Fong Chien Construction Co (ROCO:5523) Gross Margin %: 88.00% (As of Dec. 2025) — 216% Above Median

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ROCO:5523 Fong Chien Construction Co Ltd ROCO:5523
38 GF Score
Price NT$30.40
GF Value NT$0.11
Valuation Significantly Overvalued
! 10 Warning Signs
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What is Fong Chien Construction Co Gross Margin %?

Fong Chien Construction Co ROCO:5523 38 Gross Margin % is 88.00% as of Dec. 2025, which is 216% above its 10-year median of 27.84. GuruFocus rates ROCO:5523 with a GF Score™ of 38/100 and a GF Value™ of NT$0.11 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 1,641 Real Estate companies, Fong Chien Construction Co ranks better than 85.68% on this metric.

Gross Margin % is calculated as gross profit divided by its revenue. Fong Chien Construction Co's Gross Profit for the three months ended in Dec. 2025 was NT$0.98 Mil. Fong Chien Construction Co's Revenue for the three months ended in Dec. 2025 was NT$1.12 Mil. Therefore, Fong Chien Construction Co's Gross Margin % for the quarter that ended in Dec. 2025 was 88.00%.


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

ROCO:5523' s Gross Margin % Range Over the Past 10 Years
Min: 17.3   Med: 27.84   Max: 75.57
Current: 75.57


During the past 13 years, the highest Gross Margin % of Fong Chien Construction Co was 75.57%. The lowest was 17.30%. And the median was 27.84%.

ROCO:5523's Gross Margin % is ranked better than
85.68% of 1641 companies
in the Real Estate industry
Industry Median: 36.95 vs ROCO:5523: 75.57

Fong Chien Construction Co had a gross margin of 88.00% for the quarter that ended in Dec. 2025 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Fong Chien Construction Co was 22.40% per year.


Fong Chien Construction Co  (ROCO:5523) 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

Fong Chien Construction Co had a gross margin of 88.00% 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.


Fong Chien Construction Co Gross Margin % Related Terms


Fong Chien Construction Co Gross Margin % Historical Data

* Premium members only.

The historical data trend for Fong Chien Construction 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.

Fong Chien Construction Co Gross Margin % Chart

Fong Chien Construction 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 28.62 30.23 22.64 28.48 75.57

Fong Chien Construction 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 29.85 88.26 88.04 53.23 88.00

ROCO:5523 vs CBRE, BEKE, JLL: Gross Margin % Comparison

For the Real Estate Services subindustry, Fong Chien Construction 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.


Fong Chien Construction Co Gross Margin % vs Real Estate Industry

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

* The bar in red indicates where Fong Chien Construction Co's Gross Margin % falls into.


ROCO:5523
38GF Score
Fong Chien Construction Co Ltd ROCO:5523
Gross Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Fong Chien Construction Co Gross Margin % Calculation

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

Fong Chien Construction 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 )
=4 / 5.248
=(Revenue - Cost of Goods Sold) / Revenue
=(5.248 - 1.282) / 5.248
=75.57 %

Fong Chien Construction 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 )
=1 / 1.117
=(Revenue - Cost of Goods Sold) / Revenue
=(1.117 - 0.134) / 1.117
=88.00 %

* 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 88.00% mean?
Fong Chien Construction Co (ROCO:5523) has a Gross Margin % of 88.00% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Fong Chien Construction Co and its competitors. This is 216% above median its historical median of 27.84. Over the past decade, Fong Chien Construction Co's Gross Margin % has ranged from 17.30 to 75.57. According to the industry distribution chart, Fong Chien Construction Co ranks #235 out of 1641 companies in the Real Estate industry, placing it in the top 14.3%.
Is Fong Chien Construction Co's Gross Margin % too high?
Fong Chien Construction Co's current Gross Margin % of 88.00% is 216% above median its 10-year median of 27.84. Over the past 10 years, this metric has ranged from a low of 17.30 to a high of 75.57. The Real Estate industry median Gross Margin % is 36.95. Fong Chien Construction Co's value of 88.00% is 138.2% above this industry median. Based on the distribution chart, Fong Chien Construction Co ranks #235 out of 1641 companies in the Real Estate industry, which is in the top quartile — a strong position relative to peers. Overall, Fong Chien Construction Co has a GF Score™ of 38/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Fong Chien Construction Co's Gross Margin % compare to CBRE and BEKE?
According to the Real Estate industry distribution chart, Fong Chien Construction Co ranks #235 out of 1641 companies for Gross Margin %. This places Fong Chien Construction Co in the top 14% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 36.95. Fong Chien Construction Co's value of 88.00% is 138.2% above this benchmark. Historically, Fong Chien Construction Co's own Gross Margin % has ranged from 17.30 to 75.57 over the past decade. While the company's 10-year median is 27.84 vs. the industry median of 36.95, Fong Chien Construction Co 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 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. Fong Chien Construction Co's current Gross Margin % of 88.00% is 138.2% 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 Fong Chien Construction 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. Fong Chien Construction Co's current Gross Margin % is 88.00%, which is 216% above median its own 10-year median of 27.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fong Chien Construction Co stock overvalued right now?
Based on GuruFocus' analysis, Fong Chien Construction Co (ROCO:5523) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$0.11, compared to a current price of NT$30.40 — trading 27536.4% above its estimated fair value. The current Gross Margin % is 88.00%, which is 216% above median its 10-year median of 27.84 and 138.2% above the Real Estate industry median of 36.95. Fong Chien Construction Co's overall GF Score™ is 38/100 with 10 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 Fong Chien Construction Co (ROCO:5523), the current Gross Margin % is 88.00% 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 Fong Chien Construction Co (ROCO:5523) Overvalued in 2026?

Based on GuruFocus' analysis, Fong Chien Construction Co stock appears to be overvalued. The current stock price of NT$30.40 is trading 27536.4% above its estimated GF Value™ of NT$0.11. GuruFocus considers Fong Chien Construction Co to be Significantly Overvalued.

Key valuation signals for ROCO:5523:

  • Gross Margin %: 88.00% (216% above median its 10-year median of 27.84)
  • GF Value™: NT$0.11 vs. price of NT$30.40 (27536.4% above fair value)
  • GF Score™: 38/100 with 10 warning signs
  • Industry Position: 138.2% above the Real Estate median (#235 of 1641)

No single metric tells the full story. See the ROCO:5523 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Fong Chien Construction Co Business Description

Address Taiwan Boulevard, 25th Floor-1, No. 501, Section 2, West District, Taichung, TWN, 403
Fong Chien Construction Co Ltd is engaged in mandating construction enterprises to build public housing, leases and sales of commercial buildings, trading, import and export of building materials. The operating segment of the company is the Construction division. Geographically, the firm generates all of its revenue from Taiwan.
38GF Score

Get the complete analysis for ROCO:5523

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

NT$30.40
Price
NT$0.11
GF Value