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SHSE:688425's Gross Margin % is ranked better than 53.37% of 2996
companies
in the Industrial Products industry
Industry Median: 26.8
vs SHSE:688425: 28.16
China Railway Construction Heavy Industry had a gross margin of 26.39% for the quarter that ended in Mar. 2026 => Competition eroding margins
China Railway Construction Heavy Industry (SHSE:688425) 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
China Railway Construction Heavy Industry had a gross margin of 26.39% 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.
China Railway Construction Heavy Industry Gross Margin % Related Terms
China Railway Construction Heavy Industry 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.
China Railway Construction Heavy Industry Gross Margin % Chart
China Railway Construction Heavy Industry Annual Data
SHSE:688425 vs GEV, ETN, PH: Gross Margin % Comparison
For the Specialty Industrial Machinery subindustry, China Railway Construction Heavy Industry'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.
China Railway Construction Heavy Industry Gross Margin % vs Industrial Products 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.
China Railway Construction Heavy Industry (SHSE:688425) has a Gross Margin % of 26.39% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on China Railway Construction Heavy Industry and its competitors. This is 20% below median its historical median of 33.13. Over the past decade, China Railway Construction Heavy Industry's Gross Margin % has ranged from 28.16 to 35.16. According to the industry distribution chart, China Railway Construction Heavy Industry ranks #1397 out of 2996 companies in the Industrial Products industry, placing it in the top 46.6%.
Is China Railway Construction Heavy Industry's Gross Margin % too high?
China Railway Construction Heavy Industry's current Gross Margin % of 26.39% is 20% below median its 10-year median of 33.13. Over the past 10 years, this metric has ranged from a low of 28.16 to a high of 35.16. The Industrial Products industry median Gross Margin % is 26.80. China Railway Construction Heavy Industry's value of 26.39% is 1.5% below this industry median. Based on the distribution chart, China Railway Construction Heavy Industry ranks #1397 out of 2996 companies in the Industrial Products industry, which is above the industry midpoint. Overall, China Railway Construction Heavy Industry has a GF Score™ of 82/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Railway Construction Heavy Industry's Gross Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, China Railway Construction Heavy Industry ranks #1397 out of 2996 companies for Gross Margin %. This puts China Railway Construction Heavy Industry in the upper half of its industry. The industry median Gross Margin % is 26.80. China Railway Construction Heavy Industry's value of 26.39% is 1.5% below this benchmark. Historically, China Railway Construction Heavy Industry's own Gross Margin % has ranged from 28.16 to 35.16 over the past decade. While the company's 10-year median is 33.13 vs. the industry median of 26.80, China Railway Construction Heavy Industry 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.80, based on 2,996 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. China Railway Construction Heavy Industry's current Gross Margin % of 26.39% is 1.5% 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 China Railway Construction Heavy Industry and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Railway Construction Heavy Industry's current Gross Margin % is 26.39%, which is 20% below median its own 10-year median of 33.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Railway Construction Heavy Industry stock overvalued right now?
Based on GuruFocus' analysis, China Railway Construction Heavy Industry (SHSE:688425) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥4.84, compared to a current price of ¥4.17 — trading 13.8% below its estimated fair value. The current Gross Margin % is 26.39%, which is 20% below median its 10-year median of 33.13 and 1.5% below the Industrial Products industry median of 26.80. China Railway Construction Heavy Industry's overall GF Score™ is 82/100 with 5 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 China Railway Construction Heavy Industry (SHSE:688425), the current Gross Margin % is 26.39% 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 China Railway Construction Heavy Industry (SHSE:688425) Overvalued in 2026?
Based on GuruFocus' analysis, China Railway Construction Heavy Industry stock appears to be undervalued.
The current stock price of ¥4.17 is trading 13.8% below its estimated GF Value™ of ¥4.84.
GuruFocus considers China Railway Construction Heavy Industry to be Modestly Undervalued.
Key valuation signals for SHSE:688425:
Gross Margin %: 26.39% (20% below median its 10-year median of 33.13)
GF Value™: ¥4.84 vs. price of ¥4.17 (13.8% below fair value)
Industry Position: 1.5% below the Industrial Products median (#1397 of 2996)
No single metric tells the full story. See the SHSE:688425 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Railway Construction Heavy Industry Business Description
China Railway Construction Heavy Industry Corp Ltd is engaged in the design, research and development, manufacturing, sales, leasing and service of roadheader equipment, rail transit equipment and special professional equipment.
82GF Score
Get the complete analysis for SHSE:688425
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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