SHSE:603856'
s Net Margin % Range Over the Past 10 Years
Min: 5.23 Med: 8.39 Max: 13.31
Current: 11.39
SHSE:603856's Net Margin % is ranked better than 83.64% of 1760
companies
in the Construction industry
Industry Median: 3.91
vs SHSE:603856: 11.39
Shandong Donghong Pipe Industry Co (SHSE:603856) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Shandong Donghong Pipe Industry Co Net Margin % Related Terms
Shandong Donghong Pipe Industry Co Net 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.
Shandong Donghong Pipe Industry Co Net Margin % Chart
SHSE:603856 vs TT, JCI, CARR: Net Margin % Comparison
For the Building Products & Equipment subindustry, Shandong Donghong Pipe Industry Co's Net Margin %, along with its competitors' market caps and Net 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.
Shandong Donghong Pipe Industry Co Net Margin % vs Construction Industry
For the Construction industry and Industrials sector, Shandong Donghong Pipe Industry Co's Net Margin % distribution charts can be found below:
* The bar in red indicates where Shandong Donghong Pipe Industry Co's Net 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.
Shandong Donghong Pipe Industry Co (SHSE:603856) has a Net Margin % of 8.52% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Shandong Donghong Pipe Industry Co and its competitors. This is near median its historical median of 8.39. Over the past decade, Shandong Donghong Pipe Industry Co's Net Margin % has ranged from 5.23 to 13.31. According to the industry distribution chart, Shandong Donghong Pipe Industry Co ranks #288 out of 1760 companies in the Construction industry, placing it in the top 16.4%.
Is Shandong Donghong Pipe Industry Co's Net Margin % too high?
Shandong Donghong Pipe Industry Co's current Net Margin % of 8.52% is near median its 10-year median of 8.39. Over the past 10 years, this metric has ranged from a low of 5.23 to a high of 13.31. The Construction industry median Net Margin % is 3.91. Shandong Donghong Pipe Industry Co's value of 8.52% is 117.9% above this industry median. Based on the distribution chart, Shandong Donghong Pipe Industry Co ranks #288 out of 1760 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Shandong Donghong Pipe Industry Co has a GF Score™ of 79/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shandong Donghong Pipe Industry Co's Net Margin % compare to TT and JCI?
According to the Construction industry distribution chart, Shandong Donghong Pipe Industry Co ranks #288 out of 1760 companies for Net Margin %. This places Shandong Donghong Pipe Industry Co in the top 16% of its industry — outperforming the majority of peers. The industry median Net Margin % is 3.91. Shandong Donghong Pipe Industry Co's value of 8.52% is 117.9% above this benchmark. Historically, Shandong Donghong Pipe Industry Co's own Net Margin % has ranged from 5.23 to 13.31 over the past decade. While the company's 10-year median is 8.39 vs. the industry median of 3.91, Shandong Donghong Pipe 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 Net Margin % for a Construction company?
The median Net Margin % among Construction companies is 3.91, based on 1,760 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Shandong Donghong Pipe Industry Co's current Net Margin % of 8.52% is 117.9% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Shandong Donghong Pipe Industry Co and its competitors. For the Construction industry, the median Net Margin % is 3.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shandong Donghong Pipe Industry Co's current Net Margin % is 8.52%, which is near median its own 10-year median of 8.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shandong Donghong Pipe Industry Co stock overvalued right now?
Based on GuruFocus' analysis, Shandong Donghong Pipe Industry Co (SHSE:603856) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥9.27, compared to a current price of ¥13.51 — trading 45.7% above its estimated fair value. The current Net Margin % is 8.52%, which is near median its 10-year median of 8.39 and 117.9% above the Construction industry median of 3.91. Shandong Donghong Pipe Industry Co's overall GF Score™ is 79/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Shandong Donghong Pipe Industry Co (SHSE:603856), the current Net Margin % is 8.52% as of Mar. 2026. 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 Shandong Donghong Pipe Industry Co (SHSE:603856) Overvalued in 2026?
Based on GuruFocus' analysis, Shandong Donghong Pipe Industry Co stock appears to be overvalued.
The current stock price of ¥13.51 is trading 45.7% above its estimated GF Value™ of ¥9.27.
GuruFocus considers Shandong Donghong Pipe Industry Co to be Significantly Overvalued.
Key valuation signals for SHSE:603856:
Net Margin %: 8.52% (near median its 10-year median of 8.39)
GF Value™: ¥9.27 vs. price of ¥13.51 (45.7% above fair value)
Industry Position: 117.9% above the Construction median (#288 of 1760)
No single metric tells the full story. See the SHSE:603856 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shandong Donghong Pipe Industry Co Business Description
Shandong Donghong Pipe Industry Co Ltd is engaged in the research and development, manufacturing and service of an intelligent pipeline system in China. Its products line includes steel mesh skeleton plastic composite pipes, super wear-resisting composite pipes, HDPE gas pipes, plastic-coated steel pipes, polyethylene pipes for underground coal mining, and other products.
79GF Score
Get the complete analysis for SHSE:603856
Net Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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