SIHBY's Gross Margin % is ranked better than 82.02% of 1719
companies
in the Construction industry
Industry Median: 20.71
vs SIHBY: 39.27
Shenzhen Investment Holdings Bay Area Development Co had a gross margin of 40.03% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Shenzhen Investment Holdings Bay Area Development Co (OTCPK:SIHBY) 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
Shenzhen Investment Holdings Bay Area Development Co had a gross margin of 40.03% 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.
Shenzhen Investment Holdings Bay Area Development Co Gross Margin % Related Terms
Shenzhen Investment Holdings Bay Area Development 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.
Shenzhen Investment Holdings Bay Area Development Co Gross Margin % Chart
Shenzhen Investment Holdings Bay Area Development 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.
Shenzhen Investment Holdings Bay Area Development Co Gross Margin % vs Construction 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.
Shenzhen Investment Holdings Bay Area Development Co (SIHBY) has a Gross Margin % of 40.03% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Shenzhen Investment Holdings Bay Area Development Co and its competitors. This is near median its historical median of 39.07. Over the past decade, Shenzhen Investment Holdings Bay Area Development Co's Gross Margin % has ranged from 24.05 to 41.97. According to the industry distribution chart, Shenzhen Investment Holdings Bay Area Development Co ranks #309 out of 1719 companies in the Construction industry, placing it in the top 18%.
Is Shenzhen Investment Holdings Bay Area Development Co's Gross Margin % too high?
Shenzhen Investment Holdings Bay Area Development Co's current Gross Margin % of 40.03% is near median its 10-year median of 39.07. Over the past 10 years, this metric has ranged from a low of 24.05 to a high of 41.97. The Construction industry median Gross Margin % is 20.71. Shenzhen Investment Holdings Bay Area Development Co's value of 40.03% is 93.3% above this industry median. Based on the distribution chart, Shenzhen Investment Holdings Bay Area Development Co ranks #309 out of 1719 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Shenzhen Investment Holdings Bay Area Development Co has a GF Score™ of 59/100, reflecting its overall financial health beyond just this single metric.
How does Shenzhen Investment Holdings Bay Area Development Co's Gross Margin % compare to competitors?
According to the Construction industry distribution chart, Shenzhen Investment Holdings Bay Area Development Co ranks #309 out of 1719 companies for Gross Margin %. This places Shenzhen Investment Holdings Bay Area Development Co in the top 18% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 20.71. Shenzhen Investment Holdings Bay Area Development Co's value of 40.03% is 93.3% above this benchmark. Historically, Shenzhen Investment Holdings Bay Area Development Co's own Gross Margin % has ranged from 24.05 to 41.97 over the past decade. While the company's 10-year median is 39.07 vs. the industry median of 20.71, Shenzhen Investment Holdings Bay Area Development 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 Construction company?
The median Gross Margin % among Construction companies is 20.71, based on 1,719 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. Shenzhen Investment Holdings Bay Area Development Co's current Gross Margin % of 40.03% is 93.3% 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 Shenzhen Investment Holdings Bay Area Development Co and its competitors. For the Construction industry, the median Gross Margin % is 20.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shenzhen Investment Holdings Bay Area Development Co's current Gross Margin % is 40.03%, which is near median its own 10-year median of 39.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shenzhen Investment Holdings Bay Area Development Co stock overvalued right now?
Shenzhen Investment Holdings Bay Area Development Co (SIHBY) has a current Gross Margin % of 40.03%. The stock's GF Value™ is $2.18, compared to a current price of $2.40 — trading 10.1% above its estimated fair value. The current Gross Margin % is 40.03%, which is near median its 10-year median of 39.07 and 93.3% above the Construction industry median of 20.71. Shenzhen Investment Holdings Bay Area Development Co's overall GF Score™ is 59/100 with 8 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 Shenzhen Investment Holdings Bay Area Development Co (SIHBY), the current Gross Margin % is 40.03% 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 Shenzhen Investment Holdings Bay Area Development Co (SIHBY) Overvalued in 2026?
Based on GuruFocus' analysis, Shenzhen Investment Holdings Bay Area Development Co stock appears to be overvalued.
The current stock price of $2.40 is trading 10.1% above its estimated GF Value™ of $2.18.
Key valuation signals for SIHBY:
Gross Margin %: 40.03% (near median its 10-year median of 39.07)
GF Value™: $2.18 vs. price of $2.40 (10.1% above fair value)
Industry Position: 93.3% above the Construction median (#309 of 1719)
No single metric tells the full story. See the SIHBY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shenzhen Investment Holdings Bay Area Development Co Business Description
Shenzhen Investment Holdings Bay Area Development Co Ltd is an investment holding company that is engaged in expressway business and adopts development strategies focusing on the infrastructure and correlated business, as well as land development and utilisation along the GS Superhighway within the Guangdong-Hong Kong-Macao Greater Bay Area in China. The company manages its business in four segments, namely the Guangzhou-Shenzhen Superhighway, the Guangzhou-Zhuhai West Superhighway, the Coastal Expressway, and the Xintang Interchange. It generates the majority of the revenue from the Guangzhou-Shenzhen Superhighway segment.
59GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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