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Baotailong New Materials Co (SHSE:601011) 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
Baotailong New Materials Co had a gross margin of -6.48% 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.
Baotailong New Materials Co Gross Margin % Related Terms
Baotailong New Materials 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:601011 vs HCC, AMR, SXC: Gross Margin % Comparison
For the Coking Coal subindustry, Baotailong New Materials 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.
Baotailong New Materials Co Gross Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Baotailong New Materials Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Baotailong New Materials 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.
Baotailong New Materials Co (SHSE:601011) has a Gross Margin % of -6.48% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Baotailong New Materials Co and its competitors. According to the industry distribution chart, Baotailong New Materials Co ranks #406 out of 595 companies in the Steel industry, placing it in the top 68.2%.
Is Baotailong New Materials Co's Gross Margin % too high?
Baotailong New Materials Co's current Gross Margin % is -6.48%. Based on the distribution chart, Baotailong New Materials Co ranks #406 out of 595 companies in the Steel industry, which is below the industry midpoint. Overall, Baotailong New Materials Co has a GF Score™ of 28/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Baotailong New Materials Co's Gross Margin % compare to HCC and AMR?
According to the Steel industry distribution chart, Baotailong New Materials Co ranks #406 out of 595 companies for Gross Margin %. This places Baotailong New Materials Co in the lower half of its industry. The industry median Gross Margin % is 12.50. 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 12.50, based on 595 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. 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 Baotailong New Materials Co and its competitors. For the Steel industry, the median Gross Margin % is 12.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Baotailong New Materials Co's current Gross Margin % is -6.48%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Baotailong New Materials Co stock overvalued right now?
Based on GuruFocus' analysis, Baotailong New Materials Co (SHSE:601011) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥0.80, compared to a current price of ¥2.57 — trading 221.3% above its estimated fair value. The current Gross Margin % is -6.48%. Baotailong New Materials Co's overall GF Score™ is 28/100 with 3 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 Baotailong New Materials Co (SHSE:601011), the current Gross Margin % is -6.48% 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 Baotailong New Materials Co (SHSE:601011) Overvalued in 2026?
Based on GuruFocus' analysis, Baotailong New Materials Co stock appears to be overvalued.
The current stock price of ¥2.57 is trading 221.3% above its estimated GF Value™ of ¥0.80.
GuruFocus considers Baotailong New Materials Co to be Significantly Overvalued.
Key valuation signals for SHSE:601011:
Gross Margin %: -6.48%
GF Value™: ¥0.80 vs. price of ¥2.57 (221.3% above fair value)
No single metric tells the full story. See the SHSE:601011 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Baotailong New Materials Co Ltd engages in coal mining, washing, and processing operations in China. Its products include metallurgical coke, coal tar, crude benzene, coal, methanol, fusel oil, fuel oil, naphtha, coal tar pitch, etc. for steel mills and chemical companies. The company is also involved in power generation and steam production activities. It also exports its products to Russia.
28GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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