Tiangong International Co (FRA:34T1) 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
Tiangong International Co had a gross margin of 21.38% for the quarter that ended in Dec. 2025 => Competition eroding margins
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.
Tiangong International Co Gross Margin % Related Terms
Tiangong International 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.
FRA:34T1 vs NUE, STLD, RS: Gross Margin % Comparison
For the Steel subindustry, Tiangong International 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.
Tiangong International Co Gross Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Tiangong International Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Tiangong International 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.
Tiangong International Co (FRA:34T1) has a Gross Margin % of 21.38% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Tiangong International Co and its competitors. This is near median its historical median of 20.26. Over the past decade, Tiangong International Co's Gross Margin % has ranged from 11.02 to 24.46. According to the industry distribution chart, Tiangong International Co ranks #167 out of 592 companies in the Steel industry, placing it in the top 28.2%.
Is Tiangong International Co's Gross Margin % too high?
Tiangong International Co's current Gross Margin % of 21.38% is near median its 10-year median of 20.26. Over the past 10 years, this metric has ranged from a low of 11.02 to a high of 24.46. The Steel industry median Gross Margin % is 12.55. Tiangong International Co's value of 21.38% is 70.4% above this industry median. Based on the distribution chart, Tiangong International Co ranks #167 out of 592 companies in the Steel industry, which is above the industry midpoint. Overall, Tiangong International Co has a GF Score™ of 77/100, reflecting its overall financial health beyond just this single metric.
How does Tiangong International Co's Gross Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Tiangong International Co ranks #167 out of 592 companies for Gross Margin %. This puts Tiangong International Co in the upper half of its industry. The industry median Gross Margin % is 12.55. Tiangong International Co's value of 21.38% is 70.4% above this benchmark. Historically, Tiangong International Co's own Gross Margin % has ranged from 11.02 to 24.46 over the past decade. While the company's 10-year median is 20.26 vs. the industry median of 12.55, Tiangong International 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 Gross Margin % for a Steel company?
The median Gross Margin % among Steel companies is 12.55, based on 592 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. Tiangong International Co's current Gross Margin % of 21.38% is 70.4% 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 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 Tiangong International Co and its competitors. For the Steel industry, the median Gross Margin % is 12.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tiangong International Co's current Gross Margin % is 21.38%, which is near median its own 10-year median of 20.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tiangong International Co stock overvalued right now?
Tiangong International Co (FRA:34T1) has a current Gross Margin % of 21.38%. The stock's GF Value™ is €0.27, compared to a current price of €0.43 — trading 58.5% above its estimated fair value. The current Gross Margin % is 21.38%, which is near median its 10-year median of 20.26 and 70.4% above the Steel industry median of 12.55. Tiangong International Co's overall GF Score™ is 77/100 with 12 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 Tiangong International Co (FRA:34T1), the current Gross Margin % is 21.38% 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 Tiangong International Co (FRA:34T1) Overvalued in 2026?
Based on GuruFocus' analysis, Tiangong International Co stock appears to be overvalued.
The current stock price of €0.43 is trading 58.5% above its estimated GF Value™ of €0.27.
Key valuation signals for FRA:34T1:
Gross Margin %: 21.38% (near median its 10-year median of 20.26)
GF Value™: €0.27 vs. price of €0.43 (58.5% above fair value)
Industry Position: 70.4% above the Steel median (#167 of 592)
No single metric tells the full story. See the FRA:34T1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tiangong International Co Ltd is engaged in the manufacturing and sales of high alloy steel, cutting tools, titanium alloy, trading of goods, and others. The reportable segments of the company are, the DS segment, which derives majority revenue, manufactures and sells materials that are used in the die set manufacturing industry; the HSS segment manufactures and sells materials that are used in the tools manufacturing industry; the cutting tools segment manufactures and sells HSS and carbide cutting tools to the tooling industry; the Titanium alloy segment manufactures and sells titanium alloys to the titanium industry; and the Others segment assembles and sells power tool kits. The company operates in PRC, North America, Europe, Asia (other than the PRC), and other regions.
77GF 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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