SHSE:605122's Gross Margin % is ranked worse than 94.95% of 396
companies
in the Building Materials industry
Industry Median: 26.155
vs SHSE:605122: 4.49
Chongqing Sifang New Materials Co had a gross margin of 5.09% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Chongqing Sifang New Materials Co (SHSE:605122) 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
Chongqing Sifang New Materials Co had a gross margin of 5.09% 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.
Chongqing Sifang New Materials Co Gross Margin % Related Terms
Chongqing Sifang New Materials 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.
Chongqing Sifang New Materials Co Gross Margin % Chart
SHSE:605122 vs CRH, VMC, MLM: Gross Margin % Comparison
For the Building Materials subindustry, Chongqing Sifang New Materials 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.
Chongqing Sifang New Materials Co Gross Margin % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Chongqing Sifang New Materials Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Chongqing Sifang New Materials 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.
Chongqing Sifang New Materials Co (SHSE:605122) has a Gross Margin % of 5.09% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Chongqing Sifang New Materials Co and its competitors. This is 73% below median its historical median of 19.10. Over the past decade, Chongqing Sifang New Materials Co's Gross Margin % has ranged from 4.11 to 32.39. According to the industry distribution chart, Chongqing Sifang New Materials Co ranks #376 out of 396 companies in the Building Materials industry, placing it in the top 94.9%.
Is Chongqing Sifang New Materials Co's Gross Margin % too high?
Chongqing Sifang New Materials Co's current Gross Margin % of 5.09% is 73% below median its 10-year median of 19.10. Over the past 10 years, this metric has ranged from a low of 4.11 to a high of 32.39. The Building Materials industry median Gross Margin % is 26.16. Chongqing Sifang New Materials Co's value of 5.09% is 80.5% below this industry median. Based on the distribution chart, Chongqing Sifang New Materials Co ranks #376 out of 396 companies in the Building Materials industry, which is in the bottom quartile relative to peers. Overall, Chongqing Sifang New Materials Co has a GF Score™ of 58/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Chongqing Sifang New Materials Co's Gross Margin % compare to CRH and VMC?
According to the Building Materials industry distribution chart, Chongqing Sifang New Materials Co ranks #376 out of 396 companies for Gross Margin %. This places Chongqing Sifang New Materials Co in the lower half of its industry. The industry median Gross Margin % is 26.16. Chongqing Sifang New Materials Co's value of 5.09% is 80.5% below this benchmark. Historically, Chongqing Sifang New Materials Co's own Gross Margin % has ranged from 4.11 to 32.39 over the past decade. While the company's 10-year median is 19.10 vs. the industry median of 26.16, Chongqing Sifang New Materials 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 Building Materials company?
The median Gross Margin % among Building Materials companies is 26.16, based on 396 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. Chongqing Sifang New Materials Co's current Gross Margin % of 5.09% is 80.5% 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 Chongqing Sifang New Materials Co and its competitors. For the Building Materials industry, the median Gross Margin % is 26.16 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chongqing Sifang New Materials Co's current Gross Margin % is 5.09%, which is 73% below median its own 10-year median of 19.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chongqing Sifang New Materials Co stock overvalued right now?
Based on GuruFocus' analysis, Chongqing Sifang New Materials Co (SHSE:605122) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥8.87, compared to a current price of ¥10.76 — trading 21.3% above its estimated fair value. The current Gross Margin % is 5.09%, which is 73% below median its 10-year median of 19.10 and 80.5% below the Building Materials industry median of 26.16. Chongqing Sifang New Materials Co's overall GF Score™ is 58/100 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 Chongqing Sifang New Materials Co (SHSE:605122), the current Gross Margin % is 5.09% 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 Chongqing Sifang New Materials Co (SHSE:605122) Overvalued in 2026?
Based on GuruFocus' analysis, Chongqing Sifang New Materials Co stock appears to be overvalued.
The current stock price of ¥10.76 is trading 21.3% above its estimated GF Value™ of ¥8.87.
GuruFocus considers Chongqing Sifang New Materials Co to be Modestly Overvalued.
Key valuation signals for SHSE:605122:
Gross Margin %: 5.09% (73% below median its 10-year median of 19.10)
GF Value™: ¥8.87 vs. price of ¥10.76 (21.3% above fair value)
Industry Position: 80.5% below the Building Materials median (#376 of 396)
No single metric tells the full story. See the SHSE:605122 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chongqing Sifang New Materials Co Business Description
Chongqing Sifang New Materials Co Ltd is a construction material manufacturer that focuses on the research, development, production and sales of commercial concrete and also produces aggregates for construction. The company's products are widely used in infrastructure construction such as roads, bridges, tunnels, water conservancy, and industrial and civil real estate construction.
58GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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