Shanghai Guangdian Electric Group Co (SHSE:601616) 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 Guangdian Electric Group Co had a gross margin of 19.91% 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 Guangdian Electric Group Co Gross Margin % Related Terms
Shanghai Guangdian Electric Group 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 Guangdian Electric Group Co Gross Margin % Chart
SHSE:601616 vs SNX, ARW, AVT: Gross Margin % Comparison
For the Electronics & Computer Distribution subindustry, Shanghai Guangdian Electric Group 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 Guangdian Electric Group Co Gross Margin % vs Hardware 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 Guangdian Electric Group Co (SHSE:601616) has a Gross Margin % of 19.91% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Shanghai Guangdian Electric Group Co and its competitors. This is 26% below median its historical median of 26.98. Over the past decade, Shanghai Guangdian Electric Group Co's Gross Margin % has ranged from 21.50 to 32.39. According to the industry distribution chart, Shanghai Guangdian Electric Group Co ranks #1216 out of 2449 companies in the Hardware industry, placing it in the top 49.7%.
Is Shanghai Guangdian Electric Group Co's Gross Margin % too high?
Shanghai Guangdian Electric Group Co's current Gross Margin % of 19.91% is 26% below median its 10-year median of 26.98. Over the past 10 years, this metric has ranged from a low of 21.50 to a high of 32.39. The Hardware industry median Gross Margin % is 24.50. Shanghai Guangdian Electric Group Co's value of 19.91% is 18.7% below this industry median. Based on the distribution chart, Shanghai Guangdian Electric Group Co ranks #1216 out of 2449 companies in the Hardware industry, which is above the industry midpoint. Overall, Shanghai Guangdian Electric Group Co has a GF Score™ of 60/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Shanghai Guangdian Electric Group Co's Gross Margin % compare to SNX and ARW?
According to the Hardware industry distribution chart, Shanghai Guangdian Electric Group Co ranks #1216 out of 2449 companies for Gross Margin %. This puts Shanghai Guangdian Electric Group Co in the upper half of its industry. The industry median Gross Margin % is 24.50. Shanghai Guangdian Electric Group Co's value of 19.91% is 18.7% below this benchmark. Historically, Shanghai Guangdian Electric Group Co's own Gross Margin % has ranged from 21.50 to 32.39 over the past decade. While the company's 10-year median is 26.98 vs. the industry median of 24.50, Shanghai Guangdian Electric Group 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 Hardware company?
The median Gross Margin % among Hardware companies is 24.50, based on 2,449 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 Guangdian Electric Group Co's current Gross Margin % of 19.91% is 18.7% 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 Guangdian Electric Group Co and its competitors. For the Hardware industry, the median Gross Margin % is 24.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shanghai Guangdian Electric Group Co's current Gross Margin % is 19.91%, which is 26% below median its own 10-year median of 26.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanghai Guangdian Electric Group Co stock overvalued right now?
Based on GuruFocus' analysis, Shanghai Guangdian Electric Group Co (SHSE:601616) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥3.57, compared to a current price of ¥3.19 — trading 10.6% below its estimated fair value. The current Gross Margin % is 19.91%, which is 26% below median its 10-year median of 26.98 and 18.7% below the Hardware industry median of 24.50. Shanghai Guangdian Electric Group Co's overall GF Score™ is 60/100 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 Shanghai Guangdian Electric Group Co (SHSE:601616), the current Gross Margin % is 19.91% 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 Guangdian Electric Group Co (SHSE:601616) Overvalued in 2026?
Based on GuruFocus' analysis, Shanghai Guangdian Electric Group Co stock appears to be undervalued.
The current stock price of ¥3.19 is trading 10.6% below its estimated GF Value™ of ¥3.57.
GuruFocus considers Shanghai Guangdian Electric Group Co to be Modestly Undervalued.
Key valuation signals for SHSE:601616:
Gross Margin %: 19.91% (26% below median its 10-year median of 26.98)
GF Value™: ¥3.57 vs. price of ¥3.19 (10.6% below fair value)
Industry Position: 18.7% below the Hardware median (#1216 of 2449)
No single metric tells the full story. See the SHSE:601616 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shanghai Guangdian Electric Group Co Business Description
Shanghai Guangdian Electric Group Co Ltd designs, develops, manufactures, and markets distribution and control products and solution services in China. The company provides switchgear, medium voltage equipment, vacuum circuit breakers, low voltage switchgear and distribution panels among others.
60GF Score
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