Shentong Technology Group CoSHSE:605228 -2.85%78 Gross Margin % is 24.25% as of Mar. 2026, which is 5% above its 10-year median of 23.12. GuruFocus rates SHSE:605228 with a GF Score™ of 78/100 and a GF Value™ of ¥12.66 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 1,307 Vehicles & Parts companies, Shentong Technology Group Co ranks better than 61.44% on this metric.
SHSE:605228's Gross Margin % is ranked better than 61.44% of 1307
companies
in the Vehicles & Parts industry
Industry Median: 19.83
vs SHSE:605228: 23.61
Shentong Technology Group Co had a gross margin of 24.25% for the quarter that ended in Mar. 2026 => Competition eroding margins
Shentong Technology Group Co (SHSE:605228) 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
Shentong Technology Group Co had a gross margin of 24.25% 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.
Shentong Technology Group Co Gross Margin % Related Terms
Shentong Technology Group 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:605228 vs ORLY, AZO: Gross Margin % Comparison
For the Auto Parts subindustry, Shentong Technology Group 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.
Shentong Technology Group Co Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Shentong Technology Group Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Shentong Technology Group 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.
Shentong Technology Group Co (SHSE:605228) has a Gross Margin % of 24.25% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Shentong Technology Group Co and its competitors. This is near median its historical median of 23.12. Over the past decade, Shentong Technology Group Co's Gross Margin % has ranged from 18.53 to 25.73. According to the industry distribution chart, Shentong Technology Group Co ranks #504 out of 1307 companies in the Vehicles & Parts industry, placing it in the top 38.6%.
Is Shentong Technology Group Co's Gross Margin % too high?
Shentong Technology Group Co's current Gross Margin % of 24.25% is near median its 10-year median of 23.12. Over the past 10 years, this metric has ranged from a low of 18.53 to a high of 25.73. The Vehicles & Parts industry median Gross Margin % is 19.83. Shentong Technology Group Co's value of 24.25% is 22.3% above this industry median. Based on the distribution chart, Shentong Technology Group Co ranks #504 out of 1307 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Shentong Technology Group Co has a GF Score™ of 78/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shentong Technology Group Co's Gross Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Shentong Technology Group Co ranks #504 out of 1307 companies for Gross Margin %. This puts Shentong Technology Group Co in the upper half of its industry. The industry median Gross Margin % is 19.83. Shentong Technology Group Co's value of 24.25% is 22.3% above this benchmark. Historically, Shentong Technology Group Co's own Gross Margin % has ranged from 18.53 to 25.73 over the past decade. While the company's 10-year median is 23.12 vs. the industry median of 19.83, Shentong Technology Group 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 Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.83, based on 1,307 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. Shentong Technology Group Co's current Gross Margin % of 24.25% is 22.3% 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 Shentong Technology Group Co and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shentong Technology Group Co's current Gross Margin % is 24.25%, which is near median its own 10-year median of 23.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shentong Technology Group Co stock overvalued right now?
Based on GuruFocus' analysis, Shentong Technology Group Co (SHSE:605228) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥12.66, compared to a current price of ¥14.31 — trading 13% above its estimated fair value. The current Gross Margin % is 24.25%, which is near median its 10-year median of 23.12 and 22.3% above the Vehicles & Parts industry median of 19.83. Shentong Technology Group Co's overall GF Score™ is 78/100 with 2 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 Shentong Technology Group Co (SHSE:605228), the current Gross Margin % is 24.25% 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 Shentong Technology Group Co (SHSE:605228) Overvalued in 2026?
Based on GuruFocus' analysis, Shentong Technology Group Co stock appears to be overvalued.
The current stock price of ¥14.31 is trading 13% above its estimated GF Value™ of ¥12.66.
GuruFocus considers Shentong Technology Group Co to be Modestly Overvalued.
Key valuation signals for SHSE:605228:
Gross Margin %: 24.25% (near median its 10-year median of 23.12)
GF Value™: ¥12.66 vs. price of ¥14.31 (13% above fair value)
Industry Position: 22.3% above the Vehicles & Parts median (#504 of 1307)
No single metric tells the full story. See the SHSE:605228 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shentong Technology Group Co Ltd is engaged in the research and development, production and sales of automotive non-metallic parts and molds. The main products include automotive powertrain parts, interior and exterior trim parts and molds.
78GF Score
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