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What is Zhejiang Red Dragonfly Footwear Co Gross Margin %?
Zhejiang Red Dragonfly Footwear CoSHSE:603116 +6.62%60 Gross Margin % is 38.99% as of Jun. 2026, which is 12% above its 10-year median of 34.71. GuruFocus rates SHSE:603116 with a GF Score™ of 60/100 and a GF Value™ of ¥6.11 (Fairly Valued). The stock has 1 warning sign investors should review. Among 1,034 Manufacturing - Apparel & Accessories companies, Zhejiang Red Dragonfly Footwear Co ranks better than 63.44% on this metric.
SHSE:603116's Gross Margin % is ranked better than 63.44% of 1034
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 28.66
vs SHSE:603116: 39.16
Zhejiang Red Dragonfly Footwear Co had a gross margin of 38.99% for the quarter that ended in Jun. 2026 => Competition eroding margins
Zhejiang Red Dragonfly Footwear Co (SHSE:603116) 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
Zhejiang Red Dragonfly Footwear Co had a gross margin of 38.99% for the quarter that ended in Jun. 2026 => Competition eroding margins
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.
Zhejiang Red Dragonfly Footwear Co Gross Margin % Related Terms
Zhejiang Red Dragonfly Footwear 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.
Zhejiang Red Dragonfly Footwear Co Gross Margin % Chart
SHSE:603116 vs NKE, DECK, ONON: Gross Margin % Comparison
For the Footwear & Accessories subindustry, Zhejiang Red Dragonfly Footwear 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.
Zhejiang Red Dragonfly Footwear Co Gross Margin % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Zhejiang Red Dragonfly Footwear Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Zhejiang Red Dragonfly Footwear 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.
Zhejiang Red Dragonfly Footwear Co (SHSE:603116) has a Gross Margin % of 38.99% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Zhejiang Red Dragonfly Footwear Co and its competitors. This is 12% above median its historical median of 34.71. Over the past decade, Zhejiang Red Dragonfly Footwear Co's Gross Margin % has ranged from 33.41 to 39.16. According to the industry distribution chart, Zhejiang Red Dragonfly Footwear Co ranks #378 out of 1034 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 36.6%.
Is Zhejiang Red Dragonfly Footwear Co's Gross Margin % too high?
Zhejiang Red Dragonfly Footwear Co's current Gross Margin % of 38.99% is 12% above median its 10-year median of 34.71. Over the past 10 years, this metric has ranged from a low of 33.41 to a high of 39.16. The Manufacturing - Apparel & Accessories industry median Gross Margin % is 28.66. Zhejiang Red Dragonfly Footwear Co's value of 38.99% is 36% above this industry median. Based on the distribution chart, Zhejiang Red Dragonfly Footwear Co ranks #378 out of 1034 companies in the Manufacturing - Apparel & Accessories industry, which is above the industry midpoint. Overall, Zhejiang Red Dragonfly Footwear Co has a GF Score™ of 60/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Zhejiang Red Dragonfly Footwear Co's Gross Margin % compare to NKE and DECK?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Zhejiang Red Dragonfly Footwear Co ranks #378 out of 1034 companies for Gross Margin %. This puts Zhejiang Red Dragonfly Footwear Co in the upper half of its industry. The industry median Gross Margin % is 28.66. Zhejiang Red Dragonfly Footwear Co's value of 38.99% is 36% above this benchmark. Historically, Zhejiang Red Dragonfly Footwear Co's own Gross Margin % has ranged from 33.41 to 39.16 over the past decade. While the company's 10-year median is 34.71 vs. the industry median of 28.66, Zhejiang Red Dragonfly Footwear 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 a Manufacturing - Apparel & Accessories company?
The median Gross Margin % among Manufacturing - Apparel & Accessories companies is 28.66, based on 1,034 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. Zhejiang Red Dragonfly Footwear Co's current Gross Margin % of 38.99% is 36% 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 Zhejiang Red Dragonfly Footwear Co and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Gross Margin % is 28.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhejiang Red Dragonfly Footwear Co's current Gross Margin % is 38.99%, which is 12% above median its own 10-year median of 34.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhejiang Red Dragonfly Footwear Co stock overvalued right now?
Based on GuruFocus' analysis, Zhejiang Red Dragonfly Footwear Co (SHSE:603116) is currently considered Fairly Valued. The stock's GF Value™ is ¥6.11, compared to a current price of ¥6.60 — trading 8% above its estimated fair value. The current Gross Margin % is 38.99%, which is 12% above median its 10-year median of 34.71 and 36% above the Manufacturing - Apparel & Accessories industry median of 28.66. Zhejiang Red Dragonfly Footwear Co's overall GF Score™ is 60/100 with 1 warning sign 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 Zhejiang Red Dragonfly Footwear Co (SHSE:603116), the current Gross Margin % is 38.99% as of Jun. 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 Zhejiang Red Dragonfly Footwear Co (SHSE:603116) Overvalued in 2026?
Based on GuruFocus' analysis, Zhejiang Red Dragonfly Footwear Co stock appears to be overvalued.
The current stock price of ¥6.60 is trading 8% above its estimated GF Value™ of ¥6.11.
GuruFocus considers Zhejiang Red Dragonfly Footwear Co to be Fairly Valued.
Key valuation signals for SHSE:603116:
Gross Margin %: 38.99% (12% above median its 10-year median of 34.71)
GF Value™: ¥6.11 vs. price of ¥6.60 (8% above fair value)
Industry Position: 36% above the Manufacturing - Apparel & Accessories median (#378 of 1034)
No single metric tells the full story. See the SHSE:603116 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhejiang Red Dragonfly Footwear Co Ltd is engaged in research and development, production and sale of Red Dragonfly brand shoes and leather goods, clothing and other industry. The company main products include men's and women's shoes, children's shoes and apparels, leather belts, wallets, and leather handbags, among others.
60GF Score
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