Zhejiang Expressway CoZHEXF +1.78%73 Gross Margin % is 30.99% as of Dec. 2025, which is 26% below its 10-year median of 41.95. GuruFocus rates ZHEXF with a GF Score™ of 73/100 and a GF Value™ of $0.97 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,719 Construction companies, Zhejiang Expressway Co ranks better than 68.59% on this metric.
ZHEXF's Gross Margin % is ranked better than 68.59% of 1719
companies
in the Construction industry
Industry Median: 20.71
vs ZHEXF: 30.12
Zhejiang Expressway Co had a gross margin of 30.99% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Zhejiang Expressway Co was -0.50% per year.
Zhejiang Expressway Co (OTCPK:ZHEXF) 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 Expressway Co had a gross margin of 30.99% 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.
Zhejiang Expressway Co Gross Margin % Related Terms
Zhejiang Expressway Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Zhejiang Expressway Co'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.
Zhejiang Expressway Co Gross Margin % Competitor Comparison
For the Infrastructure Operations subindustry, Zhejiang Expressway 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 Expressway Co Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Zhejiang Expressway Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Zhejiang Expressway 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 Expressway Co (ZHEXF) has a Gross Margin % of 30.99% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Zhejiang Expressway Co and its competitors. This is 26% below median its historical median of 41.95. Over the past decade, Zhejiang Expressway Co's Gross Margin % has ranged from 30.12 to 52.79. According to the industry distribution chart, Zhejiang Expressway Co ranks #540 out of 1719 companies in the Construction industry, placing it in the top 31.4%.
Is Zhejiang Expressway Co's Gross Margin % too high?
Zhejiang Expressway Co's current Gross Margin % of 30.99% is 26% below median its 10-year median of 41.95. Over the past 10 years, this metric has ranged from a low of 30.12 to a high of 52.79. The Construction industry median Gross Margin % is 20.71. Zhejiang Expressway Co's value of 30.99% is 49.6% above this industry median. Based on the distribution chart, Zhejiang Expressway Co ranks #540 out of 1719 companies in the Construction industry, which is above the industry midpoint. Overall, Zhejiang Expressway Co has a GF Score™ of 73/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Zhejiang Expressway Co's Gross Margin % compare to competitors?
According to the Construction industry distribution chart, Zhejiang Expressway Co ranks #540 out of 1719 companies for Gross Margin %. This puts Zhejiang Expressway Co in the upper half of its industry. The industry median Gross Margin % is 20.71. Zhejiang Expressway Co's value of 30.99% is 49.6% above this benchmark. Historically, Zhejiang Expressway Co's own Gross Margin % has ranged from 30.12 to 52.79 over the past decade. While the company's 10-year median is 41.95 vs. the industry median of 20.71, Zhejiang Expressway 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 Construction company?
The median Gross Margin % among Construction companies is 20.71, based on 1,719 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 Expressway Co's current Gross Margin % of 30.99% is 49.6% 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 Zhejiang Expressway Co and its competitors. For the Construction industry, the median Gross Margin % is 20.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhejiang Expressway Co's current Gross Margin % is 30.99%, which is 26% below median its own 10-year median of 41.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhejiang Expressway Co stock overvalued right now?
Based on GuruFocus' analysis, Zhejiang Expressway Co (ZHEXF) is currently considered Modestly Undervalued. The stock's GF Value™ is $0.97, compared to a current price of $0.82 — trading 16% below its estimated fair value. The current Gross Margin % is 30.99%, which is 26% below median its 10-year median of 41.95 and 49.6% above the Construction industry median of 20.71. Zhejiang Expressway Co's overall GF Score™ is 73/100 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 Expressway Co (ZHEXF), the current Gross Margin % is 30.99% 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 Zhejiang Expressway Co (ZHEXF) Overvalued in 2026?
Based on GuruFocus' analysis, Zhejiang Expressway Co stock appears to be undervalued.
The current stock price of $0.82 is trading 16% below its estimated GF Value™ of $0.97.
GuruFocus considers Zhejiang Expressway Co to be Modestly Undervalued.
Key valuation signals for ZHEXF:
Gross Margin %: 30.99% (26% below median its 10-year median of 41.95)
GF Value™: $0.97 vs. price of $0.82 (16% below fair value)
Industry Position: 49.6% above the Construction median (#540 of 1719)
No single metric tells the full story. See the ZHEXF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhejiang Expressway Co Ltd is a Chinese infrastructure company that, through its subsidiaries, develops, maintains, and operates high-grade roads. The company organizes itself into three segments: toll operation, securities business, and other business. The company derives the majority of revenue and earnings from the toll road business. The securities business, the next segment, provides brokerage services, including advisory, margin lending, and asset management. The company earns the entirety of its revenue domestically.
73GF Score
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