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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Shenzhen Sine Electric CoSHSE:688395 +2.69%71 Gross Margin % is 32.94% as of Mar. 2026, which is 4% below its 10-year median of 34.42. GuruFocus rates SHSE:688395 with a GF Score™ of 71/100 and a GF Value™ of ¥31.80 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 2,999 Industrial Products companies, Shenzhen Sine Electric Co ranks better than 65.92% on this metric.
SHSE:688395's Gross Margin % is ranked better than 65.92% of 2999
companies
in the Industrial Products industry
Industry Median: 26.83
vs SHSE:688395: 33.11
Shenzhen Sine Electric Co had a gross margin of 32.94% for the quarter that ended in Mar. 2026 => Competition eroding margins
Shenzhen Sine Electric Co (SHSE:688395) 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
Shenzhen Sine Electric Co had a gross margin of 32.94% 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.
Shenzhen Sine Electric Co Gross Margin % Related Terms
Shenzhen Sine Electric 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.
For the Electrical Equipment & Parts subindustry, Shenzhen Sine Electric 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.
Shenzhen Sine Electric Co Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Shenzhen Sine Electric Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Shenzhen Sine Electric 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.
Shenzhen Sine Electric Co (SHSE:688395) has a Gross Margin % of 32.94% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Shenzhen Sine Electric Co and its competitors. This is near median its historical median of 34.42. Over the past decade, Shenzhen Sine Electric Co's Gross Margin % has ranged from 28.61 to 38.19. According to the industry distribution chart, Shenzhen Sine Electric Co ranks #1022 out of 2999 companies in the Industrial Products industry, placing it in the top 34.1%.
Is Shenzhen Sine Electric Co's Gross Margin % too high?
Shenzhen Sine Electric Co's current Gross Margin % of 32.94% is near median its 10-year median of 34.42. Over the past 10 years, this metric has ranged from a low of 28.61 to a high of 38.19. The Industrial Products industry median Gross Margin % is 26.83. Shenzhen Sine Electric Co's value of 32.94% is 22.8% above this industry median. Based on the distribution chart, Shenzhen Sine Electric Co ranks #1022 out of 2999 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Shenzhen Sine Electric Co has a GF Score™ of 71/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Shenzhen Sine Electric Co's Gross Margin % compare to VRT and BE?
According to the Industrial Products industry distribution chart, Shenzhen Sine Electric Co ranks #1022 out of 2999 companies for Gross Margin %. This puts Shenzhen Sine Electric Co in the upper half of its industry. The industry median Gross Margin % is 26.83. Shenzhen Sine Electric Co's value of 32.94% is 22.8% above this benchmark. Historically, Shenzhen Sine Electric Co's own Gross Margin % has ranged from 28.61 to 38.19 over the past decade. While the company's 10-year median is 34.42 vs. the industry median of 26.83, Shenzhen Sine Electric 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.83, based on 2,999 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. Shenzhen Sine Electric Co's current Gross Margin % of 32.94% is 22.8% 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 Shenzhen Sine Electric Co and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shenzhen Sine Electric Co's current Gross Margin % is 32.94%, which is near median its own 10-year median of 34.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shenzhen Sine Electric Co stock overvalued right now?
Based on GuruFocus' analysis, Shenzhen Sine Electric Co (SHSE:688395) is currently considered Possible Value Trap. The stock's GF Value™ is ¥31.80, compared to a current price of ¥19.82 — trading 37.7% below its estimated fair value. The current Gross Margin % is 32.94%, which is near median its 10-year median of 34.42 and 22.8% above the Industrial Products industry median of 26.83. Shenzhen Sine Electric Co's overall GF Score™ is 71/100 with 4 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 Shenzhen Sine Electric Co (SHSE:688395), the current Gross Margin % is 32.94% 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 Shenzhen Sine Electric Co (SHSE:688395) Overvalued in 2026?
Based on GuruFocus' analysis, Shenzhen Sine Electric Co stock appears to be undervalued.
The current stock price of ¥19.82 is trading 37.7% below its estimated GF Value™ of ¥31.80.
GuruFocus considers Shenzhen Sine Electric Co to be Possible Value Trap.
Key valuation signals for SHSE:688395:
Gross Margin %: 32.94% (near median its 10-year median of 34.42)
GF Value™: ¥31.80 vs. price of ¥19.82 (37.7% below fair value)
Industry Position: 22.8% above the Industrial Products median (#1022 of 2999)
No single metric tells the full story. See the SHSE:688395 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shenzhen Sine Electric Co Ltd is engaged in the research and development, production, and sales of motor drive and control system products in the field of industrial automation. It mainly provides inverters, integrated special machines, servo system products, and system solutions for mechanical equipment manufacturers and electronic control system integrators. Along with its domestic market business, the company also exports its products to Southeast Asia, the Middle East, Eastern Europe, South America, Africa, and other regions.
71GF Score
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