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Chengdu KSW Technologies Co (SHSE:688283) 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
Chengdu KSW Technologies Co had a gross margin of 62.04% 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.
Chengdu KSW Technologies Co Gross Margin % Related Terms
Chengdu KSW Technologies 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.
SHSE:688283 vs CSCO, CIEN, MSI: Gross Margin % Comparison
For the Communication Equipment subindustry, Chengdu KSW Technologies 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.
Chengdu KSW Technologies Co Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Chengdu KSW Technologies Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Chengdu KSW Technologies 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.
Chengdu KSW Technologies Co (SHSE:688283) has a Gross Margin % of 62.04% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Chengdu KSW Technologies Co and its competitors. This is near median its historical median of 66.37. Over the past decade, Chengdu KSW Technologies Co's Gross Margin % has ranged from 55.89 to 69.49. According to the industry distribution chart, Chengdu KSW Technologies Co ranks #144 out of 2455 companies in the Hardware industry, placing it in the top 5.9%.
Is Chengdu KSW Technologies Co's Gross Margin % too high?
Chengdu KSW Technologies Co's current Gross Margin % of 62.04% is near median its 10-year median of 66.37. Over the past 10 years, this metric has ranged from a low of 55.89 to a high of 69.49. The Hardware industry median Gross Margin % is 24.50. Chengdu KSW Technologies Co's value of 62.04% is 153.2% above this industry median. Based on the distribution chart, Chengdu KSW Technologies Co ranks #144 out of 2455 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Chengdu KSW Technologies Co has a GF Score™ of 93/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Chengdu KSW Technologies Co's Gross Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Chengdu KSW Technologies Co ranks #144 out of 2455 companies for Gross Margin %. This places Chengdu KSW Technologies Co in the top 6% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 24.50. Chengdu KSW Technologies Co's value of 62.04% is 153.2% above this benchmark. Historically, Chengdu KSW Technologies Co's own Gross Margin % has ranged from 55.89 to 69.49 over the past decade. While the company's 10-year median is 66.37 vs. the industry median of 24.50, Chengdu KSW Technologies 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 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. Chengdu KSW Technologies Co's current Gross Margin % of 62.04% is 153.2% 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 Chengdu KSW Technologies 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. Chengdu KSW Technologies Co's current Gross Margin % is 62.04%, which is near median its own 10-year median of 66.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chengdu KSW Technologies Co stock overvalued right now?
Based on GuruFocus' analysis, Chengdu KSW Technologies Co (SHSE:688283) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥33.62, compared to a current price of ¥26.42 — trading 21.4% below its estimated fair value. The current Gross Margin % is 62.04%, which is near median its 10-year median of 66.37 and 153.2% above the Hardware industry median of 24.50. Chengdu KSW Technologies Co's overall GF Score™ is 93/100 with 8 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 Chengdu KSW Technologies Co (SHSE:688283), the current Gross Margin % is 62.04% 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 Chengdu KSW Technologies Co (SHSE:688283) Overvalued in 2026?
Based on GuruFocus' analysis, Chengdu KSW Technologies Co stock appears to be undervalued.
The current stock price of ¥26.42 is trading 21.4% below its estimated GF Value™ of ¥33.62.
GuruFocus considers Chengdu KSW Technologies Co to be Modestly Undervalued.
Key valuation signals for SHSE:688283:
Gross Margin %: 62.04% (near median its 10-year median of 66.37)
GF Value™: ¥33.62 vs. price of ¥26.42 (21.4% below fair value)
Industry Position: 153.2% above the Hardware median (#144 of 2455)
No single metric tells the full story. See the SHSE:688283 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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