Zhaojin Mining Industry CoZHAOF 88 Gross Margin % is 45.19% as of Dec. 2025, which is 15% above its 10-year median of 39.36. GuruFocus rates ZHAOF with a GF Score™ of 88/100 and a GF Value™ of $3.81 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 730 Metals & Mining companies, Zhaojin Mining Industry Co ranks better than 64.52% on this metric.
Zhaojin Mining Industry Co (OTCPK:ZHAOF) 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
Zhaojin Mining Industry Co had a gross margin of 45.19% for the quarter that ended in Dec. 2025 => 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.
Zhaojin Mining Industry Co Gross Margin % Related Terms
Zhaojin Mining Industry 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.
For the Gold subindustry, Zhaojin Mining Industry 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.
Zhaojin Mining Industry Co Gross Margin % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Zhaojin Mining Industry Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Zhaojin Mining Industry 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.
Zhaojin Mining Industry Co (ZHAOF) has a Gross Margin % of 45.19% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Zhaojin Mining Industry Co and its competitors. This is 15% above median its historical median of 39.36. Over the past decade, Zhaojin Mining Industry Co's Gross Margin % has ranged from 33.68 to 47.27. According to the industry distribution chart, Zhaojin Mining Industry Co ranks #259 out of 730 companies in the Metals & Mining industry, placing it in the top 35.5%.
Is Zhaojin Mining Industry Co's Gross Margin % too high?
Zhaojin Mining Industry Co's current Gross Margin % of 45.19% is 15% above median its 10-year median of 39.36. Over the past 10 years, this metric has ranged from a low of 33.68 to a high of 47.27. The Metals & Mining industry median Gross Margin % is 26.05. Zhaojin Mining Industry Co's value of 45.19% is 73.5% above this industry median. Based on the distribution chart, Zhaojin Mining Industry Co ranks #259 out of 730 companies in the Metals & Mining industry, which is above the industry midpoint. Overall, Zhaojin Mining Industry Co has a GF Score™ of 88/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Zhaojin Mining Industry Co's Gross Margin % compare to NEM and AU?
According to the Metals & Mining industry distribution chart, Zhaojin Mining Industry Co ranks #259 out of 730 companies for Gross Margin %. This puts Zhaojin Mining Industry Co in the upper half of its industry. The industry median Gross Margin % is 26.05. Zhaojin Mining Industry Co's value of 45.19% is 73.5% above this benchmark. Historically, Zhaojin Mining Industry Co's own Gross Margin % has ranged from 33.68 to 47.27 over the past decade. While the company's 10-year median is 39.36 vs. the industry median of 26.05, Zhaojin Mining Industry 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 Metals & Mining company?
The median Gross Margin % among Metals & Mining companies is 26.05, based on 730 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. Zhaojin Mining Industry Co's current Gross Margin % of 45.19% is 73.5% 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 Zhaojin Mining Industry Co and its competitors. For the Metals & Mining industry, the median Gross Margin % is 26.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhaojin Mining Industry Co's current Gross Margin % is 45.19%, which is 15% above median its own 10-year median of 39.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhaojin Mining Industry Co stock overvalued right now?
Based on GuruFocus' analysis, Zhaojin Mining Industry Co (ZHAOF) is currently considered Possible Value Trap. The stock's GF Value™ is $3.81, compared to a current price of $2.06 — trading 45.9% below its estimated fair value. The current Gross Margin % is 45.19%, which is 15% above median its 10-year median of 39.36 and 73.5% above the Metals & Mining industry median of 26.05. Zhaojin Mining Industry Co's overall GF Score™ is 88/100 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 Zhaojin Mining Industry Co (ZHAOF), the current Gross Margin % is 45.19% 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 Zhaojin Mining Industry Co (ZHAOF) Overvalued in 2026?
Based on GuruFocus' analysis, Zhaojin Mining Industry Co stock appears to be undervalued.
The current stock price of $2.06 is trading 45.9% below its estimated GF Value™ of $3.81.
GuruFocus considers Zhaojin Mining Industry Co to be Possible Value Trap.
Key valuation signals for ZHAOF:
Gross Margin %: 45.19% (15% above median its 10-year median of 39.36)
GF Value™: $3.81 vs. price of $2.06 (45.9% below fair value)
Industry Position: 73.5% above the Metals & Mining median (#259 of 730)
No single metric tells the full story. See the ZHAOF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhaojin Mining Industry Co Ltd is engaged in the mining, processing, smelting, and sale of gold and silver products. The company has three reportable operating segments as follows: the Gold operations segment consists of gold mining and smelting operations; the Copper operations segment consists of copper mining and smelting operations; the Others segment comprises, principally, the Group's other investment activities, operation of a finance company, operation and catering services of a hotel, exploration services, engineering design and consulting services, and overseas operations.
88GF Score
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