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China Railway Signalmmunication (FRA:RS3) Gross Profit 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
China Railway Signalmmunication had a gross margin of 29.73% for the quarter that ended in Dec. 2025 => Competition eroding margins
China Railway Signalmmunication Gross Profit Related Terms
China Railway Signalmmunication Gross Profit 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.
China Railway Signalmmunication Gross Profit Chart
For the Railroads subindustry, China Railway Signalmmunication's Gross Profit, along with its competitors' market caps and Gross Profit 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.
China Railway Signalmmunication Gross Profit vs Transportation Industry
For the Transportation industry and Industrials sector, China Railway Signalmmunication's Gross Profit distribution charts can be found below:
* The bar in red indicates where China Railway Signalmmunication's Gross Profit falls into.
Gross Profit for the trailing twelve months (TTM) ended in Dec. 2025 adds up the quarterly data reported by the company within the most recent 12 months, which was €695 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
* 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.
China Railway Signalmmunication (FRA:RS3) has a Gross Profit of €695 Mil as of Dec. 2025. Gross Profit equals net sales less total cost of goods sold. View historical data on China Railway Signalmmunication and its competitors.
Is China Railway Signalmmunication's Gross Profit too high?
China Railway Signalmmunication's current Gross Profit is €695 Mil. Overall, China Railway Signalmmunication has a GF Score™ of 52/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Railway Signalmmunication's Gross Profit compare to UNP and CSX?
China Railway Signalmmunication's Gross Profit of €695 Mil can be compared against companies in the Transportation industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Profit for a Transportation company?
A good Gross Profit depends on the Transportation industry context. However, Gross Profit should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Profit mean?
A high Gross Profit can signal that a stock is expensive relative to its fundamentals. Gross Profit equals net sales less total cost of goods sold. View historical data on China Railway Signalmmunication and its competitors. China Railway Signalmmunication's current Gross Profit is €695 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Railway Signalmmunication stock overvalued right now?
Based on GuruFocus' analysis, China Railway Signalmmunication (FRA:RS3) is currently considered Modestly Undervalued. The stock's GF Value™ is €0.38, compared to a current price of €0.33 — trading 12.1% below its estimated fair value. The current Gross Profit is €695 Mil. China Railway Signalmmunication's overall GF Score™ is 52/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Profit calculated?
Gross Profit is calculated from a company's financial statements. For China Railway Signalmmunication (FRA:RS3), the current Gross Profit is €695 Mil 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 China Railway Signalmmunication (FRA:RS3) Overvalued in 2026?
Based on GuruFocus' analysis, China Railway Signalmmunication stock appears to be undervalued.
The current stock price of €0.33 is trading 12.1% below its estimated GF Value™ of €0.38.
GuruFocus considers China Railway Signalmmunication to be Modestly Undervalued.
Key valuation signals for FRA:RS3:
Gross Profit: €695 Mil
GF Value™: €0.38 vs. price of €0.33 (12.1% below fair value)
No single metric tells the full story. See the FRA:RS3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Railway Signal & Communication Corp Ltd provides products and services on the entire industrial chain of rail transit control systems. The company's operating segments are the Rail transportation control system segment, which provides specialized three-in-one services of design and integration, equipment manufacturing, and system implementation services for rail transportation control systems; the General engineering contracting segment engages in the provision of services relating to municipal and other construction projects; and other segments mainly engage in trading. The firm generates a majority of its revenue from the Rail transportation control system segment.
52GF Score
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Gross Profit is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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