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What is Hangzhou Freely Communication Co Gross Margin %?
Hangzhou Freely Communication CoSHSE:603602 +1.21%64 Gross Margin % is 16.02% as of Mar. 2026, which is 9% above its 10-year median of 14.76. GuruFocus rates SHSE:603602 with a GF Score™ of 64/100 and a GF Value™ of ¥17.50 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 342 Telecommunication Services companies, Hangzhou Freely Communication Co ranks worse than 91.52% on this metric.
SHSE:603602's Gross Margin % is ranked worse than 91.52% of 342
companies
in the Telecommunication Services industry
Industry Median: 51.545
vs SHSE:603602: 14.71
Hangzhou Freely Communication Co had a gross margin of 16.02% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Hangzhou Freely Communication Co (SHSE:603602) 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
Hangzhou Freely Communication Co had a gross margin of 16.02% 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.
Hangzhou Freely Communication Co Gross Margin % Related Terms
Hangzhou Freely Communication 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.
Hangzhou Freely Communication Co Gross Margin % Chart
SHSE:603602 vs VZ, TMUS, T: Gross Margin % Comparison
For the Telecom Services subindustry, Hangzhou Freely Communication 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.
Hangzhou Freely Communication Co Gross Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Hangzhou Freely Communication Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hangzhou Freely Communication 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.
Hangzhou Freely Communication Co (SHSE:603602) has a Gross Margin % of 16.02% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Hangzhou Freely Communication Co and its competitors. This is near median its historical median of 14.76. Over the past decade, Hangzhou Freely Communication Co's Gross Margin % has ranged from 11.28 to 20.60. According to the industry distribution chart, Hangzhou Freely Communication Co ranks #313 out of 342 companies in the Telecommunication Services industry, placing it in the top 91.5%.
Is Hangzhou Freely Communication Co's Gross Margin % too high?
Hangzhou Freely Communication Co's current Gross Margin % of 16.02% is near median its 10-year median of 14.76. Over the past 10 years, this metric has ranged from a low of 11.28 to a high of 20.60. The Telecommunication Services industry median Gross Margin % is 51.55. Hangzhou Freely Communication Co's value of 16.02% is 68.9% below this industry median. Based on the distribution chart, Hangzhou Freely Communication Co ranks #313 out of 342 companies in the Telecommunication Services industry, which is in the bottom quartile relative to peers. Overall, Hangzhou Freely Communication 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 Hangzhou Freely Communication Co's Gross Margin % compare to VZ and TMUS?
According to the Telecommunication Services industry distribution chart, Hangzhou Freely Communication Co ranks #313 out of 342 companies for Gross Margin %. This places Hangzhou Freely Communication Co in the lower half of its industry. The industry median Gross Margin % is 51.55. Hangzhou Freely Communication Co's value of 16.02% is 68.9% below this benchmark. Historically, Hangzhou Freely Communication Co's own Gross Margin % has ranged from 11.28 to 20.60 over the past decade. While the company's 10-year median is 14.76 vs. the industry median of 51.55, Hangzhou Freely Communication 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 Telecommunication Services company?
The median Gross Margin % among Telecommunication Services companies is 51.55, based on 342 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. Hangzhou Freely Communication Co's current Gross Margin % of 16.02% is 68.9% 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 Hangzhou Freely Communication Co and its competitors. For the Telecommunication Services industry, the median Gross Margin % is 51.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hangzhou Freely Communication Co's current Gross Margin % is 16.02%, which is near median its own 10-year median of 14.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hangzhou Freely Communication Co stock overvalued right now?
Based on GuruFocus' analysis, Hangzhou Freely Communication Co (SHSE:603602) is currently considered Possible Value Trap. The stock's GF Value™ is ¥17.50, compared to a current price of ¥11.74 — trading 32.9% below its estimated fair value. The current Gross Margin % is 16.02%, which is near median its 10-year median of 14.76 and 68.9% below the Telecommunication Services industry median of 51.55. Hangzhou Freely Communication Co's overall GF Score™ is 64/100 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 Hangzhou Freely Communication Co (SHSE:603602), the current Gross Margin % is 16.02% 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 Hangzhou Freely Communication Co (SHSE:603602) Overvalued in 2026?
Based on GuruFocus' analysis, Hangzhou Freely Communication Co stock appears to be undervalued.
The current stock price of ¥11.74 is trading 32.9% below its estimated GF Value™ of ¥17.50.
GuruFocus considers Hangzhou Freely Communication Co to be Possible Value Trap.
Key valuation signals for SHSE:603602:
Gross Margin %: 16.02% (near median its 10-year median of 14.76)
GF Value™: ¥17.50 vs. price of ¥11.74 (32.9% below fair value)
Industry Position: 68.9% below the Telecommunication Services median (#313 of 342)
No single metric tells the full story. See the SHSE:603602 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hangzhou Freely Communication Co Ltd is a communication network technology service provider. It is mainly engaged in communication extension network construction, communication network generation, and communication network optimization. The company's service portfolio consists of base station installation engineering services, indoor distribution system technical services, integrated access technology services, and network generation services.
64GF Score
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