ZK International Group CoZKIN +2.21%59 Gross Margin % is 5.93% as of Sep. 2025, which is 15% below its 10-year median of 6.97. GuruFocus rates ZKIN with a GF Score™ of 59/100 and a GF Value™ of $1.79 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 594 Steel companies, ZK International Group Co ranks worse than 77.78% on this metric.
ZK International Group Co (NAS:ZKIN) 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
ZK International Group Co had a gross margin of 5.93% for the quarter that ended in Sep. 2025 => 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.
ZK International Group Co Gross Margin % Related Terms
ZK International Group 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 Steel subindustry, ZK International Group 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.
ZK International Group Co Gross Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, ZK International Group Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where ZK International Group 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.
ZK International Group Co (ZKIN) has a Gross Margin % of 5.93% as of Sep. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on ZK International Group Co and its competitors. This is 15% below median its historical median of 6.97. Over the past decade, ZK International Group Co's Gross Margin % has ranged from 1.16 to 33.33. According to the industry distribution chart, ZK International Group Co ranks #462 out of 594 companies in the Steel industry, placing it in the top 77.8%.
Is ZK International Group Co's Gross Margin % too high?
ZK International Group Co's current Gross Margin % of 5.93% is 15% below median its 10-year median of 6.97. Over the past 10 years, this metric has ranged from a low of 1.16 to a high of 33.33. The Steel industry median Gross Margin % is 12.61. ZK International Group Co's value of 5.93% is 53% below this industry median. Based on the distribution chart, ZK International Group Co ranks #462 out of 594 companies in the Steel industry, which is in the bottom quartile relative to peers. Overall, ZK International Group Co has a GF Score™ of 59/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does ZK International Group Co's Gross Margin % compare to LUD and HLP?
According to the Steel industry distribution chart, ZK International Group Co ranks #462 out of 594 companies for Gross Margin %. This places ZK International Group Co in the lower half of its industry. The industry median Gross Margin % is 12.61. ZK International Group Co's value of 5.93% is 53% below this benchmark. Historically, ZK International Group Co's own Gross Margin % has ranged from 1.16 to 33.33 over the past decade. While the company's 10-year median is 6.97 vs. the industry median of 12.61, ZK International Group 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 Steel company?
The median Gross Margin % among Steel companies is 12.61, based on 594 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. ZK International Group Co's current Gross Margin % of 5.93% is 53% 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 ZK International Group Co and its competitors. For the Steel industry, the median Gross Margin % is 12.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ZK International Group Co's current Gross Margin % is 5.93%, which is 15% below median its own 10-year median of 6.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ZK International Group Co stock overvalued right now?
Based on GuruFocus' analysis, ZK International Group Co (ZKIN) is currently considered Modestly Undervalued. The stock's GF Value™ is $1.79, compared to a current price of $1.44 — trading 19.6% below its estimated fair value. The current Gross Margin % is 5.93%, which is 15% below median its 10-year median of 6.97 and 53% below the Steel industry median of 12.61. ZK International Group Co's overall GF Score™ is 59/100 with 7 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 ZK International Group Co (ZKIN), the current Gross Margin % is 5.93% as of Sep. 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 ZK International Group Co (ZKIN) Overvalued in 2026?
Based on GuruFocus' analysis, ZK International Group Co stock appears to be undervalued.
The current stock price of $1.44 is trading 19.6% below its estimated GF Value™ of $1.79.
GuruFocus considers ZK International Group Co to be Modestly Undervalued.
Key valuation signals for ZKIN:
Gross Margin %: 5.93% (15% below median its 10-year median of 6.97)
GF Value™: $1.79 vs. price of $1.44 (19.6% below fair value)
Industry Position: 53% below the Steel median (#462 of 594)
No single metric tells the full story. See the ZKIN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ZK International Group Co Ltd is engaged in the manufacture and marketing of metal pipes. The company is specialized in producing double-press thin-walled stainless steel tubes and fittings, carbon steel tubes and fittings, single-press tubes and fittings, and stainless-steel strips. The products are used in restaurants, hotels, hospitals, firefighting, food, beverage, ships, engines, industrial seawater desalination and systems of direct-drinking water, cold /hot water supply, city water supply, and gas of large/middle scale construction projects.
59GF Score
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