Donglai Coating Technology (Shanghai) Co (SHSE:688129) 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
Donglai Coating Technology (Shanghai) Co had a gross margin of 37.56% 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.
Donglai Coating Technology (Shanghai) Co Gross Margin % Related Terms
Donglai Coating Technology (Shanghai) 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.
Donglai Coating Technology (Shanghai) Co Gross Margin % Chart
Donglai Coating Technology (Shanghai) Co Annual Data
SHSE:688129 vs LIN, SHW, ECL: Gross Margin % Comparison
For the Specialty Chemicals subindustry, Donglai Coating Technology (Shanghai) 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.
Donglai Coating Technology (Shanghai) Co Gross Margin % vs Chemicals Industry
* 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.
Donglai Coating Technology (Shanghai) Co (SHSE:688129) has a Gross Margin % of 37.56% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Donglai Coating Technology (Shanghai) Co and its competitors. This is 11% below median its historical median of 42.28. Over the past decade, Donglai Coating Technology (Shanghai) Co's Gross Margin % has ranged from 32.87 to 48.08. According to the industry distribution chart, Donglai Coating Technology (Shanghai) Co ranks #293 out of 1555 companies in the Chemicals industry, placing it in the top 18.8%.
Is Donglai Coating Technology (Shanghai) Co's Gross Margin % too high?
Donglai Coating Technology (Shanghai) Co's current Gross Margin % of 37.56% is 11% below median its 10-year median of 42.28. Over the past 10 years, this metric has ranged from a low of 32.87 to a high of 48.08. The Chemicals industry median Gross Margin % is 23.44. Donglai Coating Technology (Shanghai) Co's value of 37.56% is 60.2% above this industry median. Based on the distribution chart, Donglai Coating Technology (Shanghai) Co ranks #293 out of 1555 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Donglai Coating Technology (Shanghai) Co has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Donglai Coating Technology (Shanghai) Co's Gross Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Donglai Coating Technology (Shanghai) Co ranks #293 out of 1555 companies for Gross Margin %. This places Donglai Coating Technology (Shanghai) Co in the top 19% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 23.44. Donglai Coating Technology (Shanghai) Co's value of 37.56% is 60.2% above this benchmark. Historically, Donglai Coating Technology (Shanghai) Co's own Gross Margin % has ranged from 32.87 to 48.08 over the past decade. While the company's 10-year median is 42.28 vs. the industry median of 23.44, Donglai Coating Technology (Shanghai) 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 23.44, based on 1,555 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. Donglai Coating Technology (Shanghai) Co's current Gross Margin % of 37.56% is 60.2% 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 Donglai Coating Technology (Shanghai) Co and its competitors. For the Chemicals industry, the median Gross Margin % is 23.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Donglai Coating Technology (Shanghai) Co's current Gross Margin % is 37.56%, which is 11% below median its own 10-year median of 42.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Donglai Coating Technology (Shanghai) Co stock overvalued right now?
Based on GuruFocus' analysis, Donglai Coating Technology (Shanghai) Co (SHSE:688129) is currently considered Fairly Valued. The stock's GF Value™ is ¥23.96, compared to a current price of ¥24.12 — trading 0.7% above its estimated fair value. The current Gross Margin % is 37.56%, which is 11% below median its 10-year median of 42.28 and 60.2% above the Chemicals industry median of 23.44. Donglai Coating Technology (Shanghai) Co's overall GF Score™ is 85/100 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 Donglai Coating Technology (Shanghai) Co (SHSE:688129), the current Gross Margin % is 37.56% 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 Donglai Coating Technology (Shanghai) Co (SHSE:688129) Overvalued in 2026?
Based on GuruFocus' analysis, Donglai Coating Technology (Shanghai) Co stock appears to be overvalued.
The current stock price of ¥24.12 is trading 0.7% above its estimated GF Value™ of ¥23.96.
GuruFocus considers Donglai Coating Technology (Shanghai) Co to be Fairly Valued.
Key valuation signals for SHSE:688129:
Gross Margin %: 37.56% (11% below median its 10-year median of 42.28)
GF Value™: ¥23.96 vs. price of ¥24.12 (0.7% above fair value)
Industry Position: 60.2% above the Chemicals median (#293 of 1555)
No single metric tells the full story. See the SHSE:688129 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Donglai Coating Technology (Shanghai) Co Business Description
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