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China Railway ConstructionSHSE:601186 +0.77%68 Gross Margin % is 7.86% as of Mar. 2026, which is 19% below its 10-year median of 9.68. GuruFocus rates SHSE:601186 with a GF Score™ of 68/100 and a GF Value™ of ¥7.43 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 1,725 Construction companies, China Railway Construction ranks worse than 81.04% on this metric.
China Railway Construction (SHSE:601186) 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
China Railway Construction had a gross margin of 7.86% 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.
China Railway Construction Gross Margin % Related Terms
China Railway Construction 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:601186 vs PWR, FIX, EME: Gross Margin % Comparison
For the Engineering & Construction subindustry, China Railway Construction'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.
China Railway Construction Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, China Railway Construction's Gross Margin % distribution charts can be found below:
* The bar in red indicates where China Railway Construction'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.
China Railway Construction (SHSE:601186) has a Gross Margin % of 7.86% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on China Railway Construction and its competitors. This is 19% below median its historical median of 9.68. Over the past decade, China Railway Construction's Gross Margin % has ranged from 9.21 to 10.39. According to the industry distribution chart, China Railway Construction ranks #1398 out of 1725 companies in the Construction industry, placing it in the top 81%.
Is China Railway Construction's Gross Margin % too high?
China Railway Construction's current Gross Margin % of 7.86% is 19% below median its 10-year median of 9.68. Over the past 10 years, this metric has ranged from a low of 9.21 to a high of 10.39. The Construction industry median Gross Margin % is 20.70. China Railway Construction's value of 7.86% is 62% below this industry median. Based on the distribution chart, China Railway Construction ranks #1398 out of 1725 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, China Railway Construction has a GF Score™ of 68/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Railway Construction's Gross Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, China Railway Construction ranks #1398 out of 1725 companies for Gross Margin %. This places China Railway Construction in the lower half of its industry. The industry median Gross Margin % is 20.70. China Railway Construction's value of 7.86% is 62% below this benchmark. Historically, China Railway Construction's own Gross Margin % has ranged from 9.21 to 10.39 over the past decade. While the company's 10-year median is 9.68 vs. the industry median of 20.70, China Railway Construction 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 20.70, based on 1,725 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. China Railway Construction's current Gross Margin % of 7.86% is 62% 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 China Railway Construction and its competitors. For the Construction industry, the median Gross Margin % is 20.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Railway Construction's current Gross Margin % is 7.86%, which is 19% below median its own 10-year median of 9.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Railway Construction stock overvalued right now?
Based on GuruFocus' analysis, China Railway Construction (SHSE:601186) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥7.43, compared to a current price of ¥6.58 — trading 11.4% below its estimated fair value. The current Gross Margin % is 7.86%, which is 19% below median its 10-year median of 9.68 and 62% below the Construction industry median of 20.70. China Railway Construction's overall GF Score™ is 68/100 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 China Railway Construction (SHSE:601186), the current Gross Margin % is 7.86% 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 China Railway Construction (SHSE:601186) Overvalued in 2026?
Based on GuruFocus' analysis, China Railway Construction stock appears to be undervalued.
The current stock price of ¥6.58 is trading 11.4% below its estimated GF Value™ of ¥7.43.
GuruFocus considers China Railway Construction to be Modestly Undervalued.
Key valuation signals for SHSE:601186:
Gross Margin %: 7.86% (19% below median its 10-year median of 9.68)
GF Value™: ¥7.43 vs. price of ¥6.58 (11.4% below fair value)
Industry Position: 62% below the Construction median (#1398 of 1725)
No single metric tells the full story. See the SHSE:601186 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Railway Construction Corp Ltd operates as an infrastructure construction firm. It largely derives contracting revenue. It builds railways, highways and municipal works, such as subways and light rail systems. The company also engages in survey and design, manufacturing, logistics, and property development. It operates the following business segments: Engineering contracting business, Planning, design and consultancy, Manufacturing operation, Real estate development operation, Materials and logistics and other businesses. The firm's revenue gets dominated by the Engineering contracting business segment that engages in the construction of infrastructure such as railways, highways, metropolitan railways, and real estate projects.
68GF 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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