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Hua Hsuan Real Estate CoROCO:2740 -0.30%53 Gross Margin % is 41.62% as of Dec. 2025, which is 0% below its 10-year median of 41.74. GuruFocus rates ROCO:2740 with a GF Score™ of 53/100 and a GF Value™ of NT$22.98 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 355 Restaurants companies, Hua Hsuan Real Estate Co ranks worse than 58.87% on this metric.
ROCO:2740's Gross Margin % is ranked worse than 58.87% of 355
companies
in the Restaurants industry
Industry Median: 45.45
vs ROCO:2740: 39.89
Hua Hsuan Real Estate Co had a gross margin of 41.62% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Hua Hsuan Real Estate Co was -2.00% per year.
Hua Hsuan Real Estate Co (ROCO:2740) 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
Hua Hsuan Real Estate Co had a gross margin of 41.62% 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.
Hua Hsuan Real Estate Co Gross Margin % Related Terms
Hua Hsuan Real Estate 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.
ROCO:2740 vs MCD, SBUX, YUM: Gross Margin % Comparison
For the Restaurants subindustry, Hua Hsuan Real Estate 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.
Hua Hsuan Real Estate Co Gross Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Hua Hsuan Real Estate Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hua Hsuan Real Estate 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.
Hua Hsuan Real Estate Co (ROCO:2740) has a Gross Margin % of 41.62% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Hua Hsuan Real Estate Co and its competitors. This is near median its historical median of 41.74. Over the past decade, Hua Hsuan Real Estate Co's Gross Margin % has ranged from 34.09 to 46.37. According to the industry distribution chart, Hua Hsuan Real Estate Co ranks #209 out of 355 companies in the Restaurants industry, placing it in the top 58.9%.
Is Hua Hsuan Real Estate Co's Gross Margin % too high?
Hua Hsuan Real Estate Co's current Gross Margin % of 41.62% is near median its 10-year median of 41.74. Over the past 10 years, this metric has ranged from a low of 34.09 to a high of 46.37. The Restaurants industry median Gross Margin % is 45.45. Hua Hsuan Real Estate Co's value of 41.62% is 8.4% below this industry median. Based on the distribution chart, Hua Hsuan Real Estate Co ranks #209 out of 355 companies in the Restaurants industry, which is below the industry midpoint. Overall, Hua Hsuan Real Estate Co has a GF Score™ of 53/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hua Hsuan Real Estate Co's Gross Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Hua Hsuan Real Estate Co ranks #209 out of 355 companies for Gross Margin %. This places Hua Hsuan Real Estate Co in the lower half of its industry. The industry median Gross Margin % is 45.45. Hua Hsuan Real Estate Co's value of 41.62% is 8.4% below this benchmark. Historically, Hua Hsuan Real Estate Co's own Gross Margin % has ranged from 34.09 to 46.37 over the past decade. While the company's 10-year median is 41.74 vs. the industry median of 45.45, Hua Hsuan Real Estate 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 Restaurants company?
The median Gross Margin % among Restaurants companies is 45.45, based on 355 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. Hua Hsuan Real Estate Co's current Gross Margin % of 41.62% is 8.4% 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 Hua Hsuan Real Estate Co and its competitors. For the Restaurants industry, the median Gross Margin % is 45.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hua Hsuan Real Estate Co's current Gross Margin % is 41.62%, which is near median its own 10-year median of 41.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hua Hsuan Real Estate Co stock overvalued right now?
Based on GuruFocus' analysis, Hua Hsuan Real Estate Co (ROCO:2740) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$22.98, compared to a current price of NT$33.75 — trading 46.9% above its estimated fair value. The current Gross Margin % is 41.62%, which is near median its 10-year median of 41.74 and 8.4% below the Restaurants industry median of 45.45. Hua Hsuan Real Estate Co's overall GF Score™ is 53/100 with 3 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 Hua Hsuan Real Estate Co (ROCO:2740), the current Gross Margin % is 41.62% 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 Hua Hsuan Real Estate Co (ROCO:2740) Overvalued in 2026?
Based on GuruFocus' analysis, Hua Hsuan Real Estate Co stock appears to be overvalued.
The current stock price of NT$33.75 is trading 46.9% above its estimated GF Value™ of NT$22.98.
GuruFocus considers Hua Hsuan Real Estate Co to be Significantly Overvalued.
Key valuation signals for ROCO:2740:
Gross Margin %: 41.62% (near median its 10-year median of 41.74)
GF Value™: NT$22.98 vs. price of NT$33.75 (46.9% above fair value)
Industry Position: 8.4% below the Restaurants median (#209 of 355)
No single metric tells the full story. See the ROCO:2740 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hua Hsuan Real Estate Co Ltd, formerly Mr Onion Corp is a Taiwan-based company engaged in using Italian cuisine as the base and combining the theme of European and American cuisine to prepare meals that suit the taste of the East.
53GF 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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