Ningbo Deye TechnologySHSE:605117 -2.54%88 Gross Margin % is 41.45% as of Mar. 2026, which is 74% above its 10-year median of 23.79. GuruFocus rates SHSE:605117 with a GF Score™ of 88/100 and a GF Value™ of ¥75.27 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 2,992 Industrial Products companies, Ningbo Deye Technology ranks better than 77.54% on this metric.
SHSE:605117's Gross Margin % is ranked better than 77.54% of 2992
companies
in the Industrial Products industry
Industry Median: 26.82
vs SHSE:605117: 39.34
Ningbo Deye Technology had a gross margin of 41.45% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Ningbo Deye Technology was 12.80% per year.
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
Ningbo Deye Technology had a gross margin of 41.45% for the quarter that ended in Mar. 2026 => Durable 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.
Ningbo Deye Technology Gross Margin % Related Terms
Ningbo Deye Technology Gross Margin % Historical Data
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The historical data trend for Ningbo Deye Technology's Gross Margin % can be seen below:
* 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.
For the Electrical Equipment & Parts subindustry, Ningbo Deye Technology'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.
Ningbo Deye Technology Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Ningbo Deye Technology's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ningbo Deye Technology'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.
Ningbo Deye Technology (SHSE:605117) has a Gross Margin % of 41.45% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Ningbo Deye Technology and its competitors. This is 74% above median its historical median of 23.79. Over the past decade, Ningbo Deye Technology's Gross Margin % has ranged from 19.18 to 39.83. According to the industry distribution chart, Ningbo Deye Technology ranks #672 out of 2992 companies in the Industrial Products industry, placing it in the top 22.5%.
Is Ningbo Deye Technology's Gross Margin % too high?
Ningbo Deye Technology's current Gross Margin % of 41.45% is 74% above median its 10-year median of 23.79. Over the past 10 years, this metric has ranged from a low of 19.18 to a high of 39.83. The Industrial Products industry median Gross Margin % is 26.82. Ningbo Deye Technology's value of 41.45% is 54.5% above this industry median. Based on the distribution chart, Ningbo Deye Technology ranks #672 out of 2992 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Ningbo Deye Technology has a GF Score™ of 88/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ningbo Deye Technology's Gross Margin % compare to VRT and BE?
According to the Industrial Products industry distribution chart, Ningbo Deye Technology ranks #672 out of 2992 companies for Gross Margin %. This places Ningbo Deye Technology in the top 23% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 26.82. Ningbo Deye Technology's value of 41.45% is 54.5% above this benchmark. Historically, Ningbo Deye Technology's own Gross Margin % has ranged from 19.18 to 39.83 over the past decade. While the company's 10-year median is 23.79 vs. the industry median of 26.82, Ningbo Deye Technology 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.82, based on 2,992 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. Ningbo Deye Technology's current Gross Margin % of 41.45% is 54.5% 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 Ningbo Deye Technology and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ningbo Deye Technology's current Gross Margin % is 41.45%, which is 74% above median its own 10-year median of 23.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ningbo Deye Technology stock overvalued right now?
Based on GuruFocus' analysis, Ningbo Deye Technology (SHSE:605117) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥75.27, compared to a current price of ¥84.00 — trading 11.6% above its estimated fair value. The current Gross Margin % is 41.45%, which is 74% above median its 10-year median of 23.79 and 54.5% above the Industrial Products industry median of 26.82. Ningbo Deye Technology's overall GF Score™ is 88/100 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 Ningbo Deye Technology (SHSE:605117), the current Gross Margin % is 41.45% 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 Ningbo Deye Technology (SHSE:605117) Overvalued in 2026?
Based on GuruFocus' analysis, Ningbo Deye Technology stock appears to be overvalued.
The current stock price of ¥84.00 is trading 11.6% above its estimated GF Value™ of ¥75.27.
GuruFocus considers Ningbo Deye Technology to be Modestly Overvalued.
Key valuation signals for SHSE:605117:
Gross Margin %: 41.45% (74% above median its 10-year median of 23.79)
GF Value™: ¥75.27 vs. price of ¥84.00 (11.6% above fair value)
Industry Position: 54.5% above the Industrial Products median (#672 of 2992)
No single metric tells the full story. See the SHSE:605117 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ningbo Deye Technology Corp is engaged in the research, development, manufacturing, and sale of inverters, heat exchangers, and dehumidifiers. Its product range also includes refrigeration equipment, air and water purification systems, fresh air systems, solar air conditioners, variable frequency water pumps, and electronic controllers.
88GF Score
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