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Keystone Technology Co (SHSE:605588) 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
Keystone Technology Co had a gross margin of -0.52% for the quarter that ended in Jun. 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.
Keystone Technology Co Gross Margin % Related Terms
Keystone Technology Co Gross Margin % Historical Data
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The historical data trend for Keystone Technology Co'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.
SHSE:605588 vs AMAT, LRCX, KLAC: Gross Margin % Comparison
For the Semiconductor Equipment & Materials subindustry, Keystone 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.
Keystone Technology Co Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Keystone Technology Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Keystone 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.
Keystone Technology Co (SHSE:605588) has a Gross Margin % of -0.52% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Keystone Technology Co and its competitors. Over the past decade, Keystone Technology Co's Gross Margin % has ranged from 2.31 to 34.26. According to the industry distribution chart, Keystone Technology Co ranks #944 out of 1013 companies in the Semiconductors industry, placing it in the top 93.2%.
Is Keystone Technology Co's Gross Margin % too high?
Keystone Technology Co's current Gross Margin % is -0.52%. Over the past 10 years, this metric has ranged from a low of 2.31 to a high of 34.26. Based on the distribution chart, Keystone Technology Co ranks #944 out of 1013 companies in the Semiconductors industry, which is in the bottom quartile relative to peers. Overall, Keystone Technology Co has a GF Score™ of 70/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Keystone Technology Co's Gross Margin % compare to AMAT and LRCX?
According to the Semiconductors industry distribution chart, Keystone Technology Co ranks #944 out of 1013 companies for Gross Margin %. This places Keystone Technology Co in the lower half of its industry. The industry median Gross Margin % is 30.23. Historically, Keystone Technology Co's own Gross Margin % has ranged from 2.31 to 34.26 over the past decade. 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 Semiconductors company?
The median Gross Margin % among Semiconductors companies is 30.23, based on 1,013 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. 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 Keystone Technology Co and its competitors. For the Semiconductors industry, the median Gross Margin % is 30.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Keystone Technology Co's current Gross Margin % is -0.52%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Keystone Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Keystone Technology Co (SHSE:605588) is currently considered Fairly Valued. The stock's GF Value™ is ¥51.74, compared to a current price of ¥46.98 — trading 9.2% below its estimated fair value. The current Gross Margin % is -0.52%. Keystone Technology Co's overall GF Score™ is 70/100 with 7 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 Keystone Technology Co (SHSE:605588), the current Gross Margin % is -0.52% as of Jun. 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 Keystone Technology Co (SHSE:605588) Overvalued in 2026?
Based on GuruFocus' analysis, Keystone Technology Co stock appears to be undervalued.
The current stock price of ¥46.98 is trading 9.2% below its estimated GF Value™ of ¥51.74.
GuruFocus considers Keystone Technology Co to be Fairly Valued.
Key valuation signals for SHSE:605588:
Gross Margin %: -0.52%
GF Value™: ¥51.74 vs. price of ¥46.98 (9.2% below fair value)
No single metric tells the full story. See the SHSE:605588 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Keystone Technology Co Ltd is engaged in the research and development, production and sales of semiconductor display devices and special adhesive materials. The main products of company include polarizers, functional devices, signal connectors, liquid crystal modules and display panel production materials. The terminals are mainly used in LCD TVs, smart phones, tablets, laptops, and wearable devices.
70GF Score
Get the complete analysis for SHSE:605588
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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