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SHSE:688523's Gross Margin % is ranked better than 67.05% of 346
companies
in the Aerospace & Defense industry
Industry Median: 26.77
vs SHSE:688523: 35.66
Hunan Aerospace Huanyu Communication Technology Co had a gross margin of 26.67% for the quarter that ended in Mar. 2026 => Competition eroding margins
Hunan Aerospace Huanyu Communication Technology Co (SHSE:688523) 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
Hunan Aerospace Huanyu Communication Technology Co had a gross margin of 26.67% 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.
Hunan Aerospace Huanyu Communication Technology Co Gross Margin % Related Terms
Hunan Aerospace Huanyu Communication 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.
Hunan Aerospace Huanyu Communication Technology Co Gross Margin % Chart
Hunan Aerospace Huanyu Communication Technology Co Annual Data
* 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.
Hunan Aerospace Huanyu Communication Technology Co Gross Margin % vs Aerospace & Defense 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.
Hunan Aerospace Huanyu Communication Technology Co (SHSE:688523) has a Gross Margin % of 26.67% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Hunan Aerospace Huanyu Communication Technology Co and its competitors. This is 55% below median its historical median of 59.91. Over the past decade, Hunan Aerospace Huanyu Communication Technology Co's Gross Margin % has ranged from 35.66 to 69.92. According to the industry distribution chart, Hunan Aerospace Huanyu Communication Technology Co ranks #114 out of 346 companies in the Aerospace & Defense industry, placing it in the top 32.9%.
Is Hunan Aerospace Huanyu Communication Technology Co's Gross Margin % too high?
Hunan Aerospace Huanyu Communication Technology Co's current Gross Margin % of 26.67% is 55% below median its 10-year median of 59.91. Over the past 10 years, this metric has ranged from a low of 35.66 to a high of 69.92. The Aerospace & Defense industry median Gross Margin % is 26.77. Hunan Aerospace Huanyu Communication Technology Co's value of 26.67% is 0.4% below this industry median. Based on the distribution chart, Hunan Aerospace Huanyu Communication Technology Co ranks #114 out of 346 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, Hunan Aerospace Huanyu Communication Technology Co has a GF Score™ of 73/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hunan Aerospace Huanyu Communication Technology Co's Gross Margin % compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Hunan Aerospace Huanyu Communication Technology Co ranks #114 out of 346 companies for Gross Margin %. This puts Hunan Aerospace Huanyu Communication Technology Co in the upper half of its industry. The industry median Gross Margin % is 26.77. Hunan Aerospace Huanyu Communication Technology Co's value of 26.67% is 0.4% below this benchmark. Historically, Hunan Aerospace Huanyu Communication Technology Co's own Gross Margin % has ranged from 35.66 to 69.92 over the past decade. While the company's 10-year median is 59.91 vs. the industry median of 26.77, Hunan Aerospace Huanyu Communication Technology Co 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 Aerospace & Defense company?
The median Gross Margin % among Aerospace & Defense companies is 26.77, based on 346 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. Hunan Aerospace Huanyu Communication Technology Co's current Gross Margin % of 26.67% is 0.4% 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 Hunan Aerospace Huanyu Communication Technology Co and its competitors. For the Aerospace & Defense industry, the median Gross Margin % is 26.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hunan Aerospace Huanyu Communication Technology Co's current Gross Margin % is 26.67%, which is 55% below median its own 10-year median of 59.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hunan Aerospace Huanyu Communication Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Hunan Aerospace Huanyu Communication Technology Co (SHSE:688523) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥27.26, compared to a current price of ¥42.48 — trading 55.8% above its estimated fair value. The current Gross Margin % is 26.67%, which is 55% below median its 10-year median of 59.91 and 0.4% below the Aerospace & Defense industry median of 26.77. Hunan Aerospace Huanyu Communication Technology Co's overall GF Score™ is 73/100 with 9 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 Hunan Aerospace Huanyu Communication Technology Co (SHSE:688523), the current Gross Margin % is 26.67% 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 Hunan Aerospace Huanyu Communication Technology Co (SHSE:688523) Overvalued in 2026?
Based on GuruFocus' analysis, Hunan Aerospace Huanyu Communication Technology Co stock appears to be overvalued.
The current stock price of ¥42.48 is trading 55.8% above its estimated GF Value™ of ¥27.26.
GuruFocus considers Hunan Aerospace Huanyu Communication Technology Co to be Significantly Overvalued.
Key valuation signals for SHSE:688523:
Gross Margin %: 26.67% (55% below median its 10-year median of 59.91)
GF Value™: ¥27.26 vs. price of ¥42.48 (55.8% above fair value)
Industry Position: 0.4% below the Aerospace & Defense median (#114 of 346)
No single metric tells the full story. See the SHSE:688523 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hunan Aerospace Huanyu Communication Technology Co Business Description
Hunan Aerospace Huanyu Communication Technology Co Ltd is mainly engaged in the research, development, manufacturing, and service of spaceborne high-end microwave communication systems, satellite communication systems, aerospace technology equipment, and high-end composite material parts and components. The company is committed to providing product support and engineering application services for majorily aerospace host units.
73GF Score
Get the complete analysis for SHSE:688523
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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