Tat Hong Equipment Service CoFRA:1Q2 48 Gross Margin % is 8.13% as of Sep. 2025, which is 69% below its 10-year median of 25.85. GuruFocus rates FRA:1Q2 with a GF Score™ of 48/100 and a GF Value™ of €0.07 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 210 Farm & Heavy Construction Machinery companies, Tat Hong Equipment Service Co ranks worse than 92.86% on this metric.
FRA:1Q2's Gross Margin % is ranked worse than 92.86% of 210
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 25.66
vs FRA:1Q2: 9.65
Tat Hong Equipment Service Co had a gross margin of 8.13% for the quarter that ended in Sep. 2025 => No sustainable competitive advantage
Tat Hong Equipment Service Co (FRA:1Q2) 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
Tat Hong Equipment Service Co had a gross margin of 8.13% 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.
Tat Hong Equipment Service Co Gross Margin % Related Terms
Tat Hong Equipment Service 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.
Tat Hong Equipment Service Co Gross Margin % Chart
FRA:1Q2 vs CAT, DE, PCAR: Gross Margin % Comparison
For the Farm & Heavy Construction Machinery subindustry, Tat Hong Equipment Service 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.
Tat Hong Equipment Service Co Gross Margin % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Tat Hong Equipment Service Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Tat Hong Equipment Service 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.
Tat Hong Equipment Service Co (FRA:1Q2) has a Gross Margin % of 8.13% as of Sep. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Tat Hong Equipment Service Co and its competitors. This is 69% below median its historical median of 25.85. Over the past decade, Tat Hong Equipment Service Co's Gross Margin % has ranged from 9.65 to 34.46. According to the industry distribution chart, Tat Hong Equipment Service Co ranks #195 out of 210 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 92.9%.
Is Tat Hong Equipment Service Co's Gross Margin % too high?
Tat Hong Equipment Service Co's current Gross Margin % of 8.13% is 69% below median its 10-year median of 25.85. Over the past 10 years, this metric has ranged from a low of 9.65 to a high of 34.46. The Farm & Heavy Construction Machinery industry median Gross Margin % is 25.66. Tat Hong Equipment Service Co's value of 8.13% is 68.3% below this industry median. Based on the distribution chart, Tat Hong Equipment Service Co ranks #195 out of 210 companies in the Farm & Heavy Construction Machinery industry, which is in the bottom quartile relative to peers. Overall, Tat Hong Equipment Service Co has a GF Score™ of 48/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tat Hong Equipment Service Co's Gross Margin % compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Tat Hong Equipment Service Co ranks #195 out of 210 companies for Gross Margin %. This places Tat Hong Equipment Service Co in the lower half of its industry. The industry median Gross Margin % is 25.66. Tat Hong Equipment Service Co's value of 8.13% is 68.3% below this benchmark. Historically, Tat Hong Equipment Service Co's own Gross Margin % has ranged from 9.65 to 34.46 over the past decade. While the company's 10-year median is 25.85 vs. the industry median of 25.66, Tat Hong Equipment Service 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 Farm & Heavy Construction Machinery company?
The median Gross Margin % among Farm & Heavy Construction Machinery companies is 25.66, based on 210 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. Tat Hong Equipment Service Co's current Gross Margin % of 8.13% is 68.3% 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 Tat Hong Equipment Service Co and its competitors. For the Farm & Heavy Construction Machinery industry, the median Gross Margin % is 25.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tat Hong Equipment Service Co's current Gross Margin % is 8.13%, which is 69% below median its own 10-year median of 25.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tat Hong Equipment Service Co stock overvalued right now?
Based on GuruFocus' analysis, Tat Hong Equipment Service Co (FRA:1Q2) is currently considered Modestly Overvalued. The stock's GF Value™ is €0.07, compared to a current price of €0.09 — trading 21.4% above its estimated fair value. The current Gross Margin % is 8.13%, which is 69% below median its 10-year median of 25.85 and 68.3% below the Farm & Heavy Construction Machinery industry median of 25.66. Tat Hong Equipment Service Co's overall GF Score™ is 48/100 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 Tat Hong Equipment Service Co (FRA:1Q2), the current Gross Margin % is 8.13% 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 Tat Hong Equipment Service Co (FRA:1Q2) Overvalued in 2026?
Based on GuruFocus' analysis, Tat Hong Equipment Service Co stock appears to be overvalued.
The current stock price of €0.09 is trading 21.4% above its estimated GF Value™ of €0.07.
GuruFocus considers Tat Hong Equipment Service Co to be Modestly Overvalued.
Key valuation signals for FRA:1Q2:
Gross Margin %: 8.13% (69% below median its 10-year median of 25.85)
GF Value™: €0.07 vs. price of €0.09 (21.4% above fair value)
Industry Position: 68.3% below the Farm & Heavy Construction Machinery median (#195 of 210)
No single metric tells the full story. See the FRA:1Q2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tat Hong Equipment Service Co Business Description
Tat Hong Equipment Service Co Ltd is involved in providing tower crane services. The company offers a range of tower crane solutions, including consultation, technical design, commissioning, construction, and after-sales services. The operating segments generate revenue mainly from tower crane services. Geographically the key revenue is obtained from PRC region.
48GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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