Shanghai Baolong AutomotiveSHSE:603197 -3.86%76 Gross Margin % is 22.09% as of Mar. 2026, which is 21% below its 10-year median of 28.12. GuruFocus rates SHSE:603197 with a GF Score™ of 76/100 and a GF Value™ of ¥54.06 (Possible Value Trap). The stock has 8 warning signs investors should review. Among 1,307 Vehicles & Parts companies, Shanghai Baolong Automotive ranks better than 52.95% on this metric.
SHSE:603197's Gross Margin % is ranked better than 52.95% of 1307
companies
in the Vehicles & Parts industry
Industry Median: 19.87
vs SHSE:603197: 20.88
Shanghai Baolong Automotive had a gross margin of 22.09% for the quarter that ended in Mar. 2026 => Competition eroding margins
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
Shanghai Baolong Automotive had a gross margin of 22.09% 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.
Shanghai Baolong Automotive Gross Margin % Related Terms
Shanghai Baolong Automotive 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.
SHSE:603197 vs ORLY, AZO: Gross Margin % Comparison
For the Auto Parts subindustry, Shanghai Baolong Automotive'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.
Shanghai Baolong Automotive Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Shanghai Baolong Automotive's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Shanghai Baolong Automotive'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.
Shanghai Baolong Automotive (SHSE:603197) has a Gross Margin % of 22.09% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Shanghai Baolong Automotive and its competitors. This is 21% below median its historical median of 28.12. Over the past decade, Shanghai Baolong Automotive's Gross Margin % has ranged from 20.88 to 35.36. According to the industry distribution chart, Shanghai Baolong Automotive ranks #615 out of 1307 companies in the Vehicles & Parts industry, placing it in the top 47.1%.
Is Shanghai Baolong Automotive's Gross Margin % too high?
Shanghai Baolong Automotive's current Gross Margin % of 22.09% is 21% below median its 10-year median of 28.12. Over the past 10 years, this metric has ranged from a low of 20.88 to a high of 35.36. The Vehicles & Parts industry median Gross Margin % is 19.87. Shanghai Baolong Automotive's value of 22.09% is 11.2% above this industry median. Based on the distribution chart, Shanghai Baolong Automotive ranks #615 out of 1307 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Shanghai Baolong Automotive has a GF Score™ of 76/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Shanghai Baolong Automotive's Gross Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Shanghai Baolong Automotive ranks #615 out of 1307 companies for Gross Margin %. This puts Shanghai Baolong Automotive in the upper half of its industry. The industry median Gross Margin % is 19.87. Shanghai Baolong Automotive's value of 22.09% is 11.2% above this benchmark. Historically, Shanghai Baolong Automotive's own Gross Margin % has ranged from 20.88 to 35.36 over the past decade. While the company's 10-year median is 28.12 vs. the industry median of 19.87, Shanghai Baolong Automotive 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 19.87, 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. Shanghai Baolong Automotive's current Gross Margin % of 22.09% is 11.2% 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 Shanghai Baolong Automotive and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shanghai Baolong Automotive's current Gross Margin % is 22.09%, which is 21% below median its own 10-year median of 28.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanghai Baolong Automotive stock overvalued right now?
Based on GuruFocus' analysis, Shanghai Baolong Automotive (SHSE:603197) is currently considered Possible Value Trap. The stock's GF Value™ is ¥54.06, compared to a current price of ¥26.93 — trading 50.2% below its estimated fair value. The current Gross Margin % is 22.09%, which is 21% below median its 10-year median of 28.12 and 11.2% above the Vehicles & Parts industry median of 19.87. Shanghai Baolong Automotive's overall GF Score™ is 76/100 with 8 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 Shanghai Baolong Automotive (SHSE:603197), the current Gross Margin % is 22.09% 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 Shanghai Baolong Automotive (SHSE:603197) Overvalued in 2026?
Based on GuruFocus' analysis, Shanghai Baolong Automotive stock appears to be undervalued.
The current stock price of ¥26.93 is trading 50.2% below its estimated GF Value™ of ¥54.06.
GuruFocus considers Shanghai Baolong Automotive to be Possible Value Trap.
Key valuation signals for SHSE:603197:
Gross Margin %: 22.09% (21% below median its 10-year median of 28.12)
GF Value™: ¥54.06 vs. price of ¥26.93 (50.2% below fair value)
Industry Position: 11.2% above the Vehicles & Parts median (#615 of 1307)
No single metric tells the full story. See the SHSE:603197 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shanghai Baolong Automotive Corp is a Chinese manufacturer of automotive parts and components. Its products include tire valves and accessories, wheel balancing weights, performance exhaust products, automotive pressure sensors, and hydro-forming automotive body parts, among others. The company sells its products in China and various other countries.
76GF Score
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