Huabao International Holdings (STU:CEY2) 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
Huabao International Holdings had a gross margin of 38.62% 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.
Huabao International Holdings Gross Margin % Related Terms
Huabao International Holdings 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.
Huabao International Holdings Gross Margin % Chart
STU:CEY2 vs LIN, SHW, ECL: Gross Margin % Comparison
For the Specialty Chemicals subindustry, Huabao International Holdings'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.
Huabao International Holdings Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Huabao International Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Huabao International Holdings'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.
Huabao International Holdings (STU:CEY2) has a Gross Margin % of 38.62% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Huabao International Holdings and its competitors. This is 37% below median its historical median of 61.26. Over the past decade, Huabao International Holdings' Gross Margin % has ranged from 40.83 to 68.87. According to the industry distribution chart, Huabao International Holdings ranks #266 out of 1561 companies in the Chemicals industry, placing it in the top 17%.
Is Huabao International Holdings' Gross Margin % too high?
Huabao International Holdings' current Gross Margin % of 38.62% is 37% below median its 10-year median of 61.26. Over the past 10 years, this metric has ranged from a low of 40.83 to a high of 68.87. The Chemicals industry median Gross Margin % is 23.35. Huabao International Holdings' value of 38.62% is 65.4% above this industry median. Based on the distribution chart, Huabao International Holdings ranks #266 out of 1561 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Huabao International Holdings has a GF Score™ of 60/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Huabao International Holdings' Gross Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Huabao International Holdings ranks #266 out of 1561 companies for Gross Margin %. This places Huabao International Holdings in the top 17% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 23.35. Huabao International Holdings' value of 38.62% is 65.4% above this benchmark. Historically, Huabao International Holdings' own Gross Margin % has ranged from 40.83 to 68.87 over the past decade. While the company's 10-year median is 61.26 vs. the industry median of 23.35, Huabao International Holdings 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 Chemicals company?
The median Gross Margin % among Chemicals companies is 23.35, based on 1,561 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. Huabao International Holdings's current Gross Margin % of 38.62% is 65.4% 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 Huabao International Holdings and its competitors. For the Chemicals industry, the median Gross Margin % is 23.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Huabao International Holdings's current Gross Margin % is 38.62%, which is 37% below median its own 10-year median of 61.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Huabao International Holdings stock overvalued right now?
Based on GuruFocus' analysis, Huabao International Holdings (STU:CEY2) is currently considered Fairly Valued. The stock's GF Value™ is €0.33, compared to a current price of €0.32 — trading 2.4% below its estimated fair value. The current Gross Margin % is 38.62%, which is 37% below median its 10-year median of 61.26 and 65.4% above the Chemicals industry median of 23.35. Huabao International Holdings' overall GF Score™ is 60/100 with 4 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 Huabao International Holdings (STU:CEY2), the current Gross Margin % is 38.62% 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 Huabao International Holdings (STU:CEY2) Overvalued in 2026?
Based on GuruFocus' analysis, Huabao International Holdings stock appears to be undervalued.
The current stock price of €0.32 is trading 2.4% below its estimated GF Value™ of €0.33.
GuruFocus considers Huabao International Holdings to be Fairly Valued.
Key valuation signals for STU:CEY2:
Gross Margin %: 38.62% (37% below median its 10-year median of 61.26)
GF Value™: €0.33 vs. price of €0.32 (2.4% below fair value)
Industry Position: 65.4% above the Chemicals median (#266 of 1561)
No single metric tells the full story. See the STU:CEY2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Huabao International Holdings Business Description
Huabao International Holdings Ltd is an investment holding company. Its operating segments are Flavours and fragrances, Tobacco raw materials, aroma raw materials, and Condiments. The company generates maximum revenue from Flavours and fragrances segment. Its Flavours and fragrances segment includes research and development, production and sale of flavors and fragrances products.
60GF Score
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