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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
EmbedWay Technologies (Shanghai) had a gross margin of 30.46% 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.
EmbedWay Technologies (Shanghai) Gross Margin % Related Terms
EmbedWay Technologies (Shanghai) 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:603496 vs CSCO, MSI, HPE: Gross Margin % Comparison
For the Communication Equipment subindustry, EmbedWay Technologies (Shanghai)'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.
EmbedWay Technologies (Shanghai) Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, EmbedWay Technologies (Shanghai)'s Gross Margin % distribution charts can be found below:
* The bar in red indicates where EmbedWay Technologies (Shanghai)'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.
EmbedWay Technologies (Shanghai) (SHSE:603496) has a Gross Margin % of 30.46% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on EmbedWay Technologies (Shanghai) and its competitors. This is 31% below median its historical median of 44.41. Over the past decade, EmbedWay Technologies (Shanghai)'s Gross Margin % has ranged from 28.56 to 56.20. According to the industry distribution chart, EmbedWay Technologies (Shanghai) ranks #1048 out of 2453 companies in the Hardware industry, placing it in the top 42.7%.
Is EmbedWay Technologies (Shanghai)'s Gross Margin % too high?
EmbedWay Technologies (Shanghai)'s current Gross Margin % of 30.46% is 31% below median its 10-year median of 44.41. Over the past 10 years, this metric has ranged from a low of 28.56 to a high of 56.20. The Hardware industry median Gross Margin % is 24.49. EmbedWay Technologies (Shanghai)'s value of 30.46% is 24.4% above this industry median. Based on the distribution chart, EmbedWay Technologies (Shanghai) ranks #1048 out of 2453 companies in the Hardware industry, which is above the industry midpoint. Overall, EmbedWay Technologies (Shanghai) has a GF Score™ of 80/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does EmbedWay Technologies (Shanghai)'s Gross Margin % compare to CSCO and MSI?
According to the Hardware industry distribution chart, EmbedWay Technologies (Shanghai) ranks #1048 out of 2453 companies for Gross Margin %. This puts EmbedWay Technologies (Shanghai) in the upper half of its industry. The industry median Gross Margin % is 24.49. EmbedWay Technologies (Shanghai)'s value of 30.46% is 24.4% above this benchmark. Historically, EmbedWay Technologies (Shanghai)'s own Gross Margin % has ranged from 28.56 to 56.20 over the past decade. While the company's 10-year median is 44.41 vs. the industry median of 24.49, EmbedWay Technologies (Shanghai) 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 Hardware company?
The median Gross Margin % among Hardware companies is 24.49, based on 2,453 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. EmbedWay Technologies (Shanghai)'s current Gross Margin % of 30.46% is 24.4% 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 EmbedWay Technologies (Shanghai) and its competitors. For the Hardware industry, the median Gross Margin % is 24.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. EmbedWay Technologies (Shanghai)'s current Gross Margin % is 30.46%, which is 31% below median its own 10-year median of 44.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is EmbedWay Technologies (Shanghai) stock overvalued right now?
Based on GuruFocus' analysis, EmbedWay Technologies (Shanghai) (SHSE:603496) is currently considered Significantly Undervalued. The stock's GF Value™ is ¥37.99, compared to a current price of ¥25.48 — trading 32.9% below its estimated fair value. The current Gross Margin % is 30.46%, which is 31% below median its 10-year median of 44.41 and 24.4% above the Hardware industry median of 24.49. EmbedWay Technologies (Shanghai)'s overall GF Score™ is 80/100 with 3 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 EmbedWay Technologies (Shanghai) (SHSE:603496), the current Gross Margin % is 30.46% 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 EmbedWay Technologies (Shanghai) (SHSE:603496) Overvalued in 2026?
Based on GuruFocus' analysis, EmbedWay Technologies (Shanghai) stock appears to be undervalued.
The current stock price of ¥25.48 is trading 32.9% below its estimated GF Value™ of ¥37.99.
GuruFocus considers EmbedWay Technologies (Shanghai) to be Significantly Undervalued.
Key valuation signals for SHSE:603496:
Gross Margin %: 30.46% (31% below median its 10-year median of 44.41)
GF Value™: ¥37.99 vs. price of ¥25.48 (32.9% below fair value)
Industry Position: 24.4% above the Hardware median (#1048 of 2453)
No single metric tells the full story. See the SHSE:603496 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
EmbedWay Technologies (Shanghai) Business Description
EmbedWay Technologies (Shanghai) Corp is a supplier of DPI front-end applications and standard platforms. It provides products and solutions to various applications, such as telecommunications value-added services, internet safety, network and signaling monitoring, and communication equipment producing, among others. The products of the company are blade platform, standalone device, acceleration card, white box switches, converged computing, media processing, ATCA blade, and others.
80GF Score
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