Tianqi LithiumTQLCF 57 Gross Margin % is 62.66% as of Mar. 2026, which is 3% below its 10-year median of 64.79. GuruFocus rates TQLCF with a GF Score™ of 57/100 and a GF Value™ of $3.95 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,564 Chemicals companies, Tianqi Lithium ranks better than 89.71% on this metric.
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
Tianqi Lithium had a gross margin of 62.66% 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.
Tianqi Lithium Gross Margin % Related Terms
Tianqi Lithium Gross Margin % Historical Data
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The historical data trend for Tianqi Lithium's Gross Margin % can be seen below:
* 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.
For the Specialty Chemicals subindustry, Tianqi Lithium'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.
Tianqi Lithium Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Tianqi Lithium's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Tianqi Lithium'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.
Tianqi Lithium (TQLCF) has a Gross Margin % of 62.66% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Tianqi Lithium and its competitors. This is near median its historical median of 64.79. Over the past decade, Tianqi Lithium's Gross Margin % has ranged from 39.47 to 85.12. According to the industry distribution chart, Tianqi Lithium ranks #161 out of 1564 companies in the Chemicals industry, placing it in the top 10.3%.
Is Tianqi Lithium's Gross Margin % too high?
Tianqi Lithium's current Gross Margin % of 62.66% is near median its 10-year median of 64.79. Over the past 10 years, this metric has ranged from a low of 39.47 to a high of 85.12. The Chemicals industry median Gross Margin % is 23.38. Tianqi Lithium's value of 62.66% is 168.1% above this industry median. Based on the distribution chart, Tianqi Lithium ranks #161 out of 1564 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Tianqi Lithium has a GF Score™ of 57/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tianqi Lithium's Gross Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Tianqi Lithium ranks #161 out of 1564 companies for Gross Margin %. This places Tianqi Lithium in the top 10% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 23.38. Tianqi Lithium's value of 62.66% is 168.1% above this benchmark. Historically, Tianqi Lithium's own Gross Margin % has ranged from 39.47 to 85.12 over the past decade. While the company's 10-year median is 64.79 vs. the industry median of 23.38, Tianqi Lithium 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 23.38, based on 1,564 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. Tianqi Lithium's current Gross Margin % of 62.66% is 168.1% 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 Tianqi Lithium and its competitors. For the Chemicals industry, the median Gross Margin % is 23.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tianqi Lithium's current Gross Margin % is 62.66%, which is near median its own 10-year median of 64.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tianqi Lithium stock overvalued right now?
Based on GuruFocus' analysis, Tianqi Lithium (TQLCF) is currently considered Significantly Overvalued. The stock's GF Value™ is $3.95, compared to a current price of $8.75 — trading 121.5% above its estimated fair value. The current Gross Margin % is 62.66%, which is near median its 10-year median of 64.79 and 168.1% above the Chemicals industry median of 23.38. Tianqi Lithium's overall GF Score™ is 57/100 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 Tianqi Lithium (TQLCF), the current Gross Margin % is 62.66% 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 Tianqi Lithium (TQLCF) Overvalued in 2026?
Based on GuruFocus' analysis, Tianqi Lithium stock appears to be overvalued.
The current stock price of $8.75 is trading 121.5% above its estimated GF Value™ of $3.95.
GuruFocus considers Tianqi Lithium to be Significantly Overvalued.
Key valuation signals for TQLCF:
Gross Margin %: 62.66% (near median its 10-year median of 64.79)
GF Value™: $3.95 vs. price of $8.75 (121.5% above fair value)
Industry Position: 168.1% above the Chemicals median (#161 of 1564)
No single metric tells the full story. See the TQLCF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tianqi Lithium is a leading new energy materials company headquartered in Sichuan, China. The company is the largest producer of mined lithium globally in terms of output and is ranked third in terms of revenue generated from lithium, according to Wood Mackenzie. It is also the world's fourth largest and Asia's second largest lithium compound producer, as measured by production output, according to the same source. Tianqi is the only lithium producer in China that achieved 100% self-sufficiency and has fully vertically integrated lithium mines. The firm operates in critical stages of the lithium value chain, including: 1) mining of lithium ore and manufacturing of lithium concentrate; and 2) manufacturing of lithium compounds and derivatives.
57GF Score
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