SHSE:603158's Gross Margin % is ranked worse than 51.03% of 1307
companies
in the Vehicles & Parts industry
Industry Median: 19.83
vs SHSE:603158: 19.55
Changzhou Tenglong Auto Parts Co had a gross margin of 22.74% for the quarter that ended in Mar. 2026 => Competition eroding margins
Changzhou Tenglong Auto Parts Co (SHSE:603158) 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
Changzhou Tenglong Auto Parts Co had a gross margin of 22.74% for the quarter that ended in Mar. 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.
Changzhou Tenglong Auto Parts Co Gross Margin % Related Terms
Changzhou Tenglong Auto Parts 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.
Changzhou Tenglong Auto Parts Co Gross Margin % Chart
SHSE:603158 vs ORLY, AZO: Gross Margin % Comparison
For the Auto Parts subindustry, Changzhou Tenglong Auto Parts 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.
Changzhou Tenglong Auto Parts Co Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Changzhou Tenglong Auto Parts Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Changzhou Tenglong Auto Parts 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.
Changzhou Tenglong Auto Parts Co (SHSE:603158) has a Gross Margin % of 22.74% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Changzhou Tenglong Auto Parts Co and its competitors. This is 15% below median its historical median of 26.87. Over the past decade, Changzhou Tenglong Auto Parts Co's Gross Margin % has ranged from 18.80 to 35.07. According to the industry distribution chart, Changzhou Tenglong Auto Parts Co ranks #667 out of 1307 companies in the Vehicles & Parts industry, placing it in the top 51%.
Is Changzhou Tenglong Auto Parts Co's Gross Margin % too high?
Changzhou Tenglong Auto Parts Co's current Gross Margin % of 22.74% is 15% below median its 10-year median of 26.87. Over the past 10 years, this metric has ranged from a low of 18.80 to a high of 35.07. The Vehicles & Parts industry median Gross Margin % is 19.83. Changzhou Tenglong Auto Parts Co's value of 22.74% is 14.7% above this industry median. Based on the distribution chart, Changzhou Tenglong Auto Parts Co ranks #667 out of 1307 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Changzhou Tenglong Auto Parts Co has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Changzhou Tenglong Auto Parts Co's Gross Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Changzhou Tenglong Auto Parts Co ranks #667 out of 1307 companies for Gross Margin %. This places Changzhou Tenglong Auto Parts Co in the lower half of its industry. The industry median Gross Margin % is 19.83. Changzhou Tenglong Auto Parts Co's value of 22.74% is 14.7% above this benchmark. Historically, Changzhou Tenglong Auto Parts Co's own Gross Margin % has ranged from 18.80 to 35.07 over the past decade. While the company's 10-year median is 26.87 vs. the industry median of 19.83, Changzhou Tenglong Auto Parts 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 Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.83, based on 1,307 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. Changzhou Tenglong Auto Parts Co's current Gross Margin % of 22.74% is 14.7% 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 Changzhou Tenglong Auto Parts Co and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Changzhou Tenglong Auto Parts Co's current Gross Margin % is 22.74%, which is 15% below median its own 10-year median of 26.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Changzhou Tenglong Auto Parts Co stock overvalued right now?
Based on GuruFocus' analysis, Changzhou Tenglong Auto Parts Co (SHSE:603158) is currently considered Fairly Valued. The stock's GF Value™ is ¥11.29, compared to a current price of ¥11.32 — trading 0.3% above its estimated fair value. The current Gross Margin % is 22.74%, which is 15% below median its 10-year median of 26.87 and 14.7% above the Vehicles & Parts industry median of 19.83. Changzhou Tenglong Auto Parts Co's overall GF Score™ is 79/100 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 Changzhou Tenglong Auto Parts Co (SHSE:603158), the current Gross Margin % is 22.74% 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 Changzhou Tenglong Auto Parts Co (SHSE:603158) Overvalued in 2026?
Based on GuruFocus' analysis, Changzhou Tenglong Auto Parts Co stock appears to be overvalued.
The current stock price of ¥11.32 is trading 0.3% above its estimated GF Value™ of ¥11.29.
GuruFocus considers Changzhou Tenglong Auto Parts Co to be Fairly Valued.
Key valuation signals for SHSE:603158:
Gross Margin %: 22.74% (15% below median its 10-year median of 26.87)
GF Value™: ¥11.29 vs. price of ¥11.32 (0.3% above fair value)
Industry Position: 14.7% above the Vehicles & Parts median (#667 of 1307)
No single metric tells the full story. See the SHSE:603158 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Changzhou Tenglong Auto Parts Co Business Description
Changzhou Tenglong Auto Parts Co Ltd provides services for auto parts. It is engaged in developing and manufacturing auto heat exchange pipes, especially auto air-conditioning pipes and accessories. It also has explored its business in the energy-conservative and environmentally protective auto parts field, including light alloy materials, EGR products, auto sensors. It offers a variety of automotive air conditioning pipes, automotive heat exchange systems connecting hard pipes and automotive heat exchange systems accessories.
79GF Score
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