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SHSE:688119's Gross Margin % is ranked worse than 86.15% of 397
companies
in the Building Materials industry
Industry Median: 26.18
vs SHSE:688119: 12.28
Sinosteel Luonai Materials Technology Co had a gross margin of 15.79% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Sinosteel Luonai Materials Technology Co (SHSE:688119) 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
Sinosteel Luonai Materials Technology Co had a gross margin of 15.79% 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.
Sinosteel Luonai Materials Technology Co Gross Margin % Related Terms
Sinosteel Luonai Materials 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.
Sinosteel Luonai Materials Technology Co Gross Margin % Chart
Sinosteel Luonai Materials Technology Co Annual Data
SHSE:688119 vs CRH, VMC, MLM: Gross Margin % Comparison
For the Building Materials subindustry, Sinosteel Luonai Materials 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.
Sinosteel Luonai Materials Technology Co Gross Margin % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Sinosteel Luonai Materials Technology Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sinosteel Luonai Materials 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.
Sinosteel Luonai Materials Technology Co (SHSE:688119) has a Gross Margin % of 15.79% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Sinosteel Luonai Materials Technology Co and its competitors. This is 28% below median its historical median of 21.86. Over the past decade, Sinosteel Luonai Materials Technology Co's Gross Margin % has ranged from 12.28 to 26.65. According to the industry distribution chart, Sinosteel Luonai Materials Technology Co ranks #342 out of 397 companies in the Building Materials industry, placing it in the top 86.1%.
Is Sinosteel Luonai Materials Technology Co's Gross Margin % too high?
Sinosteel Luonai Materials Technology Co's current Gross Margin % of 15.79% is 28% below median its 10-year median of 21.86. Over the past 10 years, this metric has ranged from a low of 12.28 to a high of 26.65. The Building Materials industry median Gross Margin % is 26.18. Sinosteel Luonai Materials Technology Co's value of 15.79% is 39.7% below this industry median. Based on the distribution chart, Sinosteel Luonai Materials Technology Co ranks #342 out of 397 companies in the Building Materials industry, which is in the bottom quartile relative to peers. Overall, Sinosteel Luonai Materials Technology Co has a GF Score™ of 66/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sinosteel Luonai Materials Technology Co's Gross Margin % compare to CRH and VMC?
According to the Building Materials industry distribution chart, Sinosteel Luonai Materials Technology Co ranks #342 out of 397 companies for Gross Margin %. This places Sinosteel Luonai Materials Technology Co in the lower half of its industry. The industry median Gross Margin % is 26.18. Sinosteel Luonai Materials Technology Co's value of 15.79% is 39.7% below this benchmark. Historically, Sinosteel Luonai Materials Technology Co's own Gross Margin % has ranged from 12.28 to 26.65 over the past decade. While the company's 10-year median is 21.86 vs. the industry median of 26.18, Sinosteel Luonai Materials Technology 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 Building Materials company?
The median Gross Margin % among Building Materials companies is 26.18, based on 397 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. Sinosteel Luonai Materials Technology Co's current Gross Margin % of 15.79% is 39.7% 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 Sinosteel Luonai Materials Technology Co and its competitors. For the Building Materials industry, the median Gross Margin % is 26.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sinosteel Luonai Materials Technology Co's current Gross Margin % is 15.79%, which is 28% below median its own 10-year median of 21.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sinosteel Luonai Materials Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Sinosteel Luonai Materials Technology Co (SHSE:688119) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥3.50, compared to a current price of ¥3.87 — trading 10.6% above its estimated fair value. The current Gross Margin % is 15.79%, which is 28% below median its 10-year median of 21.86 and 39.7% below the Building Materials industry median of 26.18. Sinosteel Luonai Materials Technology Co's overall GF Score™ is 66/100 with 5 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 Sinosteel Luonai Materials Technology Co (SHSE:688119), the current Gross Margin % is 15.79% 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 Sinosteel Luonai Materials Technology Co (SHSE:688119) Overvalued in 2026?
Based on GuruFocus' analysis, Sinosteel Luonai Materials Technology Co stock appears to be overvalued.
The current stock price of ¥3.87 is trading 10.6% above its estimated GF Value™ of ¥3.50.
GuruFocus considers Sinosteel Luonai Materials Technology Co to be Modestly Overvalued.
Key valuation signals for SHSE:688119:
Gross Margin %: 15.79% (28% below median its 10-year median of 21.86)
GF Value™: ¥3.50 vs. price of ¥3.87 (10.6% above fair value)
Industry Position: 39.7% below the Building Materials median (#342 of 397)
No single metric tells the full story. See the SHSE:688119 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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