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Le Young Construction Co (ROCO:2599) 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
Le Young Construction Co had a gross margin of 43.80% for the quarter that ended in Dec. 2025 => Durable 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.
Le Young Construction Co Gross Margin % Related Terms
Le Young Construction 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.
For the Real Estate - Diversified subindustry, Le Young Construction 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.
Le Young Construction Co Gross Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Le Young Construction Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Le Young Construction 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.
Le Young Construction Co (ROCO:2599) has a Gross Margin % of 43.80% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Le Young Construction Co and its competitors. This is 33% above median its historical median of 32.92. Over the past decade, Le Young Construction Co's Gross Margin % has ranged from 27.58 to 66.60.
Is Le Young Construction Co's Gross Margin % too high?
Le Young Construction Co's current Gross Margin % of 43.80% is 33% above median its 10-year median of 32.92. Over the past 10 years, this metric has ranged from a low of 27.58 to a high of 66.60. The Real Estate industry median Gross Margin % is 36.95. Le Young Construction Co's value of 43.80% is 18.5% above this industry median.
How does Le Young Construction Co's Gross Margin % compare to HHC?
Le Young Construction Co's Gross Margin % of 43.80% can be compared against companies in the Real Estate industry. The industry median Gross Margin % is 36.95. Le Young Construction Co's value of 43.80% is 18.5% above this benchmark. Historically, Le Young Construction Co's own Gross Margin % has ranged from 27.58 to 66.60 over the past decade. While the company's 10-year median is 32.92 vs. the industry median of 36.95, Le Young Construction 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 Real Estate company?
The median Gross Margin % among Real Estate companies is 36.95, based on 1,641 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. Le Young Construction Co's current Gross Margin % of 43.80% is 18.5% 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 Le Young Construction Co and its competitors. For the Real Estate industry, the median Gross Margin % is 36.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Le Young Construction Co's current Gross Margin % is 43.80%, which is 33% above median its own 10-year median of 32.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Le Young Construction Co stock overvalued right now?
Le Young Construction Co (ROCO:2599) has a current Gross Margin % of 43.80%. The stock's GF Value™ is NT$3.40, compared to a current price of NT$15.15 — trading 345.6% above its estimated fair value. The current Gross Margin % is 43.80%, which is 33% above median its 10-year median of 32.92 and 18.5% above the Real Estate industry median of 36.95. 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 Le Young Construction Co (ROCO:2599), the current Gross Margin % is 43.80% 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.
Le Young Construction Co Ltd is a Taiwan-based company. It is engaged in the development, construction, leasing, and distribution of residential and commercial buildings.
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