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Li Ming Development Construction Co (ROCO:6212) 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
Li Ming Development Construction Co had a gross margin of 37.72% 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.
Li Ming Development Construction Co Gross Margin % Related Terms
Li Ming Development Construction Co 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.
Li Ming Development Construction Co Gross Margin % Chart
Li Ming Development Construction Co Gross Margin % Competitor Comparison
For the Real Estate - Development subindustry, Li Ming Development 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.
Li Ming Development Construction Co Gross Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Li Ming Development Construction Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Li Ming Development Construction Co'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.
Li Ming Development Construction Co (ROCO:6212) has a Gross Margin % of 37.72% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Li Ming Development Construction Co and its competitors. This is 53% above median its historical median of 24.62. Over the past decade, Li Ming Development Construction Co's Gross Margin % has ranged from 17.57 to 39.49. According to the industry distribution chart, Li Ming Development Construction Co ranks #769 out of 1644 companies in the Real Estate industry, placing it in the top 46.8%.
Is Li Ming Development Construction Co's Gross Margin % too high?
Li Ming Development Construction Co's current Gross Margin % of 37.72% is 53% above median its 10-year median of 24.62. Over the past 10 years, this metric has ranged from a low of 17.57 to a high of 39.49. The Real Estate industry median Gross Margin % is 36.94. Li Ming Development Construction Co's value of 37.72% is 2.1% above this industry median. Based on the distribution chart, Li Ming Development Construction Co ranks #769 out of 1644 companies in the Real Estate industry, which is above the industry midpoint. Overall, Li Ming Development Construction Co has a GF Score™ of 61/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Li Ming Development Construction Co's Gross Margin % compare to competitors?
According to the Real Estate industry distribution chart, Li Ming Development Construction Co ranks #769 out of 1644 companies for Gross Margin %. This puts Li Ming Development Construction Co in the upper half of its industry. The industry median Gross Margin % is 36.94. Li Ming Development Construction Co's value of 37.72% is 2.1% above this benchmark. Historically, Li Ming Development Construction Co's own Gross Margin % has ranged from 17.57 to 39.49 over the past decade. While the company's 10-year median is 24.62 vs. the industry median of 36.94, Li Ming Development 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 36.94, based on 1,644 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. Li Ming Development Construction Co's current Gross Margin % of 37.72% is 2.1% 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 Li Ming Development Construction Co and its competitors. For the Real Estate industry, the median Gross Margin % is 36.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Li Ming Development Construction Co's current Gross Margin % is 37.72%, which is 53% above median its own 10-year median of 24.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Li Ming Development Construction Co stock overvalued right now?
Based on GuruFocus' analysis, Li Ming Development Construction Co (ROCO:6212) is currently considered Fairly Valued. The stock's GF Value™ is NT$27.42, compared to a current price of NT$28.30 — trading 3.2% above its estimated fair value. The current Gross Margin % is 37.72%, which is 53% above median its 10-year median of 24.62 and 2.1% above the Real Estate industry median of 36.94. Li Ming Development Construction Co's overall GF Score™ is 61/100 with 5 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 Li Ming Development Construction Co (ROCO:6212), the current Gross Margin % is 37.72% 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 Li Ming Development Construction Co (ROCO:6212) Overvalued in 2026?
Based on GuruFocus' analysis, Li Ming Development Construction Co stock appears to be overvalued.
The current stock price of NT$28.30 is trading 3.2% above its estimated GF Value™ of NT$27.42.
GuruFocus considers Li Ming Development Construction Co to be Fairly Valued.
Key valuation signals for ROCO:6212:
Gross Margin %: 37.72% (53% above median its 10-year median of 24.62)
GF Value™: NT$27.42 vs. price of NT$28.30 (3.2% above fair value)
Industry Position: 2.1% above the Real Estate median (#769 of 1644)
No single metric tells the full story. See the ROCO:6212 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Li Ming Development Construction Co Business Description
Li Ming Development Construction Co Ltd is engaged in the construction, leasing and sale of residential building, decorating and sale of construction materials. The company is also involved in landscape and interior design. It operates in one single segment that is the development of the property segment which is mainly engaged in the commissioning construction of residences and buildings and renting properties. It generates a vast majority of its revenues from Construction.
61GF Score
Get the complete analysis for ROCO:6212
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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