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Tianjin You Fa Steel Pipe Group Stock Co (SHSE:601686) 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
Tianjin You Fa Steel Pipe Group Stock Co had a gross margin of 2.91% 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.
Tianjin You Fa Steel Pipe Group Stock Co Gross Margin % Related Terms
Tianjin You Fa Steel Pipe Group Stock 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.
Tianjin You Fa Steel Pipe Group Stock Co Gross Margin % Chart
Tianjin You Fa Steel Pipe Group Stock Co Annual Data
SHSE:601686 vs NUE, STLD, RS: Gross Margin % Comparison
For the Steel subindustry, Tianjin You Fa Steel Pipe Group Stock 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.
Tianjin You Fa Steel Pipe Group Stock Co Gross Margin % vs Steel 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.
Tianjin You Fa Steel Pipe Group Stock Co (SHSE:601686) has a Gross Margin % of 2.91% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Tianjin You Fa Steel Pipe Group Stock Co and its competitors. This is near median its historical median of 3.08. Over the past decade, Tianjin You Fa Steel Pipe Group Stock Co's Gross Margin % has ranged from 1.93 to 4.66. According to the industry distribution chart, Tianjin You Fa Steel Pipe Group Stock Co ranks #524 out of 593 companies in the Steel industry, placing it in the top 88.4%.
Is Tianjin You Fa Steel Pipe Group Stock Co's Gross Margin % too high?
Tianjin You Fa Steel Pipe Group Stock Co's current Gross Margin % of 2.91% is near median its 10-year median of 3.08. Over the past 10 years, this metric has ranged from a low of 1.93 to a high of 4.66. The Steel industry median Gross Margin % is 12.60. Tianjin You Fa Steel Pipe Group Stock Co's value of 2.91% is 76.9% below this industry median. Based on the distribution chart, Tianjin You Fa Steel Pipe Group Stock Co ranks #524 out of 593 companies in the Steel industry, which is in the bottom quartile relative to peers. Overall, Tianjin You Fa Steel Pipe Group Stock 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 Tianjin You Fa Steel Pipe Group Stock Co's Gross Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Tianjin You Fa Steel Pipe Group Stock Co ranks #524 out of 593 companies for Gross Margin %. This places Tianjin You Fa Steel Pipe Group Stock Co in the lower half of its industry. The industry median Gross Margin % is 12.60. Tianjin You Fa Steel Pipe Group Stock Co's value of 2.91% is 76.9% below this benchmark. Historically, Tianjin You Fa Steel Pipe Group Stock Co's own Gross Margin % has ranged from 1.93 to 4.66 over the past decade. While the company's 10-year median is 3.08 vs. the industry median of 12.60, Tianjin You Fa Steel Pipe Group Stock 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 12.60, based on 593 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. Tianjin You Fa Steel Pipe Group Stock Co's current Gross Margin % of 2.91% is 76.9% 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 Tianjin You Fa Steel Pipe Group Stock Co and its competitors. For the Steel industry, the median Gross Margin % is 12.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tianjin You Fa Steel Pipe Group Stock Co's current Gross Margin % is 2.91%, which is near median its own 10-year median of 3.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tianjin You Fa Steel Pipe Group Stock Co stock overvalued right now?
Based on GuruFocus' analysis, Tianjin You Fa Steel Pipe Group Stock Co (SHSE:601686) is currently considered Fairly Valued. The stock's GF Value™ is ¥5.46, compared to a current price of ¥5.08 — trading 7% below its estimated fair value. The current Gross Margin % is 2.91%, which is near median its 10-year median of 3.08 and 76.9% below the Steel industry median of 12.60. Tianjin You Fa Steel Pipe Group Stock Co's overall GF Score™ is 65/100 with 5 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 Tianjin You Fa Steel Pipe Group Stock Co (SHSE:601686), the current Gross Margin % is 2.91% 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 Tianjin You Fa Steel Pipe Group Stock Co (SHSE:601686) Overvalued in 2026?
Based on GuruFocus' analysis, Tianjin You Fa Steel Pipe Group Stock Co stock appears to be undervalued.
The current stock price of ¥5.08 is trading 7% below its estimated GF Value™ of ¥5.46.
GuruFocus considers Tianjin You Fa Steel Pipe Group Stock Co to be Fairly Valued.
Key valuation signals for SHSE:601686:
Gross Margin %: 2.91% (near median its 10-year median of 3.08)
GF Value™: ¥5.46 vs. price of ¥5.08 (7% below fair value)
Industry Position: 76.9% below the Steel median (#524 of 593)
No single metric tells the full story. See the SHSE:601686 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tianjin You Fa Steel Pipe Group Stock Co Business Description
Tianjin You Fa Steel Pipe Group Stock Co Ltd formerly Tianjin Youfa Steel Pipe Group Co Ltd is primarily involved in the development, production and sales of welded steel pipes. It offers welded pipes, hot-dip galvanized steel pipes, steel-plastic composite pipes, stainless steel composite pipes, spiral steel pipes and others.
65GF Score
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