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Te ChangROCO:5511 +1.77%87 Gross Margin % is 19.04% as of Dec. 2025, which is 32% above its 10-year median of 14.44. GuruFocus rates ROCO:5511 with a GF Score™ of 87/100 and a GF Value™ of NT$62.60 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,725 Construction companies, Te Chang ranks worse than 57.8% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Te Chang's Gross Profit for the
three
months ended in Dec. 2025 was NT$658 Mil. Te Chang's Revenue for the
three
months ended in Dec. 2025 was NT$3,456 Mil. Therefore, Te Chang's Gross Margin % for the quarter that ended in Dec. 2025 was 19.04%.
The historical rank and industry rank for Te Chang's Gross Margin % or its related term are showing as below:
ROCO:5511'
s Gross Margin % Range Over the Past 10 Years
Min: 9.1 Med: 14.44 Max: 17.57
Current: 17.57
During the past 13 years, the highestGross Margin % of Te Chang was 17.57%. The lowest was 9.10%. And the median was 14.44%.
ROCO:5511's Gross Margin % is ranked worse than 57.8% of 1725
companies
in the Construction industry
Industry Median: 20.7
vs ROCO:5511: 17.57
Te Chang had a gross margin of 19.04% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Te Chang was 4.80% per year.
Te Chang (ROCO:5511) 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
Te Chang had a gross margin of 19.04% for the quarter that ended in Dec. 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.
Te Chang Gross Margin % Related Terms
Te Chang Gross Margin % Historical Data
* Premium members only.
The historical data trend for Te Chang'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:5511 vs PWR, FIX, EME: Gross Margin % Comparison
For the Engineering & Construction subindustry, Te Chang'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.
Te Chang Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Te Chang's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Te Chang'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.
Te Chang (ROCO:5511) has a Gross Margin % of 19.04% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Te Chang and its competitors. This is 32% above median its historical median of 14.44. Over the past decade, Te Chang's Gross Margin % has ranged from 9.10 to 17.57. According to the industry distribution chart, Te Chang ranks #997 out of 1725 companies in the Construction industry, placing it in the top 57.8%.
Is Te Chang's Gross Margin % too high?
Te Chang's current Gross Margin % of 19.04% is 32% above median its 10-year median of 14.44. Over the past 10 years, this metric has ranged from a low of 9.10 to a high of 17.57. The Construction industry median Gross Margin % is 20.70. Te Chang's value of 19.04% is 8% below this industry median. Based on the distribution chart, Te Chang ranks #997 out of 1725 companies in the Construction industry, which is below the industry midpoint. Overall, Te Chang has a GF Score™ of 87/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Te Chang's Gross Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Te Chang ranks #997 out of 1725 companies for Gross Margin %. This places Te Chang in the lower half of its industry. The industry median Gross Margin % is 20.70. Te Chang's value of 19.04% is 8% below this benchmark. Historically, Te Chang's own Gross Margin % has ranged from 9.10 to 17.57 over the past decade. While the company's 10-year median is 14.44 vs. the industry median of 20.70, Te Chang 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 20.70, based on 1,725 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. Te Chang's current Gross Margin % of 19.04% is 8% 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 Te Chang and its competitors. For the Construction industry, the median Gross Margin % is 20.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Te Chang's current Gross Margin % is 19.04%, which is 32% above median its own 10-year median of 14.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Te Chang stock overvalued right now?
Based on GuruFocus' analysis, Te Chang (ROCO:5511) is currently considered Fairly Valued. The stock's GF Value™ is NT$62.60, compared to a current price of NT$69.10 — trading 10.4% above its estimated fair value. The current Gross Margin % is 19.04%, which is 32% above median its 10-year median of 14.44 and 8% below the Construction industry median of 20.70. Te Chang's overall GF Score™ is 87/100 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 Te Chang (ROCO:5511), the current Gross Margin % is 19.04% 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 Te Chang (ROCO:5511) Overvalued in 2026?
Based on GuruFocus' analysis, Te Chang stock appears to be overvalued.
The current stock price of NT$69.10 is trading 10.4% above its estimated GF Value™ of NT$62.60.
GuruFocus considers Te Chang to be Fairly Valued.
Key valuation signals for ROCO:5511:
Gross Margin %: 19.04% (32% above median its 10-year median of 14.44)
GF Value™: NT$62.60 vs. price of NT$69.10 (10.4% above fair value)
Industry Position: 8% below the Construction median (#997 of 1725)
No single metric tells the full story. See the ROCO:5511 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Te Chang main business operations include contracting for construction and civil engineering projects. The Group is engaged in the construction and real estate leasing business and is a single reportable segment. The company has presence in Taiwan, and Thailand. The company generates majority of revenue from Taiwan. The company's projects are Hospital Project, School Project, social housing, Factory building project, Commercial buildings, office building, civil Engineering, Other projects.
87GF Score
Get the complete analysis for ROCO:5511
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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