Tai Kam HoldingsHKSE:08321 31 Gross Margin % is 4.51% as of Oct. 2025, which is 9% below its 10-year median of 4.93. GuruFocus rates HKSE:08321 with a GF Score™ of 31/100 and a GF Value™ of HK$0.18 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 1,722 Construction companies, Tai Kam Holdings ranks worse than 91.35% on this metric.
Tai Kam Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -9.1%.
The historical rank and industry rank for Tai Kam Holdings's Gross Margin % or its related term are showing as below:
HKSE:08321'
s Gross Margin % Range Over the Past 10 Years
Min: 1.9 Med: 4.93 Max: 20.2
Current: 5.13
During the past 11 years, the highestGross Margin % of Tai Kam Holdings was 20.20%. The lowest was 1.90%. And the median was 4.93%.
HKSE:08321's Gross Margin % is ranked worse than 91.35% of 1722
companies
in the Construction industry
Industry Median: 20.715
vs HKSE:08321: 5.13
Tai Kam Holdings had a gross margin of 4.51% for the quarter that ended in Oct. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Tai Kam Holdings was -9.10% per year.
Tai Kam Holdings (HKSE:08321) 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
Tai Kam Holdings had a gross margin of 4.51% for the quarter that ended in Oct. 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.
Tai Kam Holdings Gross Margin % Related Terms
Tai Kam Holdings Gross Margin % Historical Data
* Premium members only.
The historical data trend for Tai Kam Holdings's Gross Margin % can be seen below:
* 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.
HKSE:08321 vs PWR, FIX, EME: Gross Margin % Comparison
For the Engineering & Construction subindustry, Tai Kam 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.
Tai Kam Holdings Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Tai Kam Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Tai Kam 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.
Tai Kam Holdings (HKSE:08321) has a Gross Margin % of 4.51% as of Oct. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Tai Kam Holdings and its competitors. This is near median its historical median of 4.93. Over the past decade, Tai Kam Holdings' Gross Margin % has ranged from 1.90 to 20.20. According to the industry distribution chart, Tai Kam Holdings ranks #1573 out of 1722 companies in the Construction industry, placing it in the top 91.3%.
Is Tai Kam Holdings' Gross Margin % too high?
Tai Kam Holdings' current Gross Margin % of 4.51% is near median its 10-year median of 4.93. Over the past 10 years, this metric has ranged from a low of 1.90 to a high of 20.20. The Construction industry median Gross Margin % is 20.72. Tai Kam Holdings' value of 4.51% is 78.2% below this industry median. Based on the distribution chart, Tai Kam Holdings ranks #1573 out of 1722 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, Tai Kam Holdings has a GF Score™ of 31/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tai Kam Holdings' Gross Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Tai Kam Holdings ranks #1573 out of 1722 companies for Gross Margin %. This places Tai Kam Holdings in the lower half of its industry. The industry median Gross Margin % is 20.72. Tai Kam Holdings' value of 4.51% is 78.2% below this benchmark. Historically, Tai Kam Holdings' own Gross Margin % has ranged from 1.90 to 20.20 over the past decade. While the company's 10-year median is 4.93 vs. the industry median of 20.72, Tai Kam 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 Construction company?
The median Gross Margin % among Construction companies is 20.72, based on 1,722 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. Tai Kam Holdings's current Gross Margin % of 4.51% is 78.2% 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 Tai Kam Holdings and its competitors. For the Construction industry, the median Gross Margin % is 20.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tai Kam Holdings's current Gross Margin % is 4.51%, which is near median its own 10-year median of 4.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tai Kam Holdings stock overvalued right now?
Based on GuruFocus' analysis, Tai Kam Holdings (HKSE:08321) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.18, compared to a current price of HK$1.78 — trading 888.9% above its estimated fair value. The current Gross Margin % is 4.51%, which is near median its 10-year median of 4.93 and 78.2% below the Construction industry median of 20.72. Tai Kam Holdings' overall GF Score™ is 31/100 with 4 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 Tai Kam Holdings (HKSE:08321), the current Gross Margin % is 4.51% as of Oct. 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 Tai Kam Holdings (HKSE:08321) Overvalued in 2026?
Based on GuruFocus' analysis, Tai Kam Holdings stock appears to be overvalued.
The current stock price of HK$1.78 is trading 888.9% above its estimated GF Value™ of HK$0.18.
GuruFocus considers Tai Kam Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:08321:
Gross Margin %: 4.51% (near median its 10-year median of 4.93)
GF Value™: HK$0.18 vs. price of HK$1.78 (888.9% above fair value)
Industry Position: 78.2% below the Construction median (#1573 of 1722)
No single metric tells the full story. See the HKSE:08321 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tai Kam Holdings Ltd is an investment holding company. Along with its subsidiaries, it is principally engaged in the construction business, mainly site formation works and renovation works in Hong Kong. Site formation works generally include piling works, landslip preventive and remedial works for improving or maintaining the stability of slopes and/or retaining walls. Renovation works refer to the fitting-out work for premises in Hong Kong. The group considers its business of undertaking site formation works and renovation works as a main contractor in Hong Kong as a single operating segment.
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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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