 594 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. Liuzhou Iron & Steel Co's current Gross Margin % of 3.96% is 68.4% 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 Liuzhou Iron & Steel Co and its competitors. For the Steel industry, the median Gross Margin % is 12.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Liuzhou Iron & Steel Co's current Gross Margin % is 3.96%, which is 39% below median its own 10-year median of 6.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Liuzhou Iron & Steel Co stock overvalued right now?
Based on GuruFocus' analysis, Liuzhou Iron & Steel Co (SHSE:601003) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥3.14, compared to a current price of ¥3.52 — trading 12.1% above its estimated fair value. The current Gross Margin % is 3.96%, which is 39% below median its 10-year median of 6.51 and 68.4% below the Steel industry median of 12.55. Liuzhou Iron & Steel Co's overall GF Score™ is 51/100 with 6 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 Liuzhou Iron & Steel Co (SHSE:601003), the current Gross Margin % is 3.96% 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 Liuzhou Iron & Steel Co (SHSE:601003) Overvalued in 2026?
Based on GuruFocus' analysis, Liuzhou Iron & Steel Co stock appears to be overvalued.
The current stock price of ¥3.52 is trading 12.1% above its estimated GF Value™ of ¥3.14.
GuruFocus considers Liuzhou Iron & Steel Co to be Modestly Overvalued.
Key valuation signals for SHSE:601003:
Gross Margin %: 3.96% (39% below median its 10-year median of 6.51)
GF Value™: ¥3.14 vs. price of ¥3.52 (12.1% above fair value)
Industry Position: 68.4% below the Steel median (#479 of 594)
No single metric tells the full story. See the SHSE:601003 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Liuzhou Iron & Steel Co Ltd is a China-based steel company. It is engaged in the manufacturing of iron and steel. The company specializes in producing value-added plate, rebar, wire, channel steel, round steel, angle steel, ship plate, boilerplate and die steel. The company also exports its products to Asia, Japan, South Korea and Europe.
51GF Score
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