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Bomesc Offshore Engineering Co (SHSE:603727) 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
Bomesc Offshore Engineering Co had a gross margin of 7.72% for the quarter that ended in Jun. 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.
Bomesc Offshore Engineering Co Gross Margin % Related Terms
Bomesc Offshore Engineering 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.
Bomesc Offshore Engineering Co Gross Margin % Chart
SHSE:603727 vs SLB, BKR, FTI: Gross Margin % Comparison
For the Oil & Gas Equipment & Services subindustry, Bomesc Offshore Engineering 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.
Bomesc Offshore Engineering Co Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Bomesc Offshore Engineering Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Bomesc Offshore Engineering 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.
Bomesc Offshore Engineering Co (SHSE:603727) has a Gross Margin % of 7.72% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Bomesc Offshore Engineering Co and its competitors. This is 41% below median its historical median of 13.05. Over the past decade, Bomesc Offshore Engineering Co's Gross Margin % has ranged from 8.47 to 24.74. According to the industry distribution chart, Bomesc Offshore Engineering Co ranks #562 out of 870 companies in the Oil & Gas industry, placing it in the top 64.6%.
Is Bomesc Offshore Engineering Co's Gross Margin % too high?
Bomesc Offshore Engineering Co's current Gross Margin % of 7.72% is 41% below median its 10-year median of 13.05. Over the past 10 years, this metric has ranged from a low of 8.47 to a high of 24.74. The Oil & Gas industry median Gross Margin % is 25.95. Bomesc Offshore Engineering Co's value of 7.72% is 70.2% below this industry median. Based on the distribution chart, Bomesc Offshore Engineering Co ranks #562 out of 870 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Bomesc Offshore Engineering Co has a GF Score™ of 66/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Bomesc Offshore Engineering Co's Gross Margin % compare to SLB and BKR?
According to the Oil & Gas industry distribution chart, Bomesc Offshore Engineering Co ranks #562 out of 870 companies for Gross Margin %. This places Bomesc Offshore Engineering Co in the lower half of its industry. The industry median Gross Margin % is 25.95. Bomesc Offshore Engineering Co's value of 7.72% is 70.2% below this benchmark. Historically, Bomesc Offshore Engineering Co's own Gross Margin % has ranged from 8.47 to 24.74 over the past decade. While the company's 10-year median is 13.05 vs. the industry median of 25.95, Bomesc Offshore Engineering 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 an Oil & Gas company?
The median Gross Margin % among Oil & Gas companies is 25.95, based on 870 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. Bomesc Offshore Engineering Co's current Gross Margin % of 7.72% is 70.2% 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 Bomesc Offshore Engineering Co and its competitors. For the Oil & Gas industry, the median Gross Margin % is 25.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bomesc Offshore Engineering Co's current Gross Margin % is 7.72%, which is 41% below median its own 10-year median of 13.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bomesc Offshore Engineering Co stock overvalued right now?
Based on GuruFocus' analysis, Bomesc Offshore Engineering Co (SHSE:603727) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥9.64, compared to a current price of ¥18.00 — trading 86.7% above its estimated fair value. The current Gross Margin % is 7.72%, which is 41% below median its 10-year median of 13.05 and 70.2% below the Oil & Gas industry median of 25.95. Bomesc Offshore Engineering Co's overall GF Score™ is 66/100 with 6 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 Bomesc Offshore Engineering Co (SHSE:603727), the current Gross Margin % is 7.72% as of Jun. 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 Bomesc Offshore Engineering Co (SHSE:603727) Overvalued in 2026?
Based on GuruFocus' analysis, Bomesc Offshore Engineering Co stock appears to be overvalued.
The current stock price of ¥18.00 is trading 86.7% above its estimated GF Value™ of ¥9.64.
GuruFocus considers Bomesc Offshore Engineering Co to be Significantly Overvalued.
Key valuation signals for SHSE:603727:
Gross Margin %: 7.72% (41% below median its 10-year median of 13.05)
GF Value™: ¥9.64 vs. price of ¥18.00 (86.7% above fair value)
Industry Position: 70.2% below the Oil & Gas median (#562 of 870)
No single metric tells the full story. See the SHSE:603727 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bomesc Offshore Engineering Co Ltd is an engineering, procurement and construction company. The company targets domestic and international markets and focuses on high-end customers in marine oil and gas development, mining, and natural gas liquefaction industries. Its main products are divided into marine oil and gas development modules and mining models. In addition, the company provides energy resources facilities for at home and abroad in the fields of offshore oil and gas development, mining and natural gas liquefaction.
66GF Score
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