SHSE:688697's Gross Margin % is ranked worse than 66.54% of 2998
companies
in the Industrial Products industry
Industry Median: 26.84
vs SHSE:688697: 20.89
Neway CNC Equipment (Suzhou) Co had a gross margin of 21.04% for the quarter that ended in Mar. 2026 => Competition eroding margins
Neway CNC Equipment (Suzhou) Co (SHSE:688697) 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
Neway CNC Equipment (Suzhou) Co had a gross margin of 21.04% 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.
Neway CNC Equipment (Suzhou) Co Gross Margin % Related Terms
Neway CNC Equipment (Suzhou) 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.
Neway CNC Equipment (Suzhou) Co Gross Margin % Chart
SHSE:688697 vs GEV, ETN, PH: Gross Margin % Comparison
For the Specialty Industrial Machinery subindustry, Neway CNC Equipment (Suzhou) 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.
Neway CNC Equipment (Suzhou) Co Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Neway CNC Equipment (Suzhou) Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Neway CNC Equipment (Suzhou) 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.
Neway CNC Equipment (Suzhou) Co (SHSE:688697) has a Gross Margin % of 21.04% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Neway CNC Equipment (Suzhou) Co and its competitors. This is 17% below median its historical median of 25.27. Over the past decade, Neway CNC Equipment (Suzhou) Co's Gross Margin % has ranged from 20.89 to 27.49. According to the industry distribution chart, Neway CNC Equipment (Suzhou) Co ranks #1995 out of 2998 companies in the Industrial Products industry, placing it in the top 66.5%.
Is Neway CNC Equipment (Suzhou) Co's Gross Margin % too high?
Neway CNC Equipment (Suzhou) Co's current Gross Margin % of 21.04% is 17% below median its 10-year median of 25.27. Over the past 10 years, this metric has ranged from a low of 20.89 to a high of 27.49. The Industrial Products industry median Gross Margin % is 26.84. Neway CNC Equipment (Suzhou) Co's value of 21.04% is 21.6% below this industry median. Based on the distribution chart, Neway CNC Equipment (Suzhou) Co ranks #1995 out of 2998 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Neway CNC Equipment (Suzhou) Co has a GF Score™ of 92/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Neway CNC Equipment (Suzhou) Co's Gross Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Neway CNC Equipment (Suzhou) Co ranks #1995 out of 2998 companies for Gross Margin %. This places Neway CNC Equipment (Suzhou) Co in the lower half of its industry. The industry median Gross Margin % is 26.84. Neway CNC Equipment (Suzhou) Co's value of 21.04% is 21.6% below this benchmark. Historically, Neway CNC Equipment (Suzhou) Co's own Gross Margin % has ranged from 20.89 to 27.49 over the past decade. While the company's 10-year median is 25.27 vs. the industry median of 26.84, Neway CNC Equipment (Suzhou) 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 26.84, based on 2,998 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. Neway CNC Equipment (Suzhou) Co's current Gross Margin % of 21.04% is 21.6% 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 Neway CNC Equipment (Suzhou) Co and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Neway CNC Equipment (Suzhou) Co's current Gross Margin % is 21.04%, which is 17% below median its own 10-year median of 25.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Neway CNC Equipment (Suzhou) Co stock overvalued right now?
Based on GuruFocus' analysis, Neway CNC Equipment (Suzhou) Co (SHSE:688697) is currently considered Fairly Valued. The stock's GF Value™ is ¥13.00, compared to a current price of ¥12.27 — trading 5.6% below its estimated fair value. The current Gross Margin % is 21.04%, which is 17% below median its 10-year median of 25.27 and 21.6% below the Industrial Products industry median of 26.84. Neway CNC Equipment (Suzhou) Co's overall GF Score™ is 92/100 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 Neway CNC Equipment (Suzhou) Co (SHSE:688697), the current Gross Margin % is 21.04% 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 Neway CNC Equipment (Suzhou) Co (SHSE:688697) Overvalued in 2026?
Based on GuruFocus' analysis, Neway CNC Equipment (Suzhou) Co stock appears to be undervalued.
The current stock price of ¥12.27 is trading 5.6% below its estimated GF Value™ of ¥13.00.
GuruFocus considers Neway CNC Equipment (Suzhou) Co to be Fairly Valued.
Key valuation signals for SHSE:688697:
Gross Margin %: 21.04% (17% below median its 10-year median of 25.27)
GF Value™: ¥13.00 vs. price of ¥12.27 (5.6% below fair value)
Industry Position: 21.6% below the Industrial Products median (#1995 of 2998)
No single metric tells the full story. See the SHSE:688697 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Neway CNC Equipment (Suzhou) Co Business Description
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