China Shengmu Organic MilkSTU:7OM -2.70%49 Gross Margin % is 24.95% as of Dec. 2025, which is 26% below its 10-year median of 33.91. GuruFocus rates STU:7OM with a GF Score™ of 49/100 and a GF Value™ of €0.03. The stock has 5 warning signs investors should review. Among 1,899 Consumer Packaged Goods companies, China Shengmu Organic Milk ranks worse than 53.13% on this metric.
STU:7OM's Gross Margin % is ranked worse than 53.13% of 1899
companies
in the Consumer Packaged Goods industry
Industry Median: 26.37
vs STU:7OM: 25.10
China Shengmu Organic Milk had a gross margin of 24.95% for the quarter that ended in Dec. 2025 => Competition eroding margins
China Shengmu Organic Milk (STU:7OM) 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
China Shengmu Organic Milk had a gross margin of 24.95% for the quarter that ended in Dec. 2025 => 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.
China Shengmu Organic Milk Gross Margin % Related Terms
China Shengmu Organic Milk 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.
STU:7OM vs ADM, BG, TSN: Gross Margin % Comparison
For the Farm Products subindustry, China Shengmu Organic Milk'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.
China Shengmu Organic Milk Gross Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, China Shengmu Organic Milk's Gross Margin % distribution charts can be found below:
* The bar in red indicates where China Shengmu Organic Milk'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.
China Shengmu Organic Milk (STU:7OM) has a Gross Margin % of 24.95% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on China Shengmu Organic Milk and its competitors. This is 26% below median its historical median of 33.91. Over the past decade, China Shengmu Organic Milk's Gross Margin % has ranged from 25.10 to 57.42. According to the industry distribution chart, China Shengmu Organic Milk ranks #1009 out of 1899 companies in the Consumer Packaged Goods industry, placing it in the top 53.1%.
Is China Shengmu Organic Milk's Gross Margin % too high?
China Shengmu Organic Milk's current Gross Margin % of 24.95% is 26% below median its 10-year median of 33.91. Over the past 10 years, this metric has ranged from a low of 25.10 to a high of 57.42. The Consumer Packaged Goods industry median Gross Margin % is 26.37. China Shengmu Organic Milk's value of 24.95% is 5.4% below this industry median. Based on the distribution chart, China Shengmu Organic Milk ranks #1009 out of 1899 companies in the Consumer Packaged Goods industry, which is below the industry midpoint. Overall, China Shengmu Organic Milk has a GF Score™ of 49/100, reflecting its overall financial health beyond just this single metric.
How does China Shengmu Organic Milk's Gross Margin % compare to ADM and BG?
According to the Consumer Packaged Goods industry distribution chart, China Shengmu Organic Milk ranks #1009 out of 1899 companies for Gross Margin %. This places China Shengmu Organic Milk in the lower half of its industry. The industry median Gross Margin % is 26.37. China Shengmu Organic Milk's value of 24.95% is 5.4% below this benchmark. Historically, China Shengmu Organic Milk's own Gross Margin % has ranged from 25.10 to 57.42 over the past decade. While the company's 10-year median is 33.91 vs. the industry median of 26.37, China Shengmu Organic Milk 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 Consumer Packaged Goods company?
The median Gross Margin % among Consumer Packaged Goods companies is 26.37, based on 1,899 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. China Shengmu Organic Milk's current Gross Margin % of 24.95% is 5.4% 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 China Shengmu Organic Milk and its competitors. For the Consumer Packaged Goods industry, the median Gross Margin % is 26.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Shengmu Organic Milk's current Gross Margin % is 24.95%, which is 26% below median its own 10-year median of 33.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Shengmu Organic Milk stock overvalued right now?
China Shengmu Organic Milk (STU:7OM) has a current Gross Margin % of 24.95%. The stock's GF Value™ is €0.03, compared to a current price of €0.04 — trading 20% above its estimated fair value. The current Gross Margin % is 24.95%, which is 26% below median its 10-year median of 33.91 and 5.4% below the Consumer Packaged Goods industry median of 26.37. China Shengmu Organic Milk's overall GF Score™ is 49/100 with 5 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 China Shengmu Organic Milk (STU:7OM), the current Gross Margin % is 24.95% as of Dec. 2025. 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 China Shengmu Organic Milk (STU:7OM) Overvalued in 2026?
Based on GuruFocus' analysis, China Shengmu Organic Milk stock appears to be overvalued.
The current stock price of €0.04 is trading 20% above its estimated GF Value™ of €0.03.
Key valuation signals for STU:7OM:
Gross Margin %: 24.95% (26% below median its 10-year median of 33.91)
GF Value™: €0.03 vs. price of €0.04 (20% above fair value)
Industry Position: 5.4% below the Consumer Packaged Goods median (#1009 of 1899)
No single metric tells the full story. See the STU:7OM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Shengmu Organic Milk Ltd is an organic dairy company in China. The company, through its subsidiaries, is engaged in the production and distribution of raw milk and dairy products. It operates in a single segment, which is the Sale of raw milk. The company's income is mainly derived from its business activities in Mainland China.
49GF 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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