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Chernan Metal IndustrialROCO:3631 +0.15%27 Gross Margin % is 24.23% as of Dec. 2025, which is 258% above its 10-year median of 6.77. GuruFocus rates ROCO:3631 with a GF Score™ of 27/100 and a GF Value™ of NT$10.09 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 2,996 Industrial Products companies, Chernan Metal Industrial ranks better than 52.34% on this metric.
ROCO:3631's Gross Margin % is ranked better than 52.34% of 2996
companies
in the Industrial Products industry
Industry Median: 26.8
vs ROCO:3631: 27.74
Chernan Metal Industrial had a gross margin of 24.23% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Chernan Metal Industrial was 34.90% per year.
Chernan Metal Industrial (ROCO:3631) 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
Chernan Metal Industrial had a gross margin of 24.23% 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.
Chernan Metal Industrial Gross Margin % Related Terms
Chernan Metal Industrial 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:3631 vs CRS, ATI, MLI: Gross Margin % Comparison
For the Metal Fabrication subindustry, Chernan Metal Industrial'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.
Chernan Metal Industrial Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Chernan Metal Industrial's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Chernan Metal Industrial'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.
Chernan Metal Industrial (ROCO:3631) has a Gross Margin % of 24.23% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Chernan Metal Industrial and its competitors. This is 258% above median its historical median of 6.77. Over the past decade, Chernan Metal Industrial's Gross Margin % has ranged from 0.94 to 29.65. According to the industry distribution chart, Chernan Metal Industrial ranks #1428 out of 2996 companies in the Industrial Products industry, placing it in the top 47.7%.
Is Chernan Metal Industrial's Gross Margin % too high?
Chernan Metal Industrial's current Gross Margin % of 24.23% is 258% above median its 10-year median of 6.77. Over the past 10 years, this metric has ranged from a low of 0.94 to a high of 29.65. The Industrial Products industry median Gross Margin % is 26.80. Chernan Metal Industrial's value of 24.23% is 9.6% below this industry median. Based on the distribution chart, Chernan Metal Industrial ranks #1428 out of 2996 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Chernan Metal Industrial has a GF Score™ of 27/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Chernan Metal Industrial's Gross Margin % compare to CRS and ATI?
According to the Industrial Products industry distribution chart, Chernan Metal Industrial ranks #1428 out of 2996 companies for Gross Margin %. This puts Chernan Metal Industrial in the upper half of its industry. The industry median Gross Margin % is 26.80. Chernan Metal Industrial's value of 24.23% is 9.6% below this benchmark. Historically, Chernan Metal Industrial's own Gross Margin % has ranged from 0.94 to 29.65 over the past decade. While the company's 10-year median is 6.77 vs. the industry median of 26.80, Chernan Metal Industrial 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.80, based on 2,996 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. Chernan Metal Industrial's current Gross Margin % of 24.23% is 9.6% 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 Chernan Metal Industrial and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chernan Metal Industrial's current Gross Margin % is 24.23%, which is 258% above median its own 10-year median of 6.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chernan Metal Industrial stock overvalued right now?
Based on GuruFocus' analysis, Chernan Metal Industrial (ROCO:3631) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$10.09, compared to a current price of NT$32.85 — trading 225.6% above its estimated fair value. The current Gross Margin % is 24.23%, which is 258% above median its 10-year median of 6.77 and 9.6% below the Industrial Products industry median of 26.80. Chernan Metal Industrial's overall GF Score™ is 27/100 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 Chernan Metal Industrial (ROCO:3631), the current Gross Margin % is 24.23% 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 Chernan Metal Industrial (ROCO:3631) Overvalued in 2026?
Based on GuruFocus' analysis, Chernan Metal Industrial stock appears to be overvalued.
The current stock price of NT$32.85 is trading 225.6% above its estimated GF Value™ of NT$10.09.
GuruFocus considers Chernan Metal Industrial to be Significantly Overvalued.
Key valuation signals for ROCO:3631:
Gross Margin %: 24.23% (258% above median its 10-year median of 6.77)
GF Value™: NT$10.09 vs. price of NT$32.85 (225.6% above fair value)
Industry Position: 9.6% below the Industrial Products median (#1428 of 2996)
No single metric tells the full story. See the ROCO:3631 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chernan Metal Industrial Corp is engaged in Manufacture of Metal Structure and Architectural Components, Screw, Nut and Rivet Manufacturing, Spring Manufacturing, Lock Manufacturing, Metal Wire Products Manufacturing, Other Metal Products Manufacturing, Surface Treatments, Wholesale of Hardware, Wholesale of Electronic Materials, Retail Sale of Hardware, and Retail Sale of Electronic Materials. The company's segment includes the domestic division and the overseas division. The domestic division is mainly engaged in the manufacture and sale of solder products and the trading of semiconductor products, while the overseas division is mainly engaged in the manufacture and sale of solder products. The company generates the majority of its revenue from overseas segment.
27GF 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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