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Wencan Group CoSHSE:603348 +0.77%64 Gross Margin % is 7.39% as of Mar. 2026, which is 65% below its 10-year median of 21.03. GuruFocus rates SHSE:603348 with a GF Score™ of 64/100 and a GF Value™ of ¥24.82 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 1,307 Vehicles & Parts companies, Wencan Group Co ranks worse than 88.45% on this metric.
Wencan Group Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -14.1%.
The historical rank and industry rank for Wencan Group Co's Gross Margin % or its related term are showing as below:
SHSE:603348'
s Gross Margin % Range Over the Past 10 Years
Min: 9.46 Med: 21.03 Max: 29.78
Current: 9.46
During the past 13 years, the highestGross Margin % of Wencan Group Co was 29.78%. The lowest was 9.46%. And the median was 21.03%.
SHSE:603348's Gross Margin % is ranked worse than 88.45% of 1307
companies
in the Vehicles & Parts industry
Industry Median: 19.87
vs SHSE:603348: 9.46
Wencan Group Co had a gross margin of 7.39% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Wencan Group Co was -14.10% per year.
Wencan Group Co (SHSE:603348) 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
Wencan Group Co had a gross margin of 7.39% 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.
Wencan Group Co Gross Margin % Related Terms
Wencan Group Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Wencan Group Co's Gross Margin % can be seen below:
* 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:603348 vs ORLY, AZO: Gross Margin % Comparison
For the Auto Parts subindustry, Wencan 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.
Wencan Group Co Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Wencan Group Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Wencan 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.
Wencan Group Co (SHSE:603348) has a Gross Margin % of 7.39% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Wencan Group Co and its competitors. This is 65% below median its historical median of 21.03. Over the past decade, Wencan Group Co's Gross Margin % has ranged from 9.46 to 29.78. According to the industry distribution chart, Wencan Group Co ranks #1156 out of 1307 companies in the Vehicles & Parts industry, placing it in the top 88.4%.
Is Wencan Group Co's Gross Margin % too high?
Wencan Group Co's current Gross Margin % of 7.39% is 65% below median its 10-year median of 21.03. Over the past 10 years, this metric has ranged from a low of 9.46 to a high of 29.78. The Vehicles & Parts industry median Gross Margin % is 19.87. Wencan Group Co's value of 7.39% is 62.8% below this industry median. Based on the distribution chart, Wencan Group Co ranks #1156 out of 1307 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, Wencan Group Co has a GF Score™ of 64/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Wencan Group Co's Gross Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Wencan Group Co ranks #1156 out of 1307 companies for Gross Margin %. This places Wencan Group Co in the lower half of its industry. The industry median Gross Margin % is 19.87. Wencan Group Co's value of 7.39% is 62.8% below this benchmark. Historically, Wencan Group Co's own Gross Margin % has ranged from 9.46 to 29.78 over the past decade. While the company's 10-year median is 21.03 vs. the industry median of 19.87, Wencan 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 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. Wencan Group Co's current Gross Margin % of 7.39% is 62.8% 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 Wencan Group Co 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. Wencan Group Co's current Gross Margin % is 7.39%, which is 65% below median its own 10-year median of 21.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Wencan Group Co stock overvalued right now?
Based on GuruFocus' analysis, Wencan Group Co (SHSE:603348) is currently considered Possible Value Trap. The stock's GF Value™ is ¥24.82, compared to a current price of ¥13.12 — trading 47.1% below its estimated fair value. The current Gross Margin % is 7.39%, which is 65% below median its 10-year median of 21.03 and 62.8% below the Vehicles & Parts industry median of 19.87. Wencan Group Co's overall GF Score™ is 64/100 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 Wencan Group Co (SHSE:603348), the current Gross Margin % is 7.39% 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 Wencan Group Co (SHSE:603348) Overvalued in 2026?
Based on GuruFocus' analysis, Wencan Group Co stock appears to be undervalued.
The current stock price of ¥13.12 is trading 47.1% below its estimated GF Value™ of ¥24.82.
GuruFocus considers Wencan Group Co to be Possible Value Trap.
Key valuation signals for SHSE:603348:
Gross Margin %: 7.39% (65% below median its 10-year median of 21.03)
GF Value™: ¥24.82 vs. price of ¥13.12 (47.1% below fair value)
Industry Position: 62.8% below the Vehicles & Parts median (#1156 of 1307)
No single metric tells the full story. See the SHSE:603348 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Wencan Group Co Ltd is engaged in the research, development, production and sales of automobile aluminum alloy precision die castings. The products are mainly used in engine systems, gearbox systems, and chassis systems in mid- to high-end automobiles, brake system, body structure parts and other auto parts.
64GF 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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