Zhongfu Shenying Carbon Fiber Co (SHSE:688295) 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
Zhongfu Shenying Carbon Fiber Co had a gross margin of 20.42% 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.
Zhongfu Shenying Carbon Fiber Co Gross Margin % Related Terms
Zhongfu Shenying Carbon Fiber 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.
Zhongfu Shenying Carbon Fiber Co Gross Margin % Chart
SHSE:688295 vs LIN, SHW, ECL: Gross Margin % Comparison
For the Specialty Chemicals subindustry, Zhongfu Shenying Carbon Fiber 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.
Zhongfu Shenying Carbon Fiber Co Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Zhongfu Shenying Carbon Fiber Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Zhongfu Shenying Carbon Fiber 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.
Zhongfu Shenying Carbon Fiber Co (SHSE:688295) has a Gross Margin % of 20.42% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Zhongfu Shenying Carbon Fiber Co and its competitors. This is 27% below median its historical median of 28.09. Over the past decade, Zhongfu Shenying Carbon Fiber Co's Gross Margin % has ranged from 11.48 to 48.13. According to the industry distribution chart, Zhongfu Shenying Carbon Fiber Co ranks #905 out of 1555 companies in the Chemicals industry, placing it in the top 58.2%.
Is Zhongfu Shenying Carbon Fiber Co's Gross Margin % too high?
Zhongfu Shenying Carbon Fiber Co's current Gross Margin % of 20.42% is 27% below median its 10-year median of 28.09. Over the past 10 years, this metric has ranged from a low of 11.48 to a high of 48.13. The Chemicals industry median Gross Margin % is 23.44. Zhongfu Shenying Carbon Fiber Co's value of 20.42% is 12.9% below this industry median. Based on the distribution chart, Zhongfu Shenying Carbon Fiber Co ranks #905 out of 1555 companies in the Chemicals industry, which is below the industry midpoint. Overall, Zhongfu Shenying Carbon Fiber Co has a GF Score™ of 75/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zhongfu Shenying Carbon Fiber Co's Gross Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Zhongfu Shenying Carbon Fiber Co ranks #905 out of 1555 companies for Gross Margin %. This places Zhongfu Shenying Carbon Fiber Co in the lower half of its industry. The industry median Gross Margin % is 23.44. Zhongfu Shenying Carbon Fiber Co's value of 20.42% is 12.9% below this benchmark. Historically, Zhongfu Shenying Carbon Fiber Co's own Gross Margin % has ranged from 11.48 to 48.13 over the past decade. While the company's 10-year median is 28.09 vs. the industry median of 23.44, Zhongfu Shenying Carbon Fiber 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 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. Zhongfu Shenying Carbon Fiber Co's current Gross Margin % of 20.42% is 12.9% 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 Zhongfu Shenying Carbon Fiber 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. Zhongfu Shenying Carbon Fiber Co's current Gross Margin % is 20.42%, which is 27% below median its own 10-year median of 28.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhongfu Shenying Carbon Fiber Co stock overvalued right now?
Based on GuruFocus' analysis, Zhongfu Shenying Carbon Fiber Co (SHSE:688295) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥31.75, compared to a current price of ¥48.34 — trading 52.3% above its estimated fair value. The current Gross Margin % is 20.42%, which is 27% below median its 10-year median of 28.09 and 12.9% below the Chemicals industry median of 23.44. Zhongfu Shenying Carbon Fiber Co's overall GF Score™ is 75/100 with 10 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 Zhongfu Shenying Carbon Fiber Co (SHSE:688295), the current Gross Margin % is 20.42% 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 Zhongfu Shenying Carbon Fiber Co (SHSE:688295) Overvalued in 2026?
Based on GuruFocus' analysis, Zhongfu Shenying Carbon Fiber Co stock appears to be overvalued.
The current stock price of ¥48.34 is trading 52.3% above its estimated GF Value™ of ¥31.75.
GuruFocus considers Zhongfu Shenying Carbon Fiber Co to be Significantly Overvalued.
Key valuation signals for SHSE:688295:
Gross Margin %: 20.42% (27% below median its 10-year median of 28.09)
GF Value™: ¥31.75 vs. price of ¥48.34 (52.3% above fair value)
Industry Position: 12.9% below the Chemicals median (#905 of 1555)
No single metric tells the full story. See the SHSE:688295 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhongfu Shenying Carbon Fiber Co Business Description
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