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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Sinoma Energy ConservationSHSE:603126 +1.72%62 Gross Margin % is 12.32% as of Mar. 2026, which is 38% below its 10-year median of 19.87. GuruFocus rates SHSE:603126 with a GF Score™ of 62/100 and a GF Value™ of ¥9.92 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 407 Utilities - Independent Power Producers companies, Sinoma Energy Conservation ranks worse than 81.82% on this metric.
SHSE:603126's Gross Margin % is ranked worse than 81.82% of 407
companies
in the Utilities - Independent Power Producers industry
Industry Median: 31.35
vs SHSE:603126: 12.23
Sinoma Energy Conservation had a gross margin of 12.32% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Sinoma Energy Conservation (SHSE:603126) 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
Sinoma Energy Conservation had a gross margin of 12.32% 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.
Sinoma Energy Conservation Gross Margin % Related Terms
Sinoma Energy Conservation 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.
Sinoma Energy Conservation Gross Margin % Competitor Comparison
For the Utilities - Renewable subindustry, Sinoma Energy Conservation'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.
Sinoma Energy Conservation Gross Margin % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Sinoma Energy Conservation's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sinoma Energy Conservation'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.
Sinoma Energy Conservation (SHSE:603126) has a Gross Margin % of 12.32% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Sinoma Energy Conservation and its competitors. This is 38% below median its historical median of 19.87. Over the past decade, Sinoma Energy Conservation's Gross Margin % has ranged from 12.23 to 26.81. According to the industry distribution chart, Sinoma Energy Conservation ranks #333 out of 407 companies in the Utilities - Independent Power Producers industry, placing it in the top 81.8%.
Is Sinoma Energy Conservation's Gross Margin % too high?
Sinoma Energy Conservation's current Gross Margin % of 12.32% is 38% below median its 10-year median of 19.87. Over the past 10 years, this metric has ranged from a low of 12.23 to a high of 26.81. The Utilities - Independent Power Producers industry median Gross Margin % is 31.35. Sinoma Energy Conservation's value of 12.32% is 60.7% below this industry median. Based on the distribution chart, Sinoma Energy Conservation ranks #333 out of 407 companies in the Utilities - Independent Power Producers industry, which is in the bottom quartile relative to peers. Overall, Sinoma Energy Conservation has a GF Score™ of 62/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Sinoma Energy Conservation's Gross Margin % compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, Sinoma Energy Conservation ranks #333 out of 407 companies for Gross Margin %. This places Sinoma Energy Conservation in the lower half of its industry. The industry median Gross Margin % is 31.35. Sinoma Energy Conservation's value of 12.32% is 60.7% below this benchmark. Historically, Sinoma Energy Conservation's own Gross Margin % has ranged from 12.23 to 26.81 over the past decade. While the company's 10-year median is 19.87 vs. the industry median of 31.35, Sinoma Energy Conservation 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 Utilities - Independent Power Producers company?
The median Gross Margin % among Utilities - Independent Power Producers companies is 31.35, based on 407 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. Sinoma Energy Conservation's current Gross Margin % of 12.32% is 60.7% 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 Sinoma Energy Conservation and its competitors. For the Utilities - Independent Power Producers industry, the median Gross Margin % is 31.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sinoma Energy Conservation's current Gross Margin % is 12.32%, which is 38% below median its own 10-year median of 19.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sinoma Energy Conservation stock overvalued right now?
Based on GuruFocus' analysis, Sinoma Energy Conservation (SHSE:603126) is currently considered Possible Value Trap. The stock's GF Value™ is ¥9.92, compared to a current price of ¥5.93 — trading 40.2% below its estimated fair value. The current Gross Margin % is 12.32%, which is 38% below median its 10-year median of 19.87 and 60.7% below the Utilities - Independent Power Producers industry median of 31.35. Sinoma Energy Conservation's overall GF Score™ is 62/100 with 7 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 Sinoma Energy Conservation (SHSE:603126), the current Gross Margin % is 12.32% 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 Sinoma Energy Conservation (SHSE:603126) Overvalued in 2026?
Based on GuruFocus' analysis, Sinoma Energy Conservation stock appears to be undervalued.
The current stock price of ¥5.93 is trading 40.2% below its estimated GF Value™ of ¥9.92.
GuruFocus considers Sinoma Energy Conservation to be Possible Value Trap.
Key valuation signals for SHSE:603126:
Gross Margin %: 12.32% (38% below median its 10-year median of 19.87)
GF Value™: ¥9.92 vs. price of ¥5.93 (40.2% below fair value)
Industry Position: 60.7% below the Utilities - Independent Power Producers median (#333 of 407)
No single metric tells the full story. See the SHSE:603126 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sinoma Energy Conservation Ltd is engaged in energy conservation and waste reduction. Its business scope mainly includes investment of waste heat power generation project (BOT); engineering technology development, consultancy and design of waste heat power generation (EP); turn-key contract (EPC); supply of clean development mechanism (CDM); development proposals and technology consultancy.
62GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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