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Aofu Environmental Technology Co (SHSE:688021) 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
Aofu Environmental Technology Co had a gross margin of 34.49% 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.
Aofu Environmental Technology Co Gross Margin % Related Terms
Aofu Environmental 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.
Aofu Environmental Technology Co Gross Margin % Chart
SHSE:688021 vs LIN, SHW, ECL: Gross Margin % Comparison
For the Specialty Chemicals subindustry, Aofu Environmental 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.
Aofu Environmental Technology Co Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Aofu Environmental Technology Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Aofu Environmental 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.
Aofu Environmental Technology Co (SHSE:688021) has a Gross Margin % of 34.49% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Aofu Environmental Technology Co and its competitors. This is 22% below median its historical median of 44.44. Over the past decade, Aofu Environmental Technology Co's Gross Margin % has ranged from 16.69 to 59.89. According to the industry distribution chart, Aofu Environmental Technology Co ranks #380 out of 1558 companies in the Chemicals industry, placing it in the top 24.4%.
Is Aofu Environmental Technology Co's Gross Margin % too high?
Aofu Environmental Technology Co's current Gross Margin % of 34.49% is 22% below median its 10-year median of 44.44. Over the past 10 years, this metric has ranged from a low of 16.69 to a high of 59.89. The Chemicals industry median Gross Margin % is 23.55. Aofu Environmental Technology Co's value of 34.49% is 46.5% above this industry median. Based on the distribution chart, Aofu Environmental Technology Co ranks #380 out of 1558 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Aofu Environmental Technology Co has a GF Score™ of 78/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Aofu Environmental Technology Co's Gross Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Aofu Environmental Technology Co ranks #380 out of 1558 companies for Gross Margin %. This places Aofu Environmental Technology Co in the top 24% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 23.55. Aofu Environmental Technology Co's value of 34.49% is 46.5% above this benchmark. Historically, Aofu Environmental Technology Co's own Gross Margin % has ranged from 16.69 to 59.89 over the past decade. While the company's 10-year median is 44.44 vs. the industry median of 23.55, Aofu Environmental 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 Chemicals company?
The median Gross Margin % among Chemicals companies is 23.55, 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. Aofu Environmental Technology Co's current Gross Margin % of 34.49% is 46.5% 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 Aofu Environmental Technology Co and its competitors. For the Chemicals industry, the median Gross Margin % is 23.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aofu Environmental Technology Co's current Gross Margin % is 34.49%, which is 22% below median its own 10-year median of 44.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aofu Environmental Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Aofu Environmental Technology Co (SHSE:688021) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥20.83, compared to a current price of ¥17.84 — trading 14.4% below its estimated fair value. The current Gross Margin % is 34.49%, which is 22% below median its 10-year median of 44.44 and 46.5% above the Chemicals industry median of 23.55. Aofu Environmental Technology Co's overall GF Score™ is 78/100 with 3 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 Aofu Environmental Technology Co (SHSE:688021), the current Gross Margin % is 34.49% 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 Aofu Environmental Technology Co (SHSE:688021) Overvalued in 2026?
Based on GuruFocus' analysis, Aofu Environmental Technology Co stock appears to be undervalued.
The current stock price of ¥17.84 is trading 14.4% below its estimated GF Value™ of ¥20.83.
GuruFocus considers Aofu Environmental Technology Co to be Modestly Undervalued.
Key valuation signals for SHSE:688021:
Gross Margin %: 34.49% (22% below median its 10-year median of 44.44)
GF Value™: ¥20.83 vs. price of ¥17.84 (14.4% below fair value)
Industry Position: 46.5% above the Chemicals median (#380 of 1558)
No single metric tells the full story. See the SHSE:688021 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aofu Environmental Technology Co Business Description
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