Chengdu Easton Biopharmaceuticals Co (SHSE:688513) 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
Chengdu Easton Biopharmaceuticals Co had a gross margin of 77.44% for the quarter that ended in Mar. 2026 => Durable competitive advantage
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.
Chengdu Easton Biopharmaceuticals Co Gross Margin % Related Terms
Chengdu Easton Biopharmaceuticals 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.
Chengdu Easton Biopharmaceuticals Co Gross Margin % Chart
SHSE:688513 vs VRTX, REGN, ALNY: Gross Margin % Comparison
For the Biotechnology subindustry, Chengdu Easton Biopharmaceuticals 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.
Chengdu Easton Biopharmaceuticals Co Gross Margin % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Chengdu Easton Biopharmaceuticals Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Chengdu Easton Biopharmaceuticals 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.
Chengdu Easton Biopharmaceuticals Co (SHSE:688513) has a Gross Margin % of 77.44% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Chengdu Easton Biopharmaceuticals Co and its competitors. This is near median its historical median of 84.15. Over the past decade, Chengdu Easton Biopharmaceuticals Co's Gross Margin % has ranged from 74.90 to 90.25. According to the industry distribution chart, Chengdu Easton Biopharmaceuticals Co ranks #246 out of 730 companies in the Biotechnology industry, placing it in the top 33.7%.
Is Chengdu Easton Biopharmaceuticals Co's Gross Margin % too high?
Chengdu Easton Biopharmaceuticals Co's current Gross Margin % of 77.44% is near median its 10-year median of 84.15. Over the past 10 years, this metric has ranged from a low of 74.90 to a high of 90.25. The Biotechnology industry median Gross Margin % is 60.91. Chengdu Easton Biopharmaceuticals Co's value of 77.44% is 27.1% above this industry median. Based on the distribution chart, Chengdu Easton Biopharmaceuticals Co ranks #246 out of 730 companies in the Biotechnology industry, which is above the industry midpoint. Overall, Chengdu Easton Biopharmaceuticals Co has a GF Score™ of 95/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Chengdu Easton Biopharmaceuticals Co's Gross Margin % compare to VRTX and REGN?
According to the Biotechnology industry distribution chart, Chengdu Easton Biopharmaceuticals Co ranks #246 out of 730 companies for Gross Margin %. This puts Chengdu Easton Biopharmaceuticals Co in the upper half of its industry. The industry median Gross Margin % is 60.91. Chengdu Easton Biopharmaceuticals Co's value of 77.44% is 27.1% above this benchmark. Historically, Chengdu Easton Biopharmaceuticals Co's own Gross Margin % has ranged from 74.90 to 90.25 over the past decade. While the company's 10-year median is 84.15 vs. the industry median of 60.91, Chengdu Easton Biopharmaceuticals 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 Biotechnology company?
The median Gross Margin % among Biotechnology companies is 60.91, based on 730 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. Chengdu Easton Biopharmaceuticals Co's current Gross Margin % of 77.44% is 27.1% 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 Chengdu Easton Biopharmaceuticals Co and its competitors. For the Biotechnology industry, the median Gross Margin % is 60.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chengdu Easton Biopharmaceuticals Co's current Gross Margin % is 77.44%, which is near median its own 10-year median of 84.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chengdu Easton Biopharmaceuticals Co stock overvalued right now?
Based on GuruFocus' analysis, Chengdu Easton Biopharmaceuticals Co (SHSE:688513) is currently considered Fairly Valued. The stock's GF Value™ is ¥47.94, compared to a current price of ¥51.50 — trading 7.4% above its estimated fair value. The current Gross Margin % is 77.44%, which is near median its 10-year median of 84.15 and 27.1% above the Biotechnology industry median of 60.91. Chengdu Easton Biopharmaceuticals Co's overall GF Score™ is 95/100 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 Chengdu Easton Biopharmaceuticals Co (SHSE:688513), the current Gross Margin % is 77.44% 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 Chengdu Easton Biopharmaceuticals Co (SHSE:688513) Overvalued in 2026?
Based on GuruFocus' analysis, Chengdu Easton Biopharmaceuticals Co stock appears to be overvalued.
The current stock price of ¥51.50 is trading 7.4% above its estimated GF Value™ of ¥47.94.
GuruFocus considers Chengdu Easton Biopharmaceuticals Co to be Fairly Valued.
Key valuation signals for SHSE:688513:
Gross Margin %: 77.44% (near median its 10-year median of 84.15)
GF Value™: ¥47.94 vs. price of ¥51.50 (7.4% above fair value)
Industry Position: 27.1% above the Biotechnology median (#246 of 730)
No single metric tells the full story. See the SHSE:688513 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chengdu Easton Biopharmaceuticals Co Business Description
Chengdu Easton Biopharmaceuticals Co Ltd is engaged in research and development, production and sales of chemical raw materials and chemical pharmaceutical preparations. The company's products range from Active Pharmaceutical Ingredient to finish dosage forms like capsules, tablets and injections, enabling us to take R&D discovery to industrial level, solving problems during the course of R&D, production and distribution. Its products are categorized under Active Pharmaceutical Ingredients and Fixed Dose Formulation.
95GF Score
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