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Shanghai ChemspecSHSE:688602 +0.95%74 Gross Margin % is 15.51% as of Mar. 2026, which is 57% below its 10-year median of 36.38. GuruFocus rates SHSE:688602 with a GF Score™ of 74/100 and a GF Value™ of ¥6.27 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,560 Chemicals companies, Shanghai Chemspec ranks worse than 80.45% on this metric.
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 Chemspec had a gross margin of 15.51% 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 Chemspec Gross Margin % Related Terms
Shanghai Chemspec Gross Margin % Historical Data
* Premium members only.
The historical data trend for Shanghai Chemspec'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.
For the Chemicals subindustry, Shanghai Chemspec'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 Chemspec Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Shanghai Chemspec's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Shanghai Chemspec'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 Chemspec (SHSE:688602) has a Gross Margin % of 15.51% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Shanghai Chemspec and its competitors. This is 57% below median its historical median of 36.38. Over the past decade, Shanghai Chemspec's Gross Margin % has ranged from 11.39 to 42.41. According to the industry distribution chart, Shanghai Chemspec ranks #1255 out of 1560 companies in the Chemicals industry, placing it in the top 80.4%.
Is Shanghai Chemspec's Gross Margin % too high?
Shanghai Chemspec's current Gross Margin % of 15.51% is 57% below median its 10-year median of 36.38. Over the past 10 years, this metric has ranged from a low of 11.39 to a high of 42.41. The Chemicals industry median Gross Margin % is 23.55. Shanghai Chemspec's value of 15.51% is 34.1% below this industry median. Based on the distribution chart, Shanghai Chemspec ranks #1255 out of 1560 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Shanghai Chemspec has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Shanghai Chemspec's Gross Margin % compare to DOW?
According to the Chemicals industry distribution chart, Shanghai Chemspec ranks #1255 out of 1560 companies for Gross Margin %. This places Shanghai Chemspec in the lower half of its industry. The industry median Gross Margin % is 23.55. Shanghai Chemspec's value of 15.51% is 34.1% below this benchmark. Historically, Shanghai Chemspec's own Gross Margin % has ranged from 11.39 to 42.41 over the past decade. While the company's 10-year median is 36.38 vs. the industry median of 23.55, Shanghai Chemspec 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 a Chemicals company?
The median Gross Margin % among Chemicals companies is 23.55, based on 1,560 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 Chemspec's current Gross Margin % of 15.51% is 34.1% 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 Chemspec and its competitors. For the Chemicals industry, the median Gross Margin % is 23.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shanghai Chemspec's current Gross Margin % is 15.51%, which is 57% below median its own 10-year median of 36.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanghai Chemspec stock overvalued right now?
Based on GuruFocus' analysis, Shanghai Chemspec (SHSE:688602) is currently considered Fairly Valued. The stock's GF Value™ is ¥6.27, compared to a current price of ¥6.39 — trading 1.9% above its estimated fair value. The current Gross Margin % is 15.51%, which is 57% below median its 10-year median of 36.38 and 34.1% below the Chemicals industry median of 23.55. Shanghai Chemspec's overall GF Score™ is 74/100 with 2 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 Chemspec (SHSE:688602), the current Gross Margin % is 15.51% 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 Chemspec (SHSE:688602) Overvalued in 2026?
Based on GuruFocus' analysis, Shanghai Chemspec stock appears to be overvalued.
The current stock price of ¥6.39 is trading 1.9% above its estimated GF Value™ of ¥6.27.
GuruFocus considers Shanghai Chemspec to be Fairly Valued.
Key valuation signals for SHSE:688602:
Gross Margin %: 15.51% (57% below median its 10-year median of 36.38)
GF Value™: ¥6.27 vs. price of ¥6.39 (1.9% above fair value)
Industry Position: 34.1% below the Chemicals median (#1255 of 1560)
No single metric tells the full story. See the SHSE:688602 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shanghai Chemspec Corp is engaged in research & development, production and sales of fine chemicals. It is globally recognized as an industry leader in providing fluorinated specialty chemicals serving markets in a variety of applications. These include liquid crystals, lithium-ion battery components, pharmaceutical chemicals, and agrochemicals.
74GF Score
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