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Xiamen Solex High-Tech Industries Co (SHSE:603992) 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
Xiamen Solex High-Tech Industries Co had a gross margin of 32.37% 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.
Xiamen Solex High-Tech Industries Co Gross Margin % Related Terms
Xiamen Solex High-Tech Industries 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.
Xiamen Solex High-Tech Industries Co Gross Margin % Chart
SHSE:603992 vs TT, JCI, CARR: Gross Margin % Comparison
For the Building Products & Equipment subindustry, Xiamen Solex High-Tech Industries 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.
Xiamen Solex High-Tech Industries Co Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Xiamen Solex High-Tech Industries Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Xiamen Solex High-Tech Industries 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.
Xiamen Solex High-Tech Industries Co (SHSE:603992) has a Gross Margin % of 32.37% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Xiamen Solex High-Tech Industries Co and its competitors. This is near median its historical median of 33.28. Over the past decade, Xiamen Solex High-Tech Industries Co's Gross Margin % has ranged from 29.54 to 35.37. According to the industry distribution chart, Xiamen Solex High-Tech Industries Co ranks #464 out of 1725 companies in the Construction industry, placing it in the top 26.9%.
Is Xiamen Solex High-Tech Industries Co's Gross Margin % too high?
Xiamen Solex High-Tech Industries Co's current Gross Margin % of 32.37% is near median its 10-year median of 33.28. Over the past 10 years, this metric has ranged from a low of 29.54 to a high of 35.37. The Construction industry median Gross Margin % is 20.70. Xiamen Solex High-Tech Industries Co's value of 32.37% is 56.4% above this industry median. Based on the distribution chart, Xiamen Solex High-Tech Industries Co ranks #464 out of 1725 companies in the Construction industry, which is above the industry midpoint. Overall, Xiamen Solex High-Tech Industries Co has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Xiamen Solex High-Tech Industries Co's Gross Margin % compare to TT and JCI?
According to the Construction industry distribution chart, Xiamen Solex High-Tech Industries Co ranks #464 out of 1725 companies for Gross Margin %. This puts Xiamen Solex High-Tech Industries Co in the upper half of its industry. The industry median Gross Margin % is 20.70. Xiamen Solex High-Tech Industries Co's value of 32.37% is 56.4% above this benchmark. Historically, Xiamen Solex High-Tech Industries Co's own Gross Margin % has ranged from 29.54 to 35.37 over the past decade. While the company's 10-year median is 33.28 vs. the industry median of 20.70, Xiamen Solex High-Tech Industries 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 a Construction company?
The median Gross Margin % among Construction companies is 20.70, based on 1,725 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. Xiamen Solex High-Tech Industries Co's current Gross Margin % of 32.37% is 56.4% 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 Xiamen Solex High-Tech Industries Co and its competitors. For the Construction industry, the median Gross Margin % is 20.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Xiamen Solex High-Tech Industries Co's current Gross Margin % is 32.37%, which is near median its own 10-year median of 33.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Xiamen Solex High-Tech Industries Co stock overvalued right now?
Based on GuruFocus' analysis, Xiamen Solex High-Tech Industries Co (SHSE:603992) is currently considered Fairly Valued. The stock's GF Value™ is ¥20.44, compared to a current price of ¥21.62 — trading 5.8% above its estimated fair value. The current Gross Margin % is 32.37%, which is near median its 10-year median of 33.28 and 56.4% above the Construction industry median of 20.70. Xiamen Solex High-Tech Industries Co's overall GF Score™ is 78/100 with 4 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 Xiamen Solex High-Tech Industries Co (SHSE:603992), the current Gross Margin % is 32.37% 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 Xiamen Solex High-Tech Industries Co (SHSE:603992) Overvalued in 2026?
Based on GuruFocus' analysis, Xiamen Solex High-Tech Industries Co stock appears to be overvalued.
The current stock price of ¥21.62 is trading 5.8% above its estimated GF Value™ of ¥20.44.
GuruFocus considers Xiamen Solex High-Tech Industries Co to be Fairly Valued.
Key valuation signals for SHSE:603992:
Gross Margin %: 32.37% (near median its 10-year median of 33.28)
GF Value™: ¥20.44 vs. price of ¥21.62 (5.8% above fair value)
Industry Position: 56.4% above the Construction median (#464 of 1725)
No single metric tells the full story. See the SHSE:603992 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Xiamen Solex High-Tech Industries Co Business Description
Xiamen Solex High-Tech Industries Co Ltd is engaged in the Research, development, production and sales of bathroom accessories such as shower heads, shower systems, faucets, hoses, riser bars and spare parts.
78GF Score
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