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SHSE:688017's Gross Margin % is ranked better than 72.76% of 2999
companies
in the Industrial Products industry
Industry Median: 26.81
vs SHSE:688017: 36.61
Leader Harmonious Drive Systems Co had a gross margin of 33.62% for the quarter that ended in Mar. 2026 => Competition eroding margins
Leader Harmonious Drive Systems Co (SHSE:688017) 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
Leader Harmonious Drive Systems Co had a gross margin of 33.62% 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.
Leader Harmonious Drive Systems Co Gross Margin % Related Terms
Leader Harmonious Drive Systems 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.
Leader Harmonious Drive Systems Co Gross Margin % Chart
SHSE:688017 vs GEV, ETN, PH: Gross Margin % Comparison
For the Specialty Industrial Machinery subindustry, Leader Harmonious Drive Systems 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.
Leader Harmonious Drive Systems Co Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Leader Harmonious Drive Systems Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Leader Harmonious Drive Systems 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.
Leader Harmonious Drive Systems Co (SHSE:688017) has a Gross Margin % of 33.62% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Leader Harmonious Drive Systems Co and its competitors. This is 29% below median its historical median of 47.18. Over the past decade, Leader Harmonious Drive Systems Co's Gross Margin % has ranged from 36.61 to 52.52. According to the industry distribution chart, Leader Harmonious Drive Systems Co ranks #817 out of 2999 companies in the Industrial Products industry, placing it in the top 27.2%.
Is Leader Harmonious Drive Systems Co's Gross Margin % too high?
Leader Harmonious Drive Systems Co's current Gross Margin % of 33.62% is 29% below median its 10-year median of 47.18. Over the past 10 years, this metric has ranged from a low of 36.61 to a high of 52.52. The Industrial Products industry median Gross Margin % is 26.81. Leader Harmonious Drive Systems Co's value of 33.62% is 25.4% above this industry median. Based on the distribution chart, Leader Harmonious Drive Systems Co ranks #817 out of 2999 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Leader Harmonious Drive Systems Co has a GF Score™ of 83/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Leader Harmonious Drive Systems Co's Gross Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Leader Harmonious Drive Systems Co ranks #817 out of 2999 companies for Gross Margin %. This puts Leader Harmonious Drive Systems Co in the upper half of its industry. The industry median Gross Margin % is 26.81. Leader Harmonious Drive Systems Co's value of 33.62% is 25.4% above this benchmark. Historically, Leader Harmonious Drive Systems Co's own Gross Margin % has ranged from 36.61 to 52.52 over the past decade. While the company's 10-year median is 47.18 vs. the industry median of 26.81, Leader Harmonious Drive Systems 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.81, based on 2,999 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. Leader Harmonious Drive Systems Co's current Gross Margin % of 33.62% is 25.4% 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 Leader Harmonious Drive Systems Co and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Leader Harmonious Drive Systems Co's current Gross Margin % is 33.62%, which is 29% below median its own 10-year median of 47.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Leader Harmonious Drive Systems Co stock overvalued right now?
Based on GuruFocus' analysis, Leader Harmonious Drive Systems Co (SHSE:688017) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥222.55, compared to a current price of ¥261.00 — trading 17.3% above its estimated fair value. The current Gross Margin % is 33.62%, which is 29% below median its 10-year median of 47.18 and 25.4% above the Industrial Products industry median of 26.81. Leader Harmonious Drive Systems Co's overall GF Score™ is 83/100 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 Leader Harmonious Drive Systems Co (SHSE:688017), the current Gross Margin % is 33.62% 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 Leader Harmonious Drive Systems Co (SHSE:688017) Overvalued in 2026?
Based on GuruFocus' analysis, Leader Harmonious Drive Systems Co stock appears to be overvalued.
The current stock price of ¥261.00 is trading 17.3% above its estimated GF Value™ of ¥222.55.
GuruFocus considers Leader Harmonious Drive Systems Co to be Modestly Overvalued.
Key valuation signals for SHSE:688017:
Gross Margin %: 33.62% (29% below median its 10-year median of 47.18)
GF Value™: ¥222.55 vs. price of ¥261.00 (17.3% above fair value)
Industry Position: 25.4% above the Industrial Products median (#817 of 2999)
No single metric tells the full story. See the SHSE:688017 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Leader Harmonious Drive Systems Co Business Description
Leader Harmonious Drive Systems Co Ltd is engaged in design, production and sales of precision transmission devices. The company's products include harmonic reducers, mechatronics actuators and precision parts. Its products are widely used in high-end manufacturing fields such as industrial robots, service robots, CNC machine tools, aerospace, medical equipment, semiconductor production equipment, and new energy equipment.
83GF Score
Get the complete analysis for SHSE:688017
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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