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Zhejiang Fulai New Material Co (SHSE:605488) 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
Zhejiang Fulai New Material Co had a gross margin of 12.60% 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.
Zhejiang Fulai New Material Co Gross Margin % Related Terms
Zhejiang Fulai New Material 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.
Zhejiang Fulai New Material Co Gross Margin % Chart
SHSE:605488 vs LIN, SHW, ECL: Gross Margin % Comparison
For the Specialty Chemicals subindustry, Zhejiang Fulai New Material 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.
Zhejiang Fulai New Material Co Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Zhejiang Fulai New Material Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Zhejiang Fulai New Material 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.
Zhejiang Fulai New Material Co (SHSE:605488) has a Gross Margin % of 12.60% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Zhejiang Fulai New Material Co and its competitors. This is 27% below median its historical median of 17.25. Over the past decade, Zhejiang Fulai New Material Co's Gross Margin % has ranged from 12.57 to 23.39. According to the industry distribution chart, Zhejiang Fulai New Material Co ranks #1212 out of 1558 companies in the Chemicals industry, placing it in the top 77.8%.
Is Zhejiang Fulai New Material Co's Gross Margin % too high?
Zhejiang Fulai New Material Co's current Gross Margin % of 12.60% is 27% below median its 10-year median of 17.25. Over the past 10 years, this metric has ranged from a low of 12.57 to a high of 23.39. The Chemicals industry median Gross Margin % is 23.47. Zhejiang Fulai New Material Co's value of 12.60% is 46.3% below this industry median. Based on the distribution chart, Zhejiang Fulai New Material Co ranks #1212 out of 1558 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Zhejiang Fulai New Material Co has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zhejiang Fulai New Material Co's Gross Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Zhejiang Fulai New Material Co ranks #1212 out of 1558 companies for Gross Margin %. This places Zhejiang Fulai New Material Co in the lower half of its industry. The industry median Gross Margin % is 23.47. Zhejiang Fulai New Material Co's value of 12.60% is 46.3% below this benchmark. Historically, Zhejiang Fulai New Material Co's own Gross Margin % has ranged from 12.57 to 23.39 over the past decade. While the company's 10-year median is 17.25 vs. the industry median of 23.47, Zhejiang Fulai New Material 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 Chemicals company?
The median Gross Margin % among Chemicals companies is 23.47, based on 1,558 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. Zhejiang Fulai New Material Co's current Gross Margin % of 12.60% is 46.3% 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 Zhejiang Fulai New Material Co and its competitors. For the Chemicals industry, the median Gross Margin % is 23.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhejiang Fulai New Material Co's current Gross Margin % is 12.60%, which is 27% below median its own 10-year median of 17.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhejiang Fulai New Material Co stock overvalued right now?
Based on GuruFocus' analysis, Zhejiang Fulai New Material Co (SHSE:605488) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥18.08, compared to a current price of ¥27.67 — trading 53% above its estimated fair value. The current Gross Margin % is 12.60%, which is 27% below median its 10-year median of 17.25 and 46.3% below the Chemicals industry median of 23.47. Zhejiang Fulai New Material Co's overall GF Score™ is 78/100 with 6 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 Zhejiang Fulai New Material Co (SHSE:605488), the current Gross Margin % is 12.60% 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 Zhejiang Fulai New Material Co (SHSE:605488) Overvalued in 2026?
Based on GuruFocus' analysis, Zhejiang Fulai New Material Co stock appears to be overvalued.
The current stock price of ¥27.67 is trading 53% above its estimated GF Value™ of ¥18.08.
GuruFocus considers Zhejiang Fulai New Material Co to be Significantly Overvalued.
Key valuation signals for SHSE:605488:
Gross Margin %: 12.60% (27% below median its 10-year median of 17.25)
GF Value™: ¥18.08 vs. price of ¥27.67 (53% above fair value)
Industry Position: 46.3% below the Chemicals median (#1212 of 1558)
No single metric tells the full story. See the SHSE:605488 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhejiang Fulai New Material Co Business Description
Zhejiang Fulai New Material Co Ltd is engaged in the development, production and sales of functional coating composite materials. It mainly produces advertising inkjet printing materials, label and logo printing materials, electronic-grade functional materials and other products. It owns brands such as Fleisant, Meshen, and Ori Digital.
78GF Score
Get the complete analysis for SHSE:605488
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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