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Guangdong Tianan New Material Co (SHSE:603725) 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
Guangdong Tianan New Material Co had a gross margin of 21.06% 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.
Guangdong Tianan New Material Co Gross Margin % Related Terms
Guangdong Tianan New Material 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.
Guangdong Tianan New Material Co Gross Margin % Chart
For the Chemicals subindustry, Guangdong Tianan New Material 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.
Guangdong Tianan New Material Co Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Guangdong Tianan New Material Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Guangdong Tianan New Material 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.
Guangdong Tianan New Material Co (SHSE:603725) has a Gross Margin % of 21.06% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Guangdong Tianan New Material Co and its competitors. This is near median its historical median of 21.59. Over the past decade, Guangdong Tianan New Material Co's Gross Margin % has ranged from 16.66 to 24.17. According to the industry distribution chart, Guangdong Tianan New Material Co ranks #837 out of 1560 companies in the Chemicals industry, placing it in the top 53.7%.
Is Guangdong Tianan New Material Co's Gross Margin % too high?
Guangdong Tianan New Material Co's current Gross Margin % of 21.06% is near median its 10-year median of 21.59. Over the past 10 years, this metric has ranged from a low of 16.66 to a high of 24.17. The Chemicals industry median Gross Margin % is 23.57. Guangdong Tianan New Material Co's value of 21.06% is 10.6% below this industry median. Based on the distribution chart, Guangdong Tianan New Material Co ranks #837 out of 1560 companies in the Chemicals industry, which is below the industry midpoint. Overall, Guangdong Tianan New Material Co has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Guangdong Tianan New Material Co's Gross Margin % compare to DOW?
According to the Chemicals industry distribution chart, Guangdong Tianan New Material Co ranks #837 out of 1560 companies for Gross Margin %. This places Guangdong Tianan New Material Co in the lower half of its industry. The industry median Gross Margin % is 23.57. Guangdong Tianan New Material Co's value of 21.06% is 10.6% below this benchmark. Historically, Guangdong Tianan New Material Co's own Gross Margin % has ranged from 16.66 to 24.17 over the past decade. While the company's 10-year median is 21.59 vs. the industry median of 23.57, Guangdong Tianan New Material 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 Chemicals company?
The median Gross Margin % among Chemicals companies is 23.57, based on 1,560 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. Guangdong Tianan New Material Co's current Gross Margin % of 21.06% is 10.6% 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 Guangdong Tianan New Material Co and its competitors. For the Chemicals industry, the median Gross Margin % is 23.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Guangdong Tianan New Material Co's current Gross Margin % is 21.06%, which is near median its own 10-year median of 21.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Guangdong Tianan New Material Co stock overvalued right now?
Based on GuruFocus' analysis, Guangdong Tianan New Material Co (SHSE:603725) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥7.13, compared to a current price of ¥10.14 — trading 42.2% above its estimated fair value. The current Gross Margin % is 21.06%, which is near median its 10-year median of 21.59 and 10.6% below the Chemicals industry median of 23.57. Guangdong Tianan New Material Co's overall GF Score™ is 69/100 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 Guangdong Tianan New Material Co (SHSE:603725), the current Gross Margin % is 21.06% 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 Guangdong Tianan New Material Co (SHSE:603725) Overvalued in 2026?
Based on GuruFocus' analysis, Guangdong Tianan New Material Co stock appears to be overvalued.
The current stock price of ¥10.14 is trading 42.2% above its estimated GF Value™ of ¥7.13.
GuruFocus considers Guangdong Tianan New Material Co to be Significantly Overvalued.
Key valuation signals for SHSE:603725:
Gross Margin %: 21.06% (near median its 10-year median of 21.59)
GF Value™: ¥7.13 vs. price of ¥10.14 (42.2% above fair value)
Industry Position: 10.6% below the Chemicals median (#837 of 1560)
No single metric tells the full story. See the SHSE:603725 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Guangdong Tianan New Material Co Ltd is a manufacturer of environmentally friendly high-end decorative materials and automotive interior materials in China. Its primary products include home decoration finishes, automotive interior finishes, films, and artificial leather products, such as polyvinyl chloride (PVC), polypropylene (PP), and thermoplastic polyolefin (TPO), and other polymer surface materials.
69GF Score
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