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Guangzhounfu Newmaterials Technology Co (SHSE:688359) 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
Guangzhounfu Newmaterials Technology Co had a gross margin of 28.15% 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.
Guangzhounfu Newmaterials Technology Co Gross Margin % Related Terms
Guangzhounfu Newmaterials 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.
Guangzhounfu Newmaterials Technology Co Gross Margin % Chart
Guangzhounfu Newmaterials Technology Co Annual Data
SHSE:688359 vs LIN, SHW, ECL: Gross Margin % Comparison
For the Specialty Chemicals subindustry, Guangzhounfu Newmaterials 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.
Guangzhounfu Newmaterials Technology 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.
Guangzhounfu Newmaterials Technology Co (SHSE:688359) has a Gross Margin % of 28.15% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Guangzhounfu Newmaterials Technology Co and its competitors. This is 26% below median its historical median of 37.97. Over the past decade, Guangzhounfu Newmaterials Technology Co's Gross Margin % has ranged from 29.87 to 48.31. According to the industry distribution chart, Guangzhounfu Newmaterials Technology Co ranks #510 out of 1559 companies in the Chemicals industry, placing it in the top 32.7%.
Is Guangzhounfu Newmaterials Technology Co's Gross Margin % too high?
Guangzhounfu Newmaterials Technology Co's current Gross Margin % of 28.15% is 26% below median its 10-year median of 37.97. Over the past 10 years, this metric has ranged from a low of 29.87 to a high of 48.31. The Chemicals industry median Gross Margin % is 23.52. Guangzhounfu Newmaterials Technology Co's value of 28.15% is 19.7% above this industry median. Based on the distribution chart, Guangzhounfu Newmaterials Technology Co ranks #510 out of 1559 companies in the Chemicals industry, which is above the industry midpoint. Overall, Guangzhounfu Newmaterials Technology Co has a GF Score™ of 56/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Guangzhounfu Newmaterials Technology Co's Gross Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Guangzhounfu Newmaterials Technology Co ranks #510 out of 1559 companies for Gross Margin %. This puts Guangzhounfu Newmaterials Technology Co in the upper half of its industry. The industry median Gross Margin % is 23.52. Guangzhounfu Newmaterials Technology Co's value of 28.15% is 19.7% above this benchmark. Historically, Guangzhounfu Newmaterials Technology Co's own Gross Margin % has ranged from 29.87 to 48.31 over the past decade. While the company's 10-year median is 37.97 vs. the industry median of 23.52, Guangzhounfu Newmaterials Technology 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 23.52, based on 1,559 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. Guangzhounfu Newmaterials Technology Co's current Gross Margin % of 28.15% is 19.7% 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 Guangzhounfu Newmaterials Technology Co and its competitors. For the Chemicals industry, the median Gross Margin % is 23.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Guangzhounfu Newmaterials Technology Co's current Gross Margin % is 28.15%, which is 26% below median its own 10-year median of 37.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Guangzhounfu Newmaterials Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Guangzhounfu Newmaterials Technology Co (SHSE:688359) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥52.16, compared to a current price of ¥105.82 — trading 102.9% above its estimated fair value. The current Gross Margin % is 28.15%, which is 26% below median its 10-year median of 37.97 and 19.7% above the Chemicals industry median of 23.52. Guangzhounfu Newmaterials Technology Co's overall GF Score™ is 56/100 with 7 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 Guangzhounfu Newmaterials Technology Co (SHSE:688359), the current Gross Margin % is 28.15% 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 Guangzhounfu Newmaterials Technology Co (SHSE:688359) Overvalued in 2026?
Based on GuruFocus' analysis, Guangzhounfu Newmaterials Technology Co stock appears to be overvalued.
The current stock price of ¥105.82 is trading 102.9% above its estimated GF Value™ of ¥52.16.
GuruFocus considers Guangzhounfu Newmaterials Technology Co to be Significantly Overvalued.
Key valuation signals for SHSE:688359:
Gross Margin %: 28.15% (26% below median its 10-year median of 37.97)
GF Value™: ¥52.16 vs. price of ¥105.82 (102.9% above fair value)
Industry Position: 19.7% above the Chemicals median (#510 of 1559)
No single metric tells the full story. See the SHSE:688359 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Guangzhounfu Newmaterials Technology Co Business Description
Guangzhou Sanfu Newmaterials Technology Co Ltd is engaged in the research on surface engineering technology and research and development, production, and sales of new environmentally friendly surface engineering special chemicals.
56GF Score
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