Rich Development Co (ROCO:5512) Gross Margin %: 23.53% (As of Dec. 2025) — 21% Above Median

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ROCO:5512 Rich Development Co Ltd ROCO:5512
67 GF Score
Price NT$7.85
GF Value NT$10.44
Valuation Modestly Undervalued
! 8 Warning Signs
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What is Rich Development Co Gross Margin %?

Rich Development Co ROCO:5512 -2.00% 67 Gross Margin % is 23.53% as of Dec. 2025, which is 21% above its 10-year median of 19.40. GuruFocus rates ROCO:5512 with a GF Score™ of 67/100 and a GF Value™ of NT$10.44 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 1,641 Real Estate companies, Rich Development Co ranks worse than 73.55% on this metric.

Gross Margin % is calculated as gross profit divided by its revenue. Rich Development Co's Gross Profit for the three months ended in Dec. 2025 was NT$491 Mil. Rich Development Co's Revenue for the three months ended in Dec. 2025 was NT$2,087 Mil. Therefore, Rich Development Co's Gross Margin % for the quarter that ended in Dec. 2025 was 23.53%.


The historical rank and industry rank for Rich Development Co's Gross Margin % or its related term are showing as below:

ROCO:5512' s Gross Margin % Range Over the Past 10 Years
Min: 11.34   Med: 19.4   Max: 35.1
Current: 21.27


During the past 13 years, the highest Gross Margin % of Rich Development Co was 35.10%. The lowest was 11.34%. And the median was 19.40%.

ROCO:5512's Gross Margin % is ranked worse than
73.55% of 1641 companies
in the Real Estate industry
Industry Median: 36.95 vs ROCO:5512: 21.27

Rich Development Co had a gross margin of 23.53% for the quarter that ended in Dec. 2025 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Rich Development Co was 3.70% per year.


Rich Development Co  (ROCO:5512) 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

Rich Development Co had a gross margin of 23.53% 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.


Rich Development Co Gross Margin % Related Terms


Rich Development Co Gross Margin % Historical Data

* Premium members only.

The historical data trend for Rich Development Co'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.

Rich Development Co Gross Margin % Chart

Rich Development Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 19.92 11.34 15.32 17.41 21.27

Rich Development Co Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 17.64 23.93 22.41 15.12 23.53

Rich Development Co Gross Margin % Competitor Comparison

For the Real Estate - Diversified subindustry, Rich Development 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.


Rich Development Co Gross Margin % vs Real Estate Industry

For the Real Estate industry and Real Estate sector, Rich Development Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Rich Development Co's Gross Margin % falls into.


ROCO:5512
67GF Score
Rich Development Co Ltd ROCO:5512
Gross Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Rich Development Co Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Rich Development Co's Gross Margin for the fiscal year that ended in Dec. 2025 is calculated as

Gross Margin % (A: Dec. 2025 )=Gross Profit (A: Dec. 2025 ) / Revenue (A: Dec. 2025 )
=1488.5 / 6997.901
=(Revenue - Cost of Goods Sold) / Revenue
=(6997.901 - 5509.419) / 6997.901
=21.27 %

Rich Development Co's Gross Margin for the quarter that ended in Dec. 2025 is calculated as


Gross Margin % (Q: Dec. 2025 )=Gross Profit (Q: Dec. 2025 ) / Revenue (Q: Dec. 2025 )
=491.1 / 2087.262
=(Revenue - Cost of Goods Sold) / Revenue
=(2087.262 - 1596.197) / 2087.262
=23.53 %

* 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.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 23.53% mean?
Rich Development Co (ROCO:5512) has a Gross Margin % of 23.53% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Rich Development Co and its competitors. This is 21% above median its historical median of 19.40. Over the past decade, Rich Development Co's Gross Margin % has ranged from 11.34 to 35.10. According to the industry distribution chart, Rich Development Co ranks #1207 out of 1641 companies in the Real Estate industry, placing it in the top 73.6%.
Is Rich Development Co's Gross Margin % too high?
Rich Development Co's current Gross Margin % of 23.53% is 21% above median its 10-year median of 19.40. Over the past 10 years, this metric has ranged from a low of 11.34 to a high of 35.10. The Real Estate industry median Gross Margin % is 36.95. Rich Development Co's value of 23.53% is 36.3% below this industry median. Based on the distribution chart, Rich Development Co ranks #1207 out of 1641 companies in the Real Estate industry, which is below the industry midpoint. Overall, Rich Development Co has a GF Score™ of 67/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Rich Development Co's Gross Margin % compare to competitors?
According to the Real Estate industry distribution chart, Rich Development Co ranks #1207 out of 1641 companies for Gross Margin %. This places Rich Development Co in the lower half of its industry. The industry median Gross Margin % is 36.95. Rich Development Co's value of 23.53% is 36.3% below this benchmark. Historically, Rich Development Co's own Gross Margin % has ranged from 11.34 to 35.10 over the past decade. While the company's 10-year median is 19.40 vs. the industry median of 36.95, Rich Development 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 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. Rich Development Co's current Gross Margin % of 23.53% is 36.3% 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 Rich Development 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. Rich Development Co's current Gross Margin % is 23.53%, which is 21% above median its own 10-year median of 19.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rich Development Co stock overvalued right now?
Based on GuruFocus' analysis, Rich Development Co (ROCO:5512) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$10.44, compared to a current price of NT$7.85 — trading 24.8% below its estimated fair value. The current Gross Margin % is 23.53%, which is 21% above median its 10-year median of 19.40 and 36.3% below the Real Estate industry median of 36.95. Rich Development Co's overall GF Score™ is 67/100 with 8 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 Rich Development Co (ROCO:5512), the current Gross Margin % is 23.53% 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 Rich Development Co (ROCO:5512) Overvalued in 2026?

Based on GuruFocus' analysis, Rich Development Co stock appears to be undervalued. The current stock price of NT$7.85 is trading 24.8% below its estimated GF Value™ of NT$10.44. GuruFocus considers Rich Development Co to be Modestly Undervalued.

Key valuation signals for ROCO:5512:

  • Gross Margin %: 23.53% (21% above median its 10-year median of 19.40)
  • GF Value™: NT$10.44 vs. price of NT$7.85 (24.8% below fair value)
  • GF Score™: 67/100 with 8 warning signs
  • Industry Position: 36.3% below the Real Estate median (#1207 of 1641)

No single metric tells the full story. See the ROCO:5512 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Rich Development Co Business Description

Address No. 99, Chi Lin Road, 8th Floor, Jhongshan District, Taipei, TWN, 104
Rich Development Co Ltd is a Taiwan-based company engaged in the construction, development, leasing, and distribution of residential and commercial buildings. The company's main business includes commissioning manufacturers to build commercial buildings and lease and sale of public housing; commissioned by government industrial authorities to handle the development, leasing, and management of industrial areas; construction of sewage treatment plants and operation of sewage treatment projects; operation of resort hotels and travel agency operations and others. Its segments include the Construction segment, the Sewage treatment segment: and the Tourist hotel segment.
67GF Score

Get the complete analysis for ROCO:5512

Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

NT$7.85
Price
NT$10.44
GF Value