Allied IndustrialROCO:4702 +0.99%49 Gross Margin % is 35.38% as of Dec. 2025, which is 192% above its 10-year median of 12.12. GuruFocus rates ROCO:4702 with a GF Score™ of 49/100 and a GF Value™ of NT$2.46 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,560 Chemicals companies, Allied Industrial ranks better than 84.36% on this metric.
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
Allied Industrial had a gross margin of 35.38% 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.
Allied Industrial Gross Margin % Related Terms
Allied Industrial Gross Margin % Historical Data
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The historical data trend for Allied Industrial'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.
ROCO:4702 vs LIN, SHW, ECL: Gross Margin % Comparison
For the Specialty Chemicals subindustry, Allied 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.
Allied Industrial Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Allied Industrial's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Allied 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.
Allied Industrial (ROCO:4702) has a Gross Margin % of 35.38% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Allied Industrial and its competitors. This is 192% above median its historical median of 12.12. Over the past decade, Allied Industrial's Gross Margin % has ranged from 7.02 to 42.15. According to the industry distribution chart, Allied Industrial ranks #244 out of 1560 companies in the Chemicals industry, placing it in the top 15.6%.
Is Allied Industrial's Gross Margin % too high?
Allied Industrial's current Gross Margin % of 35.38% is 192% above median its 10-year median of 12.12. Over the past 10 years, this metric has ranged from a low of 7.02 to a high of 42.15. The Chemicals industry median Gross Margin % is 23.36. Allied Industrial's value of 35.38% is 51.5% above this industry median. Based on the distribution chart, Allied Industrial ranks #244 out of 1560 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Allied Industrial has a GF Score™ of 49/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Allied Industrial's Gross Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Allied Industrial ranks #244 out of 1560 companies for Gross Margin %. This places Allied Industrial in the top 16% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 23.36. Allied Industrial's value of 35.38% is 51.5% above this benchmark. Historically, Allied Industrial's own Gross Margin % has ranged from 7.02 to 42.15 over the past decade. While the company's 10-year median is 12.12 vs. the industry median of 23.36, Allied Industrial 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 Chemicals company?
The median Gross Margin % among Chemicals companies is 23.36, based on 1,560 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. Allied Industrial's current Gross Margin % of 35.38% is 51.5% 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 Allied Industrial and its competitors. For the Chemicals industry, the median Gross Margin % is 23.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Allied Industrial's current Gross Margin % is 35.38%, which is 192% above median its own 10-year median of 12.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Allied Industrial stock overvalued right now?
Based on GuruFocus' analysis, Allied Industrial (ROCO:4702) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$2.46, compared to a current price of NT$10.25 — trading 316.7% above its estimated fair value. The current Gross Margin % is 35.38%, which is 192% above median its 10-year median of 12.12 and 51.5% above the Chemicals industry median of 23.36. Allied Industrial's overall GF Score™ is 49/100 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 Allied Industrial (ROCO:4702), the current Gross Margin % is 35.38% 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 Allied Industrial (ROCO:4702) Overvalued in 2026?
Based on GuruFocus' analysis, Allied Industrial stock appears to be overvalued.
The current stock price of NT$10.25 is trading 316.7% above its estimated GF Value™ of NT$2.46.
GuruFocus considers Allied Industrial to be Significantly Overvalued.
Key valuation signals for ROCO:4702:
Gross Margin %: 35.38% (192% above median its 10-year median of 12.12)
GF Value™: NT$2.46 vs. price of NT$10.25 (316.7% above fair value)
Industry Position: 51.5% above the Chemicals median (#244 of 1560)
No single metric tells the full story. See the ROCO:4702 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Allied Industrial Corp Ltd is engaged in the trading of disperse dyes, automobiles, and commodities, and in the production and sale of cigarette filters, nylon fibers, and polyester fibers. It is also actively investing in new businesses, including mobile distribution, venture capital, and financial technology. The group has two reportable operating segments: Department A and Department B. Department A, which generates the majority of overall revenue, is engaged in the trading of chemical products, such as dyes, in Taiwan. Department B is engaged in the trading of various commodities, while other departments are engaged in strategic investments. Geographically, it operates in Taiwan and Asia, which generate the maximum revenue, as well as other regions.
49GF Score
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