Shanghai Gentech CoSHSE:688596 +5.82%79 Gross Margin % is 18.23% as of Mar. 2026, which is 30% below its 10-year median of 26.08. GuruFocus rates SHSE:688596 with a GF Score™ of 79/100 and a GF Value™ of ¥45.95 (Significantly Overvalued). The stock has 17 warning signs investors should review. Among 2,997 Industrial Products companies, Shanghai Gentech Co ranks worse than 69.07% on this metric.
Shanghai Gentech Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -3.8%.
The historical rank and industry rank for Shanghai Gentech Co's Gross Margin % or its related term are showing as below:
SHSE:688596'
s Gross Margin % Range Over the Past 10 Years
Min: 19.78 Med: 26.08 Max: 27.46
Current: 19.78
During the past 13 years, the highestGross Margin % of Shanghai Gentech Co was 27.46%. The lowest was 19.78%. And the median was 26.08%.
SHSE:688596's Gross Margin % is ranked worse than 69.07% of 2997
companies
in the Industrial Products industry
Industry Median: 26.79
vs SHSE:688596: 19.78
Shanghai Gentech Co had a gross margin of 18.23% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Shanghai Gentech Co was -3.80% per year.
Shanghai Gentech Co (SHSE:688596) 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
Shanghai Gentech Co had a gross margin of 18.23% for the quarter that ended in Mar. 2026 => No sustainable 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.
Shanghai Gentech Co Gross Margin % Related Terms
Shanghai Gentech Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Shanghai Gentech Co's Gross Margin % can be seen below:
* 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.
SHSE:688596 vs GEV, ETN, PH: Gross Margin % Comparison
For the Specialty Industrial Machinery subindustry, Shanghai Gentech 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.
Shanghai Gentech Co Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Shanghai Gentech Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Shanghai Gentech 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.
Shanghai Gentech Co (SHSE:688596) has a Gross Margin % of 18.23% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Shanghai Gentech Co and its competitors. This is 30% below median its historical median of 26.08. Over the past decade, Shanghai Gentech Co's Gross Margin % has ranged from 19.78 to 27.46. According to the industry distribution chart, Shanghai Gentech Co ranks #2070 out of 2997 companies in the Industrial Products industry, placing it in the top 69.1%.
Is Shanghai Gentech Co's Gross Margin % too high?
Shanghai Gentech Co's current Gross Margin % of 18.23% is 30% below median its 10-year median of 26.08. Over the past 10 years, this metric has ranged from a low of 19.78 to a high of 27.46. The Industrial Products industry median Gross Margin % is 26.79. Shanghai Gentech Co's value of 18.23% is 32% below this industry median. Based on the distribution chart, Shanghai Gentech Co ranks #2070 out of 2997 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Shanghai Gentech Co has a GF Score™ of 79/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shanghai Gentech Co's Gross Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Shanghai Gentech Co ranks #2070 out of 2997 companies for Gross Margin %. This places Shanghai Gentech Co in the lower half of its industry. The industry median Gross Margin % is 26.79. Shanghai Gentech Co's value of 18.23% is 32% below this benchmark. Historically, Shanghai Gentech Co's own Gross Margin % has ranged from 19.78 to 27.46 over the past decade. While the company's 10-year median is 26.08 vs. the industry median of 26.79, Shanghai Gentech 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 Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.79, based on 2,997 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. Shanghai Gentech Co's current Gross Margin % of 18.23% is 32% 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 Shanghai Gentech Co and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shanghai Gentech Co's current Gross Margin % is 18.23%, which is 30% below median its own 10-year median of 26.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanghai Gentech Co stock overvalued right now?
Based on GuruFocus' analysis, Shanghai Gentech Co (SHSE:688596) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥45.95, compared to a current price of ¥83.66 — trading 82.1% above its estimated fair value. The current Gross Margin % is 18.23%, which is 30% below median its 10-year median of 26.08 and 32% below the Industrial Products industry median of 26.79. Shanghai Gentech Co's overall GF Score™ is 79/100 with 17 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 Shanghai Gentech Co (SHSE:688596), the current Gross Margin % is 18.23% 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 Shanghai Gentech Co (SHSE:688596) Overvalued in 2026?
Based on GuruFocus' analysis, Shanghai Gentech Co stock appears to be overvalued.
The current stock price of ¥83.66 is trading 82.1% above its estimated GF Value™ of ¥45.95.
GuruFocus considers Shanghai Gentech Co to be Significantly Overvalued.
Key valuation signals for SHSE:688596:
Gross Margin %: 18.23% (30% below median its 10-year median of 26.08)
GF Value™: ¥45.95 vs. price of ¥83.66 (82.1% above fair value)
Industry Position: 32% below the Industrial Products median (#2070 of 2997)
No single metric tells the full story. See the SHSE:688596 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shanghai Gentech Co Ltd is engaged in designing, production, installation and supporting services of gas chemical supply system. The company is also engaged in designing and installation of water treatment systems, recycling system, clean fluid system, and other systems.
79GF Score
Get the complete analysis for SHSE:688596
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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