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Shanghai Rightongene Biotechnology Co (SHSE:688217) 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
Shanghai Rightongene Biotechnology Co had a gross margin of 78.37% for the quarter that ended in Mar. 2026 => Durable 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.
Shanghai Rightongene Biotechnology Co Gross Margin % Related Terms
Shanghai Rightongene Biotechnology 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.
Shanghai Rightongene Biotechnology Co Gross Margin % Chart
SHSE:688217 vs VRTX, REGN, RVMD: Gross Margin % Comparison
For the Biotechnology subindustry, Shanghai Rightongene Biotechnology 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.
Shanghai Rightongene Biotechnology Co Gross Margin % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Shanghai Rightongene Biotechnology Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Shanghai Rightongene Biotechnology 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.
Shanghai Rightongene Biotechnology Co (SHSE:688217) has a Gross Margin % of 78.37% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Shanghai Rightongene Biotechnology Co and its competitors. This is near median its historical median of 73.21. Over the past decade, Shanghai Rightongene Biotechnology Co's Gross Margin % has ranged from 60.80 to 80.58. According to the industry distribution chart, Shanghai Rightongene Biotechnology Co ranks #248 out of 735 companies in the Biotechnology industry, placing it in the top 33.7%.
Is Shanghai Rightongene Biotechnology Co's Gross Margin % too high?
Shanghai Rightongene Biotechnology Co's current Gross Margin % of 78.37% is near median its 10-year median of 73.21. Over the past 10 years, this metric has ranged from a low of 60.80 to a high of 80.58. The Biotechnology industry median Gross Margin % is 60.91. Shanghai Rightongene Biotechnology Co's value of 78.37% is 28.7% above this industry median. Based on the distribution chart, Shanghai Rightongene Biotechnology Co ranks #248 out of 735 companies in the Biotechnology industry, which is above the industry midpoint. Overall, Shanghai Rightongene Biotechnology Co has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shanghai Rightongene Biotechnology Co's Gross Margin % compare to VRTX and REGN?
According to the Biotechnology industry distribution chart, Shanghai Rightongene Biotechnology Co ranks #248 out of 735 companies for Gross Margin %. This puts Shanghai Rightongene Biotechnology Co in the upper half of its industry. The industry median Gross Margin % is 60.91. Shanghai Rightongene Biotechnology Co's value of 78.37% is 28.7% above this benchmark. Historically, Shanghai Rightongene Biotechnology Co's own Gross Margin % has ranged from 60.80 to 80.58 over the past decade. While the company's 10-year median is 73.21 vs. the industry median of 60.91, Shanghai Rightongene Biotechnology 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 Biotechnology company?
The median Gross Margin % among Biotechnology companies is 60.91, based on 735 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. Shanghai Rightongene Biotechnology Co's current Gross Margin % of 78.37% is 28.7% 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 Shanghai Rightongene Biotechnology Co and its competitors. For the Biotechnology industry, the median Gross Margin % is 60.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shanghai Rightongene Biotechnology Co's current Gross Margin % is 78.37%, which is near median its own 10-year median of 73.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanghai Rightongene Biotechnology Co stock overvalued right now?
Based on GuruFocus' analysis, Shanghai Rightongene Biotechnology Co (SHSE:688217) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥15.00, compared to a current price of ¥24.70 — trading 64.7% above its estimated fair value. The current Gross Margin % is 78.37%, which is near median its 10-year median of 73.21 and 28.7% above the Biotechnology industry median of 60.91. Shanghai Rightongene Biotechnology Co's overall GF Score™ is 62/100 with 1 warning sign 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 Shanghai Rightongene Biotechnology Co (SHSE:688217), the current Gross Margin % is 78.37% 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 Shanghai Rightongene Biotechnology Co (SHSE:688217) Overvalued in 2026?
Based on GuruFocus' analysis, Shanghai Rightongene Biotechnology Co stock appears to be overvalued.
The current stock price of ¥24.70 is trading 64.7% above its estimated GF Value™ of ¥15.00.
GuruFocus considers Shanghai Rightongene Biotechnology Co to be Significantly Overvalued.
Key valuation signals for SHSE:688217:
Gross Margin %: 78.37% (near median its 10-year median of 73.21)
GF Value™: ¥15.00 vs. price of ¥24.70 (64.7% above fair value)
Industry Position: 28.7% above the Biotechnology median (#248 of 735)
No single metric tells the full story. See the SHSE:688217 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shanghai Rightongene Biotechnology Co Ltd is engaged in the research and development, production, sales, scientific research and testing services of in vitro diagnostic products.
62GF Score
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