Tongqinglou Catering CoSHSE:605108 +2.18%74 Gross Margin % is 17.06% as of Mar. 2026, which is 33% below its 10-year median of 25.28. GuruFocus rates SHSE:605108 with a GF Score™ of 74/100 and a GF Value™ of ¥22.18 (Possible Value Trap). The stock has 10 warning signs investors should review. Among 1,008 Business Services companies, Tongqinglou Catering Co ranks worse than 81.35% on this metric.
SHSE:605108's Gross Margin % is ranked worse than 81.35% of 1008
companies
in the Business Services industry
Industry Median: 34.515
vs SHSE:605108: 17.94
Tongqinglou Catering Co had a gross margin of 17.06% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Tongqinglou Catering Co was -2.80% per year.
Tongqinglou Catering Co (SHSE:605108) 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
Tongqinglou Catering Co had a gross margin of 17.06% 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.
Tongqinglou Catering Co Gross Margin % Related Terms
Tongqinglou Catering 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.
SHSE:605108 vs CTAS, CPRT, ULS: Gross Margin % Comparison
For the Specialty Business Services subindustry, Tongqinglou Catering 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.
Tongqinglou Catering Co Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Tongqinglou Catering Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Tongqinglou Catering 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.
Tongqinglou Catering Co (SHSE:605108) has a Gross Margin % of 17.06% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Tongqinglou Catering Co and its competitors. This is 33% below median its historical median of 25.28. Over the past decade, Tongqinglou Catering Co's Gross Margin % has ranged from 17.94 to 56.09. According to the industry distribution chart, Tongqinglou Catering Co ranks #820 out of 1008 companies in the Business Services industry, placing it in the top 81.3%.
Is Tongqinglou Catering Co's Gross Margin % too high?
Tongqinglou Catering Co's current Gross Margin % of 17.06% is 33% below median its 10-year median of 25.28. Over the past 10 years, this metric has ranged from a low of 17.94 to a high of 56.09. The Business Services industry median Gross Margin % is 34.52. Tongqinglou Catering Co's value of 17.06% is 50.6% below this industry median. Based on the distribution chart, Tongqinglou Catering Co ranks #820 out of 1008 companies in the Business Services industry, which is in the bottom quartile relative to peers. Overall, Tongqinglou Catering Co has a GF Score™ of 74/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Tongqinglou Catering Co's Gross Margin % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Tongqinglou Catering Co ranks #820 out of 1008 companies for Gross Margin %. This places Tongqinglou Catering Co in the lower half of its industry. The industry median Gross Margin % is 34.52. Tongqinglou Catering Co's value of 17.06% is 50.6% below this benchmark. Historically, Tongqinglou Catering Co's own Gross Margin % has ranged from 17.94 to 56.09 over the past decade. While the company's 10-year median is 25.28 vs. the industry median of 34.52, Tongqinglou Catering 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 Business Services company?
The median Gross Margin % among Business Services companies is 34.52, based on 1,008 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. Tongqinglou Catering Co's current Gross Margin % of 17.06% is 50.6% 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 Tongqinglou Catering Co and its competitors. For the Business Services industry, the median Gross Margin % is 34.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tongqinglou Catering Co's current Gross Margin % is 17.06%, which is 33% below median its own 10-year median of 25.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tongqinglou Catering Co stock overvalued right now?
Based on GuruFocus' analysis, Tongqinglou Catering Co (SHSE:605108) is currently considered Possible Value Trap. The stock's GF Value™ is ¥22.18, compared to a current price of ¥11.72 — trading 47.2% below its estimated fair value. The current Gross Margin % is 17.06%, which is 33% below median its 10-year median of 25.28 and 50.6% below the Business Services industry median of 34.52. Tongqinglou Catering Co's overall GF Score™ is 74/100 with 10 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 Tongqinglou Catering Co (SHSE:605108), the current Gross Margin % is 17.06% 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 Tongqinglou Catering Co (SHSE:605108) Overvalued in 2026?
Based on GuruFocus' analysis, Tongqinglou Catering Co stock appears to be undervalued.
The current stock price of ¥11.72 is trading 47.2% below its estimated GF Value™ of ¥22.18.
GuruFocus considers Tongqinglou Catering Co to be Possible Value Trap.
Key valuation signals for SHSE:605108:
Gross Margin %: 17.06% (33% below median its 10-year median of 25.28)
GF Value™: ¥22.18 vs. price of ¥11.72 (47.2% below fair value)
Industry Position: 50.6% below the Business Services median (#820 of 1008)
No single metric tells the full story. See the SHSE:605108 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tongqinglou Catering Co Ltd is a provider of catering services. The company provides catering (limited to branches); hotel management consulting and training services, tobacco and alcohol retail (limited to branches), conference services; wedding services, among others.
74GF Score
Get the complete analysis for SHSE:605108
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