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SHSE:601956's Gross Margin % is ranked worse than 91.83% of 2999
companies
in the Industrial Products industry
Industry Median: 26.85
vs SHSE:601956: 8.76
Hubei Donper Electromechanical Group Co had a gross margin of 8.85% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Hubei Donper Electromechanical Group Co (SHSE:601956) 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
Hubei Donper Electromechanical Group Co had a gross margin of 8.85% 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.
Hubei Donper Electromechanical Group Co Gross Margin % Related Terms
Hubei Donper Electromechanical 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.
Hubei Donper Electromechanical Group Co Gross Margin % Chart
Hubei Donper Electromechanical Group Co Annual Data
SHSE:601956 vs GEV, ETN, PH: Gross Margin % Comparison
For the Specialty Industrial Machinery subindustry, Hubei Donper Electromechanical 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.
Hubei Donper Electromechanical Group Co Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Hubei Donper Electromechanical Group Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hubei Donper Electromechanical Group 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.
Hubei Donper Electromechanical Group Co (SHSE:601956) has a Gross Margin % of 8.85% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Hubei Donper Electromechanical Group Co and its competitors. This is 32% below median its historical median of 13.11. Over the past decade, Hubei Donper Electromechanical Group Co's Gross Margin % has ranged from 8.76 to 17.25. According to the industry distribution chart, Hubei Donper Electromechanical Group Co ranks #2754 out of 2999 companies in the Industrial Products industry, placing it in the top 91.8%.
Is Hubei Donper Electromechanical Group Co's Gross Margin % too high?
Hubei Donper Electromechanical Group Co's current Gross Margin % of 8.85% is 32% below median its 10-year median of 13.11. Over the past 10 years, this metric has ranged from a low of 8.76 to a high of 17.25. The Industrial Products industry median Gross Margin % is 26.85. Hubei Donper Electromechanical Group Co's value of 8.85% is 67% below this industry median. Based on the distribution chart, Hubei Donper Electromechanical Group Co ranks #2754 out of 2999 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, Hubei Donper Electromechanical Group Co has a GF Score™ of 57/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hubei Donper Electromechanical Group Co's Gross Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Hubei Donper Electromechanical Group Co ranks #2754 out of 2999 companies for Gross Margin %. This places Hubei Donper Electromechanical Group Co in the lower half of its industry. The industry median Gross Margin % is 26.85. Hubei Donper Electromechanical Group Co's value of 8.85% is 67% below this benchmark. Historically, Hubei Donper Electromechanical Group Co's own Gross Margin % has ranged from 8.76 to 17.25 over the past decade. While the company's 10-year median is 13.11 vs. the industry median of 26.85, Hubei Donper Electromechanical 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.85, based on 2,999 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. Hubei Donper Electromechanical Group Co's current Gross Margin % of 8.85% is 67% 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 Hubei Donper Electromechanical Group Co and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hubei Donper Electromechanical Group Co's current Gross Margin % is 8.85%, which is 32% below median its own 10-year median of 13.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hubei Donper Electromechanical Group Co stock overvalued right now?
Based on GuruFocus' analysis, Hubei Donper Electromechanical Group Co (SHSE:601956) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥6.31, compared to a current price of ¥4.45 — trading 29.5% below its estimated fair value. The current Gross Margin % is 8.85%, which is 32% below median its 10-year median of 13.11 and 67% below the Industrial Products industry median of 26.85. Hubei Donper Electromechanical Group Co's overall GF Score™ is 57/100 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 Hubei Donper Electromechanical Group Co (SHSE:601956), the current Gross Margin % is 8.85% 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 Hubei Donper Electromechanical Group Co (SHSE:601956) Overvalued in 2026?
Based on GuruFocus' analysis, Hubei Donper Electromechanical Group Co stock appears to be undervalued.
The current stock price of ¥4.45 is trading 29.5% below its estimated GF Value™ of ¥6.31.
GuruFocus considers Hubei Donper Electromechanical Group Co to be Modestly Undervalued.
Key valuation signals for SHSE:601956:
Gross Margin %: 8.85% (32% below median its 10-year median of 13.11)
GF Value™: ¥6.31 vs. price of ¥4.45 (29.5% below fair value)
Industry Position: 67% below the Industrial Products median (#2754 of 2999)
No single metric tells the full story. See the SHSE:601956 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hubei Donper Electromechanical Group Co Business Description
Hubei Donper Electromechanical Group Co Ltd is engaged in the research, development, and production of refrigeration compressors and commercial refrigeration appliances.
57GF Score
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