Zhongsheng Group HoldingsZSHGY -8.15%57 Gross Margin % is 5.32% as of Dec. 2025, which is 42% below its 10-year median of 9.12. GuruFocus rates ZSHGY with a GF Score™ of 57/100 and a GF Value™ of $18.34 (Significantly Undervalued). The stock has 6 warning signs investors should review. Among 1,311 Vehicles & Parts companies, Zhongsheng Group Holdings ranks worse than 94.81% on this metric.
Zhongsheng Group Holdings (OTCPK:ZSHGY) 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
Zhongsheng Group Holdings had a gross margin of 5.32% for the quarter that ended in Dec. 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.
Zhongsheng Group Holdings Gross Margin % Related Terms
Zhongsheng Group Holdings 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.
ZSHGY vs CVNA, PAG, ALTB: Gross Margin % Comparison
For the Auto & Truck Dealerships subindustry, Zhongsheng Group Holdings'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.
Zhongsheng Group Holdings Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Zhongsheng Group Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Zhongsheng Group Holdings'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.
Zhongsheng Group Holdings (ZSHGY) has a Gross Margin % of 5.32% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Zhongsheng Group Holdings and its competitors. This is 42% below median its historical median of 9.12. Over the past decade, Zhongsheng Group Holdings' Gross Margin % has ranged from 5.38 to 10.55. According to the industry distribution chart, Zhongsheng Group Holdings ranks #1243 out of 1311 companies in the Vehicles & Parts industry, placing it in the top 94.8%.
Is Zhongsheng Group Holdings' Gross Margin % too high?
Zhongsheng Group Holdings' current Gross Margin % of 5.32% is 42% below median its 10-year median of 9.12. Over the past 10 years, this metric has ranged from a low of 5.38 to a high of 10.55. The Vehicles & Parts industry median Gross Margin % is 19.84. Zhongsheng Group Holdings' value of 5.32% is 73.2% below this industry median. Based on the distribution chart, Zhongsheng Group Holdings ranks #1243 out of 1311 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, Zhongsheng Group Holdings has a GF Score™ of 57/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Zhongsheng Group Holdings' Gross Margin % compare to CVNA and PAG?
According to the Vehicles & Parts industry distribution chart, Zhongsheng Group Holdings ranks #1243 out of 1311 companies for Gross Margin %. This places Zhongsheng Group Holdings in the lower half of its industry. The industry median Gross Margin % is 19.84. Zhongsheng Group Holdings' value of 5.32% is 73.2% below this benchmark. Historically, Zhongsheng Group Holdings' own Gross Margin % has ranged from 5.38 to 10.55 over the past decade. While the company's 10-year median is 9.12 vs. the industry median of 19.84, Zhongsheng Group Holdings 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 Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.84, based on 1,311 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. Zhongsheng Group Holdings's current Gross Margin % of 5.32% is 73.2% 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 Zhongsheng Group Holdings and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhongsheng Group Holdings's current Gross Margin % is 5.32%, which is 42% below median its own 10-year median of 9.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhongsheng Group Holdings stock overvalued right now?
Based on GuruFocus' analysis, Zhongsheng Group Holdings (ZSHGY) is currently considered Significantly Undervalued. The stock's GF Value™ is $18.34, compared to a current price of $6.20 — trading 66.2% below its estimated fair value. The current Gross Margin % is 5.32%, which is 42% below median its 10-year median of 9.12 and 73.2% below the Vehicles & Parts industry median of 19.84. Zhongsheng Group Holdings' overall GF Score™ is 57/100 with 6 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 Zhongsheng Group Holdings (ZSHGY), the current Gross Margin % is 5.32% 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 Zhongsheng Group Holdings (ZSHGY) Overvalued in 2026?
Based on GuruFocus' analysis, Zhongsheng Group Holdings stock appears to be undervalued.
The current stock price of $6.20 is trading 66.2% below its estimated GF Value™ of $18.34.
GuruFocus considers Zhongsheng Group Holdings to be Significantly Undervalued.
Key valuation signals for ZSHGY:
Gross Margin %: 5.32% (42% below median its 10-year median of 9.12)
GF Value™: $18.34 vs. price of $6.20 (66.2% below fair value)
Industry Position: 73.2% below the Vehicles & Parts median (#1243 of 1311)
No single metric tells the full story. See the ZSHGY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhongsheng Group Holdings Ltd principally engaged in the sale and service of motor vehicles. The principal activity of the Company is investment holding. It has one reportable segment which is the sale of motor vehicles and the provision of related services. The company's automobile brands including luxury brands of Mercedes-Benz, Lexus, BMW, Audi, Jaguar Land Rover, Porsche, Volvo and AITO, and mid-to-high end automobile brands including Toyota, Nissan and Honda. In addition to its new automobile sales business, its after-sales businesses offer spare parts, automobile accessories, repair and maintenance services, detailing services, and other automobile-related products and services.
57GF Score
Get the complete analysis for ZSHGY
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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