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Jiangsu Favored Nanotechnology Co (SHSE:688371) 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
Jiangsu Favored Nanotechnology Co had a gross margin of 29.40% 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.
Jiangsu Favored Nanotechnology Co Gross Margin % Related Terms
Jiangsu Favored Nanotechnology 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.
Jiangsu Favored Nanotechnology Co Gross Margin % Chart
SHSE:688371 vs LIN, SHW, ECL: Gross Margin % Comparison
For the Specialty Chemicals subindustry, Jiangsu Favored Nanotechnology 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.
Jiangsu Favored Nanotechnology Co Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Jiangsu Favored Nanotechnology Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Jiangsu Favored Nanotechnology 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.
Jiangsu Favored Nanotechnology Co (SHSE:688371) has a Gross Margin % of 29.40% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Jiangsu Favored Nanotechnology Co and its competitors. This is 48% below median its historical median of 56.59. Over the past decade, Jiangsu Favored Nanotechnology Co's Gross Margin % has ranged from 44.04 to 79.16. According to the industry distribution chart, Jiangsu Favored Nanotechnology Co ranks #210 out of 1558 companies in the Chemicals industry, placing it in the top 13.5%.
Is Jiangsu Favored Nanotechnology Co's Gross Margin % too high?
Jiangsu Favored Nanotechnology Co's current Gross Margin % of 29.40% is 48% below median its 10-year median of 56.59. Over the past 10 years, this metric has ranged from a low of 44.04 to a high of 79.16. The Chemicals industry median Gross Margin % is 23.55. Jiangsu Favored Nanotechnology Co's value of 29.40% is 24.9% above this industry median. Based on the distribution chart, Jiangsu Favored Nanotechnology Co ranks #210 out of 1558 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Jiangsu Favored Nanotechnology Co has a GF Score™ of 71/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Jiangsu Favored Nanotechnology Co's Gross Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Jiangsu Favored Nanotechnology Co ranks #210 out of 1558 companies for Gross Margin %. This places Jiangsu Favored Nanotechnology Co in the top 14% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 23.55. Jiangsu Favored Nanotechnology Co's value of 29.40% is 24.9% above this benchmark. Historically, Jiangsu Favored Nanotechnology Co's own Gross Margin % has ranged from 44.04 to 79.16 over the past decade. While the company's 10-year median is 56.59 vs. the industry median of 23.55, Jiangsu Favored Nanotechnology 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 23.55, based on 1,558 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. Jiangsu Favored Nanotechnology Co's current Gross Margin % of 29.40% is 24.9% 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 Jiangsu Favored Nanotechnology Co and its competitors. For the Chemicals industry, the median Gross Margin % is 23.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Jiangsu Favored Nanotechnology Co's current Gross Margin % is 29.40%, which is 48% below median its own 10-year median of 56.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Jiangsu Favored Nanotechnology Co stock overvalued right now?
Based on GuruFocus' analysis, Jiangsu Favored Nanotechnology Co (SHSE:688371) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥19.68, compared to a current price of ¥22.99 — trading 16.8% above its estimated fair value. The current Gross Margin % is 29.40%, which is 48% below median its 10-year median of 56.59 and 24.9% above the Chemicals industry median of 23.55. Jiangsu Favored Nanotechnology Co's overall GF Score™ is 71/100 with 2 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 Jiangsu Favored Nanotechnology Co (SHSE:688371), the current Gross Margin % is 29.40% 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 Jiangsu Favored Nanotechnology Co (SHSE:688371) Overvalued in 2026?
Based on GuruFocus' analysis, Jiangsu Favored Nanotechnology Co stock appears to be overvalued.
The current stock price of ¥22.99 is trading 16.8% above its estimated GF Value™ of ¥19.68.
GuruFocus considers Jiangsu Favored Nanotechnology Co to be Modestly Overvalued.
Key valuation signals for SHSE:688371:
Gross Margin %: 29.40% (48% below median its 10-year median of 56.59)
GF Value™: ¥19.68 vs. price of ¥22.99 (16.8% above fair value)
Industry Position: 24.9% above the Chemicals median (#210 of 1558)
No single metric tells the full story. See the SHSE:688371 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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