Yangtze Optical Fibre and Cable Joint Stock Co (OTCPK:YZOFF) 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
Yangtze Optical Fibre and Cable Joint Stock Co had a gross margin of 35.67% 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.
Yangtze Optical Fibre and Cable Joint Stock Co Gross Margin % Related Terms
Yangtze Optical Fibre and Cable Joint Stock 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.
Yangtze Optical Fibre and Cable Joint Stock Co Gross Margin % Chart
Yangtze Optical Fibre and Cable Joint Stock Co Annual Data
YZOFF vs CSCO, CIEN, MSI: Gross Margin % Comparison
For the Communication Equipment subindustry, Yangtze Optical Fibre and Cable Joint Stock 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.
Yangtze Optical Fibre and Cable Joint Stock Co Gross Margin % vs Hardware Industry
* 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.
Yangtze Optical Fibre and Cable Joint Stock Co (YZOFF) has a Gross Margin % of 35.67% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Yangtze Optical Fibre and Cable Joint Stock Co and its competitors. This is 48% above median its historical median of 24.05. Over the past decade, Yangtze Optical Fibre and Cable Joint Stock Co's Gross Margin % has ranged from 19.63 to 32.73. According to the industry distribution chart, Yangtze Optical Fibre and Cable Joint Stock Co ranks #845 out of 2457 companies in the Hardware industry, placing it in the top 34.4%.
Is Yangtze Optical Fibre and Cable Joint Stock Co's Gross Margin % too high?
Yangtze Optical Fibre and Cable Joint Stock Co's current Gross Margin % of 35.67% is 48% above median its 10-year median of 24.05. Over the past 10 years, this metric has ranged from a low of 19.63 to a high of 32.73. The Hardware industry median Gross Margin % is 24.54. Yangtze Optical Fibre and Cable Joint Stock Co's value of 35.67% is 45.4% above this industry median. Based on the distribution chart, Yangtze Optical Fibre and Cable Joint Stock Co ranks #845 out of 2457 companies in the Hardware industry, which is above the industry midpoint. Overall, Yangtze Optical Fibre and Cable Joint Stock Co has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Yangtze Optical Fibre and Cable Joint Stock Co's Gross Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Yangtze Optical Fibre and Cable Joint Stock Co ranks #845 out of 2457 companies for Gross Margin %. This puts Yangtze Optical Fibre and Cable Joint Stock Co in the upper half of its industry. The industry median Gross Margin % is 24.54. Yangtze Optical Fibre and Cable Joint Stock Co's value of 35.67% is 45.4% above this benchmark. Historically, Yangtze Optical Fibre and Cable Joint Stock Co's own Gross Margin % has ranged from 19.63 to 32.73 over the past decade. While the company's 10-year median is 24.05 vs. the industry median of 24.54, Yangtze Optical Fibre and Cable Joint Stock Co 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 Hardware company?
The median Gross Margin % among Hardware companies is 24.54, based on 2,457 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. Yangtze Optical Fibre and Cable Joint Stock Co's current Gross Margin % of 35.67% is 45.4% 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 Yangtze Optical Fibre and Cable Joint Stock Co and its competitors. For the Hardware industry, the median Gross Margin % is 24.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Yangtze Optical Fibre and Cable Joint Stock Co's current Gross Margin % is 35.67%, which is 48% above median its own 10-year median of 24.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Yangtze Optical Fibre and Cable Joint Stock Co stock overvalued right now?
Based on GuruFocus' analysis, Yangtze Optical Fibre and Cable Joint Stock Co (YZOFF) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.39, compared to a current price of $22.76 — trading 5735.9% above its estimated fair value. The current Gross Margin % is 35.67%, which is 48% above median its 10-year median of 24.05 and 45.4% above the Hardware industry median of 24.54. Yangtze Optical Fibre and Cable Joint Stock Co's overall GF Score™ is 65/100 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 Yangtze Optical Fibre and Cable Joint Stock Co (YZOFF), the current Gross Margin % is 35.67% 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 Yangtze Optical Fibre and Cable Joint Stock Co (YZOFF) Overvalued in 2026?
Based on GuruFocus' analysis, Yangtze Optical Fibre and Cable Joint Stock Co stock appears to be overvalued.
The current stock price of $22.76 is trading 5735.9% above its estimated GF Value™ of $0.39.
GuruFocus considers Yangtze Optical Fibre and Cable Joint Stock Co to be Significantly Overvalued.
Key valuation signals for YZOFF:
Gross Margin %: 35.67% (48% above median its 10-year median of 24.05)
GF Value™: $0.39 vs. price of $22.76 (5735.9% above fair value)
Industry Position: 45.4% above the Hardware median (#845 of 2457)
No single metric tells the full story. See the YZOFF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Yangtze Optical Fibre and Cable Joint Stock Co Business Description
Yangtze Optical Fibre and Cable Joint Stock Ltd Co are principally engaged in the research, development, production and sale of optical fiber preforms, optical fibers, optical cables optical components and modules and related products. The company is the supplier of optical fibre preform, optical fibre, optical fibre cables and other relevant products in telecommunication industry. The group determines the two reporting segments, optical communication products segment and optical transmission components segment. The company generates majority of revenue from optical communication products segment. Its products include Cutting-Edge Product, Specialty Fibre, Raw Material, Submarine Cable, Communication Optical Fibre, Structured Cabling, Optical Transceiver, Coaxial Cable, etc.
65GF Score
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