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China Water Industry Group (STU:HAU) 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 Water Industry Group had a gross margin of -10.66% for the quarter that ended in Dec. 2025 => 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.
China Water Industry Group Gross Margin % Related Terms
China Water Industry Group 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:HAU vs AWK, WTRG, AWR: Gross Margin % Comparison
For the Utilities - Regulated Water subindustry, China Water Industry Group'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 Water Industry Group Gross Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, China Water Industry Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where China Water Industry Group'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 Water Industry Group (STU:HAU) has a Gross Margin % of -10.66% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on China Water Industry Group and its competitors. Over the past decade, China Water Industry Group's Gross Margin % has ranged from 1.91 to 42.52.
Is China Water Industry Group's Gross Margin % too high?
China Water Industry Group's current Gross Margin % is -10.66%. Over the past 10 years, this metric has ranged from a low of 1.91 to a high of 42.52. Overall, China Water Industry Group has a GF Score™ of 33/100, reflecting its overall financial health beyond just this single metric.
How does China Water Industry Group's Gross Margin % compare to AWK and WTRG?
China Water Industry Group's Gross Margin % of -10.66% can be compared against companies in the Utilities - Regulated industry. The industry median Gross Margin % is 31.25. Historically, China Water Industry Group's own Gross Margin % has ranged from 1.91 to 42.52 over the past decade. 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 Utilities - Regulated company?
The median Gross Margin % among Utilities - Regulated companies is 31.25, based on 488 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. 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 Water Industry Group and its competitors. For the Utilities - Regulated industry, the median Gross Margin % is 31.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Water Industry Group's current Gross Margin % is -10.66%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Water Industry Group stock overvalued right now?
China Water Industry Group (STU:HAU) has a current Gross Margin % of -10.66%. The stock's GF Value™ is €0.01, compared to a current price of €0.02 — trading 90% above its estimated fair value. The current Gross Margin % is -10.66%. China Water Industry Group's overall GF Score™ is 33/100 with 11 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 Water Industry Group (STU:HAU), the current Gross Margin % is -10.66% 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 Water Industry Group (STU:HAU) Overvalued in 2026?
Based on GuruFocus' analysis, China Water Industry Group stock appears to be overvalued.
The current stock price of €0.02 is trading 90% above its estimated GF Value™ of €0.01.
Key valuation signals for STU:HAU:
Gross Margin %: -10.66%
GF Value™: €0.01 vs. price of €0.02 (90% above fair value)
No single metric tells the full story. See the STU:HAU stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AddressDashi First Road, Xili Community, Xili Street, Room 2204, 22nd Floor, Block A, Building 6, Shenzhen International Innovation Valley, Nanshan District, Shenzhen, CHN
China Water Industry Group Ltd is an investment holding company engaged in the water supplying and energy related business. The company operates in business segments, namely Provision of water supply, sewage treatment, and construction services segment, which generates maximum revenue is engaged in provision of water supply and sewage treatment operations and related construction services; Exploitation and sale of renewable energy segment, engaged in the sale of electricity and CNG from biogas power plants; Property investment and development segment engaged in the sale of commercial and residential units; and waste management and recycling segment focuses on services income from collection and recycling of glass bottles and collection of food waste. It derives maximum revenue from PRC.
33GF 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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