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Zhejiang Kan Specialities Material Co (SZSE:002012) 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
Zhejiang Kan Specialities Material Co had a gross margin of 17.66% for the quarter that ended in Mar. 2026 => 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.
Zhejiang Kan Specialities Material Co Gross Margin % Related Terms
Zhejiang Kan Specialities Material 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.
Zhejiang Kan Specialities Material Co Gross Margin % Chart
Zhejiang Kan Specialities Material Co Gross Margin % Competitor Comparison
For the Paper & Paper Products subindustry, Zhejiang Kan Specialities Material 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.
Zhejiang Kan Specialities Material Co Gross Margin % vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Zhejiang Kan Specialities Material Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Zhejiang Kan Specialities Material 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.
Zhejiang Kan Specialities Material Co (SZSE:002012) has a Gross Margin % of 17.66% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Zhejiang Kan Specialities Material Co and its competitors. This is 26% below median its historical median of 23.72. Over the past decade, Zhejiang Kan Specialities Material Co's Gross Margin % has ranged from 16.93 to 33.95. According to the industry distribution chart, Zhejiang Kan Specialities Material Co ranks #152 out of 278 companies in the Forest Products industry, placing it in the top 54.7%.
Is Zhejiang Kan Specialities Material Co's Gross Margin % too high?
Zhejiang Kan Specialities Material Co's current Gross Margin % of 17.66% is 26% below median its 10-year median of 23.72. Over the past 10 years, this metric has ranged from a low of 16.93 to a high of 33.95. The Forest Products industry median Gross Margin % is 18.73. Zhejiang Kan Specialities Material Co's value of 17.66% is 5.7% below this industry median. Based on the distribution chart, Zhejiang Kan Specialities Material Co ranks #152 out of 278 companies in the Forest Products industry, which is below the industry midpoint. Overall, Zhejiang Kan Specialities Material Co has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zhejiang Kan Specialities Material Co's Gross Margin % compare to competitors?
According to the Forest Products industry distribution chart, Zhejiang Kan Specialities Material Co ranks #152 out of 278 companies for Gross Margin %. This places Zhejiang Kan Specialities Material Co in the lower half of its industry. The industry median Gross Margin % is 18.73. Zhejiang Kan Specialities Material Co's value of 17.66% is 5.7% below this benchmark. Historically, Zhejiang Kan Specialities Material Co's own Gross Margin % has ranged from 16.93 to 33.95 over the past decade. While the company's 10-year median is 23.72 vs. the industry median of 18.73, Zhejiang Kan Specialities Material 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 a Forest Products company?
The median Gross Margin % among Forest Products companies is 18.73, based on 278 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. Zhejiang Kan Specialities Material Co's current Gross Margin % of 17.66% is 5.7% 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 Zhejiang Kan Specialities Material Co and its competitors. For the Forest Products industry, the median Gross Margin % is 18.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhejiang Kan Specialities Material Co's current Gross Margin % is 17.66%, which is 26% below median its own 10-year median of 23.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhejiang Kan Specialities Material Co stock overvalued right now?
Based on GuruFocus' analysis, Zhejiang Kan Specialities Material Co (SZSE:002012) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥5.02, compared to a current price of ¥6.73 — trading 34.1% above its estimated fair value. The current Gross Margin % is 17.66%, which is 26% below median its 10-year median of 23.72 and 5.7% below the Forest Products industry median of 18.73. Zhejiang Kan Specialities Material Co's overall GF Score™ is 62/100 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 Zhejiang Kan Specialities Material Co (SZSE:002012), the current Gross Margin % is 17.66% 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 Zhejiang Kan Specialities Material Co (SZSE:002012) Overvalued in 2026?
Based on GuruFocus' analysis, Zhejiang Kan Specialities Material Co stock appears to be overvalued.
The current stock price of ¥6.73 is trading 34.1% above its estimated GF Value™ of ¥5.02.
GuruFocus considers Zhejiang Kan Specialities Material Co to be Significantly Overvalued.
Key valuation signals for SZSE:002012:
Gross Margin %: 17.66% (26% below median its 10-year median of 23.72)
GF Value™: ¥5.02 vs. price of ¥6.73 (34.1% above fair value)
Industry Position: 5.7% below the Forest Products median (#152 of 278)
No single metric tells the full story. See the SZSE:002012 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhejiang Kan Specialities Material Co Ltd operates as a specialty paper company. The company mainly produces cigarette supporting paper, special food packaging paper, industrial supporting paper, and medical packaging materials.
62GF Score
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