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Hexing Electrical CoSHSE:603556 -0.48%78 Gross Margin % is 32.87% as of Mar. 2026, which is 20% below its 10-year median of 41.33. GuruFocus rates SHSE:603556 with a GF Score™ of 78/100 and a GF Value™ of ¥39.41 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 2,999 Industrial Products companies, Hexing Electrical Co ranks better than 72.36% on this metric.
The historical rank and industry rank for Hexing Electrical Co's Gross Margin % or its related term are showing as below:
SHSE:603556'
s Gross Margin % Range Over the Past 10 Years
Min: 32.76 Med: 41.33 Max: 48.08
Current: 36.5
During the past 13 years, the highestGross Margin % of Hexing Electrical Co was 48.08%. The lowest was 32.76%. And the median was 41.33%.
SHSE:603556's Gross Margin % is ranked better than 72.36% of 2999
companies
in the Industrial Products industry
Industry Median: 26.81
vs SHSE:603556: 36.50
Hexing Electrical Co had a gross margin of 32.87% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Hexing Electrical Co was 1.70% per year.
Hexing Electrical Co (SHSE:603556) 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
Hexing Electrical Co had a gross margin of 32.87% 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.
Hexing Electrical Co Gross Margin % Related Terms
Hexing Electrical Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Hexing Electrical 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.
For the Electrical Equipment & Parts subindustry, Hexing Electrical 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.
Hexing Electrical Co Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Hexing Electrical Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hexing Electrical 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.
Hexing Electrical Co (SHSE:603556) has a Gross Margin % of 32.87% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Hexing Electrical Co and its competitors. This is 20% below median its historical median of 41.33. Over the past decade, Hexing Electrical Co's Gross Margin % has ranged from 32.76 to 48.08. According to the industry distribution chart, Hexing Electrical Co ranks #829 out of 2999 companies in the Industrial Products industry, placing it in the top 27.6%.
Is Hexing Electrical Co's Gross Margin % too high?
Hexing Electrical Co's current Gross Margin % of 32.87% is 20% below median its 10-year median of 41.33. Over the past 10 years, this metric has ranged from a low of 32.76 to a high of 48.08. The Industrial Products industry median Gross Margin % is 26.81. Hexing Electrical Co's value of 32.87% is 22.6% above this industry median. Based on the distribution chart, Hexing Electrical Co ranks #829 out of 2999 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Hexing Electrical Co has a GF Score™ of 78/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hexing Electrical Co's Gross Margin % compare to VRT and BE?
According to the Industrial Products industry distribution chart, Hexing Electrical Co ranks #829 out of 2999 companies for Gross Margin %. This puts Hexing Electrical Co in the upper half of its industry. The industry median Gross Margin % is 26.81. Hexing Electrical Co's value of 32.87% is 22.6% above this benchmark. Historically, Hexing Electrical Co's own Gross Margin % has ranged from 32.76 to 48.08 over the past decade. While the company's 10-year median is 41.33 vs. the industry median of 26.81, Hexing Electrical 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.81, based on 2,999 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. Hexing Electrical Co's current Gross Margin % of 32.87% is 22.6% 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 Hexing Electrical Co and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hexing Electrical Co's current Gross Margin % is 32.87%, which is 20% below median its own 10-year median of 41.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hexing Electrical Co stock overvalued right now?
Based on GuruFocus' analysis, Hexing Electrical Co (SHSE:603556) is currently considered Significantly Undervalued. The stock's GF Value™ is ¥39.41, compared to a current price of ¥26.86 — trading 31.8% below its estimated fair value. The current Gross Margin % is 32.87%, which is 20% below median its 10-year median of 41.33 and 22.6% above the Industrial Products industry median of 26.81. Hexing Electrical Co's overall GF Score™ is 78/100 with 1 warning sign 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 Hexing Electrical Co (SHSE:603556), the current Gross Margin % is 32.87% 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 Hexing Electrical Co (SHSE:603556) Overvalued in 2026?
Based on GuruFocus' analysis, Hexing Electrical Co stock appears to be undervalued.
The current stock price of ¥26.86 is trading 31.8% below its estimated GF Value™ of ¥39.41.
GuruFocus considers Hexing Electrical Co to be Significantly Undervalued.
Key valuation signals for SHSE:603556:
Gross Margin %: 32.87% (20% below median its 10-year median of 41.33)
GF Value™: ¥39.41 vs. price of ¥26.86 (31.8% below fair value)
Industry Position: 22.6% above the Industrial Products median (#829 of 2999)
No single metric tells the full story. See the SHSE:603556 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hexing Electrical Co Ltd is manufacturers and solution providers in smart metering products and systems. The company offers a product such as Gateway Communication Device, Smart Cluster Metering Cabinet, ANSI Meter Test Equipment, Conventional Meter Matrix and Smart Meter Matrix. Geographically operates through China.
78GF Score
Get the complete analysis for SHSE:603556
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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