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China Merchants Energy Shipping Co (SHSE:601872) 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 Merchants Energy Shipping Co had a gross margin of 41.79% for the quarter that ended in Mar. 2026 => Durable 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 Merchants Energy Shipping Co Gross Margin % Related Terms
China Merchants Energy Shipping 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.
China Merchants Energy Shipping Co Gross Margin % Chart
SHSE:601872 vs WMB, EPD, KMI: Gross Margin % Comparison
For the Oil & Gas Midstream subindustry, China Merchants Energy Shipping 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.
China Merchants Energy Shipping Co Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, China Merchants Energy Shipping Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where China Merchants Energy Shipping 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.
China Merchants Energy Shipping Co (SHSE:601872) has a Gross Margin % of 41.79% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on China Merchants Energy Shipping Co and its competitors. This is 84% above median its historical median of 22.66. Over the past decade, China Merchants Energy Shipping Co's Gross Margin % has ranged from 17.72 to 39.08. According to the industry distribution chart, China Merchants Energy Shipping Co ranks #370 out of 868 companies in the Oil & Gas industry, placing it in the top 42.6%.
Is China Merchants Energy Shipping Co's Gross Margin % too high?
China Merchants Energy Shipping Co's current Gross Margin % of 41.79% is 84% above median its 10-year median of 22.66. Over the past 10 years, this metric has ranged from a low of 17.72 to a high of 39.08. The Oil & Gas industry median Gross Margin % is 25.96. China Merchants Energy Shipping Co's value of 41.79% is 61% above this industry median. Based on the distribution chart, China Merchants Energy Shipping Co ranks #370 out of 868 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, China Merchants Energy Shipping Co has a GF Score™ of 63/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does China Merchants Energy Shipping Co's Gross Margin % compare to WMB and EPD?
According to the Oil & Gas industry distribution chart, China Merchants Energy Shipping Co ranks #370 out of 868 companies for Gross Margin %. This puts China Merchants Energy Shipping Co in the upper half of its industry. The industry median Gross Margin % is 25.96. China Merchants Energy Shipping Co's value of 41.79% is 61% above this benchmark. Historically, China Merchants Energy Shipping Co's own Gross Margin % has ranged from 17.72 to 39.08 over the past decade. While the company's 10-year median is 22.66 vs. the industry median of 25.96, China Merchants Energy Shipping Co has consistently been above 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 an Oil & Gas company?
The median Gross Margin % among Oil & Gas companies is 25.96, based on 868 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 Merchants Energy Shipping Co's current Gross Margin % of 41.79% is 61% above 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 Merchants Energy Shipping Co and its competitors. For the Oil & Gas industry, the median Gross Margin % is 25.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Merchants Energy Shipping Co's current Gross Margin % is 41.79%, which is 84% above median its own 10-year median of 22.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Merchants Energy Shipping Co stock overvalued right now?
Based on GuruFocus' analysis, China Merchants Energy Shipping Co (SHSE:601872) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥8.60, compared to a current price of ¥15.70 — trading 82.6% above its estimated fair value. The current Gross Margin % is 41.79%, which is 84% above median its 10-year median of 22.66 and 61% above the Oil & Gas industry median of 25.96. China Merchants Energy Shipping Co's overall GF Score™ is 63/100 with 2 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 Merchants Energy Shipping Co (SHSE:601872), the current Gross Margin % is 41.79% 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 Merchants Energy Shipping Co (SHSE:601872) Overvalued in 2026?
Based on GuruFocus' analysis, China Merchants Energy Shipping Co stock appears to be overvalued.
The current stock price of ¥15.70 is trading 82.6% above its estimated GF Value™ of ¥8.60.
GuruFocus considers China Merchants Energy Shipping Co to be Significantly Overvalued.
Key valuation signals for SHSE:601872:
Gross Margin %: 41.79% (84% above median its 10-year median of 22.66)
GF Value™: ¥8.60 vs. price of ¥15.70 (82.6% above fair value)
Industry Position: 61% above the Oil & Gas median (#370 of 868)
No single metric tells the full story. See the SHSE:601872 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Merchants Energy Shipping Co Business Description
China Merchants Energy Shipping Co Ltd is a China-based company that engages in tanker transportation, bulk cargo vessel transportation, and liquid natural gas (LNG) vessel transportation. It provides a full range of energy transportation services running a large diversity of vessels, including crude oil tankers, dry bulk carriers, and LNG carriers. It provides services to customers from China, Japan, Korea, Southeast Asia, the United States, and other countries.
63GF Score
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