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Shenzhen Neoway Technology Co (SHSE:688159) 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
Shenzhen Neoway Technology Co had a gross margin of 20.12% 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.
Shenzhen Neoway Technology Co Gross Margin % Related Terms
Shenzhen Neoway 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.
Shenzhen Neoway Technology Co Gross Margin % Chart
SHSE:688159 vs CSCO, CIEN, MSI: Gross Margin % Comparison
For the Communication Equipment subindustry, Shenzhen Neoway 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.
Shenzhen Neoway Technology Co Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Shenzhen Neoway Technology Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Shenzhen Neoway 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.
Shenzhen Neoway Technology Co (SHSE:688159) has a Gross Margin % of 20.12% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Shenzhen Neoway Technology Co and its competitors. This is 32% above median its historical median of 15.26. Over the past decade, Shenzhen Neoway Technology Co's Gross Margin % has ranged from 10.88 to 24.99. According to the industry distribution chart, Shenzhen Neoway Technology Co ranks #1674 out of 2455 companies in the Hardware industry, placing it in the top 68.2%.
Is Shenzhen Neoway Technology Co's Gross Margin % too high?
Shenzhen Neoway Technology Co's current Gross Margin % of 20.12% is 32% above median its 10-year median of 15.26. Over the past 10 years, this metric has ranged from a low of 10.88 to a high of 24.99. The Hardware industry median Gross Margin % is 24.50. Shenzhen Neoway Technology Co's value of 20.12% is 17.9% below this industry median. Based on the distribution chart, Shenzhen Neoway Technology Co ranks #1674 out of 2455 companies in the Hardware industry, which is below the industry midpoint. Overall, Shenzhen Neoway Technology Co has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Shenzhen Neoway Technology Co's Gross Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Shenzhen Neoway Technology Co ranks #1674 out of 2455 companies for Gross Margin %. This places Shenzhen Neoway Technology Co in the lower half of its industry. The industry median Gross Margin % is 24.50. Shenzhen Neoway Technology Co's value of 20.12% is 17.9% below this benchmark. Historically, Shenzhen Neoway Technology Co's own Gross Margin % has ranged from 10.88 to 24.99 over the past decade. While the company's 10-year median is 15.26 vs. the industry median of 24.50, Shenzhen Neoway 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 Hardware company?
The median Gross Margin % among Hardware companies is 24.50, based on 2,455 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. Shenzhen Neoway Technology Co's current Gross Margin % of 20.12% is 17.9% 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 Shenzhen Neoway Technology Co and its competitors. For the Hardware industry, the median Gross Margin % is 24.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shenzhen Neoway Technology Co's current Gross Margin % is 20.12%, which is 32% above median its own 10-year median of 15.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shenzhen Neoway Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Shenzhen Neoway Technology Co (SHSE:688159) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥43.83, compared to a current price of ¥31.45 — trading 28.2% below its estimated fair value. The current Gross Margin % is 20.12%, which is 32% above median its 10-year median of 15.26 and 17.9% below the Hardware industry median of 24.50. Shenzhen Neoway Technology Co's overall GF Score™ is 71/100 with 9 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 Shenzhen Neoway Technology Co (SHSE:688159), the current Gross Margin % is 20.12% 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 Shenzhen Neoway Technology Co (SHSE:688159) Overvalued in 2026?
Based on GuruFocus' analysis, Shenzhen Neoway Technology Co stock appears to be undervalued.
The current stock price of ¥31.45 is trading 28.2% below its estimated GF Value™ of ¥43.83.
GuruFocus considers Shenzhen Neoway Technology Co to be Modestly Undervalued.
Key valuation signals for SHSE:688159:
Gross Margin %: 20.12% (32% above median its 10-year median of 15.26)
GF Value™: ¥43.83 vs. price of ¥31.45 (28.2% below fair value)
Industry Position: 17.9% below the Hardware median (#1674 of 2455)
No single metric tells the full story. See the SHSE:688159 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shenzhen Neoway Technology Co Business Description
Shenzhen Neoway Technology Co Ltd is engaged in production and sales of IoT wireless communication modules, IoT wireless communication terminals and IoT wireless communication solutions. The company provides technical development and sales of electronic products; electronic communication products and communication modules; communication module software and related technical consulting.
71GF Score
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