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Ningbo TIP Rubber Technology CoSHSE:605255 -9.99%58 Gross Margin % is 36.93% as of Mar. 2026, which is 8% below its 10-year median of 40.09. GuruFocus rates SHSE:605255 with a GF Score™ of 58/100 and a GF Value™ of ¥15.49 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 1,308 Vehicles & Parts companies, Ningbo TIP Rubber Technology Co ranks better than 80.43% on this metric.
SHSE:605255's Gross Margin % is ranked better than 80.43% of 1308
companies
in the Vehicles & Parts industry
Industry Median: 19.885
vs SHSE:605255: 35.51
Ningbo TIP Rubber Technology Co had a gross margin of 36.93% for the quarter that ended in Mar. 2026 => Competition eroding margins
Ningbo TIP Rubber Technology Co (SHSE:605255) 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
Ningbo TIP Rubber Technology Co had a gross margin of 36.93% 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.
Ningbo TIP Rubber Technology Co Gross Margin % Related Terms
Ningbo TIP Rubber Technology 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.
Ningbo TIP Rubber Technology Co Gross Margin % Chart
SHSE:605255 vs ORLY, AZO: Gross Margin % Comparison
For the Auto Parts subindustry, Ningbo TIP Rubber Technology 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.
Ningbo TIP Rubber Technology Co Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Ningbo TIP Rubber Technology Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ningbo TIP Rubber Technology 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.
Ningbo TIP Rubber Technology Co (SHSE:605255) has a Gross Margin % of 36.93% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Ningbo TIP Rubber Technology Co and its competitors. This is near median its historical median of 40.09. Over the past decade, Ningbo TIP Rubber Technology Co's Gross Margin % has ranged from 33.40 to 43.84. According to the industry distribution chart, Ningbo TIP Rubber Technology Co ranks #256 out of 1308 companies in the Vehicles & Parts industry, placing it in the top 19.6%.
Is Ningbo TIP Rubber Technology Co's Gross Margin % too high?
Ningbo TIP Rubber Technology Co's current Gross Margin % of 36.93% is near median its 10-year median of 40.09. Over the past 10 years, this metric has ranged from a low of 33.40 to a high of 43.84. The Vehicles & Parts industry median Gross Margin % is 19.89. Ningbo TIP Rubber Technology Co's value of 36.93% is 85.7% above this industry median. Based on the distribution chart, Ningbo TIP Rubber Technology Co ranks #256 out of 1308 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Ningbo TIP Rubber Technology Co has a GF Score™ of 58/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ningbo TIP Rubber Technology Co's Gross Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Ningbo TIP Rubber Technology Co ranks #256 out of 1308 companies for Gross Margin %. This places Ningbo TIP Rubber Technology Co in the top 20% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 19.89. Ningbo TIP Rubber Technology Co's value of 36.93% is 85.7% above this benchmark. Historically, Ningbo TIP Rubber Technology Co's own Gross Margin % has ranged from 33.40 to 43.84 over the past decade. While the company's 10-year median is 40.09 vs. the industry median of 19.89, Ningbo TIP Rubber Technology 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 19.89, based on 1,308 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 TIP Rubber Technology Co's current Gross Margin % of 36.93% is 85.7% 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 TIP Rubber Technology Co and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ningbo TIP Rubber Technology Co's current Gross Margin % is 36.93%, which is near median its own 10-year median of 40.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ningbo TIP Rubber Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Ningbo TIP Rubber Technology Co (SHSE:605255) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥15.49, compared to a current price of ¥78.48 — trading 406.6% above its estimated fair value. The current Gross Margin % is 36.93%, which is near median its 10-year median of 40.09 and 85.7% above the Vehicles & Parts industry median of 19.89. Ningbo TIP Rubber Technology 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 Ningbo TIP Rubber Technology Co (SHSE:605255), the current Gross Margin % is 36.93% 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 TIP Rubber Technology Co (SHSE:605255) Overvalued in 2026?
Based on GuruFocus' analysis, Ningbo TIP Rubber Technology Co stock appears to be overvalued.
The current stock price of ¥78.48 is trading 406.6% above its estimated GF Value™ of ¥15.49.
GuruFocus considers Ningbo TIP Rubber Technology Co to be Significantly Overvalued.
Key valuation signals for SHSE:605255:
Gross Margin %: 36.93% (near median its 10-year median of 40.09)
GF Value™: ¥15.49 vs. price of ¥78.48 (406.6% above fair value)
Industry Position: 85.7% above the Vehicles & Parts median (#256 of 1308)
No single metric tells the full story. See the SHSE:605255 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ningbo TIP Rubber Technology Co Business Description
Ningbo TIP Rubber Technology Co Ltd is engaged in the production and sales of automotive polymer fluid piping systems and sealing system parts, and assemblies. The company's products include Water hose, Fuel hose, Moulded part, Assembly, Rubber compound, metal processing / plastic part, and Hydraulic hose. The company's main customers are Nissan, Mazda, Ford, Kubota, Jiangling, FAW, Geely, Toyota, Zoomlion, Kelos, etc., and it provides OEM services for automobiles, engineering vehicles, and hydraulic machinery. It operates its businesses within the domestic market and overseas markets.
58GF Score
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