Taiwan Hopax Chemicals MFG Co (ROCO:6509) 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
Taiwan Hopax Chemicals MFG Co had a gross margin of 34.36% 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.
Taiwan Hopax Chemicals MFG Co Gross Margin % Related Terms
Taiwan Hopax Chemicals MFG 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.
Taiwan Hopax Chemicals MFG Co Gross Margin % Chart
ROCO:6509 vs LIN, SHW, ECL: Gross Margin % Comparison
For the Specialty Chemicals subindustry, Taiwan Hopax Chemicals MFG 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.
Taiwan Hopax Chemicals MFG Co Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Taiwan Hopax Chemicals MFG Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Taiwan Hopax Chemicals MFG 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.
Taiwan Hopax Chemicals MFG Co (ROCO:6509) has a Gross Margin % of 34.36% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Taiwan Hopax Chemicals MFG Co and its competitors. This is 24% above median its historical median of 27.78. Over the past decade, Taiwan Hopax Chemicals MFG Co's Gross Margin % has ranged from 21.08 to 32.35. According to the industry distribution chart, Taiwan Hopax Chemicals MFG Co ranks #455 out of 1560 companies in the Chemicals industry, placing it in the top 29.2%.
Is Taiwan Hopax Chemicals MFG Co's Gross Margin % too high?
Taiwan Hopax Chemicals MFG Co's current Gross Margin % of 34.36% is 24% above median its 10-year median of 27.78. Over the past 10 years, this metric has ranged from a low of 21.08 to a high of 32.35. The Chemicals industry median Gross Margin % is 23.36. Taiwan Hopax Chemicals MFG Co's value of 34.36% is 47.1% above this industry median. Based on the distribution chart, Taiwan Hopax Chemicals MFG Co ranks #455 out of 1560 companies in the Chemicals industry, which is above the industry midpoint. Overall, Taiwan Hopax Chemicals MFG Co has a GF Score™ of 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Taiwan Hopax Chemicals MFG Co's Gross Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Taiwan Hopax Chemicals MFG Co ranks #455 out of 1560 companies for Gross Margin %. This puts Taiwan Hopax Chemicals MFG Co in the upper half of its industry. The industry median Gross Margin % is 23.36. Taiwan Hopax Chemicals MFG Co's value of 34.36% is 47.1% above this benchmark. Historically, Taiwan Hopax Chemicals MFG Co's own Gross Margin % has ranged from 21.08 to 32.35 over the past decade. While the company's 10-year median is 27.78 vs. the industry median of 23.36, Taiwan Hopax Chemicals MFG 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 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. Taiwan Hopax Chemicals MFG Co's current Gross Margin % of 34.36% is 47.1% 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 Taiwan Hopax Chemicals MFG Co 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. Taiwan Hopax Chemicals MFG Co's current Gross Margin % is 34.36%, which is 24% above median its own 10-year median of 27.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Taiwan Hopax Chemicals MFG Co stock overvalued right now?
Based on GuruFocus' analysis, Taiwan Hopax Chemicals MFG Co (ROCO:6509) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$32.51, compared to a current price of NT$52.30 — trading 60.9% above its estimated fair value. The current Gross Margin % is 34.36%, which is 24% above median its 10-year median of 27.78 and 47.1% above the Chemicals industry median of 23.36. Taiwan Hopax Chemicals MFG Co's overall GF Score™ is 76/100 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 Taiwan Hopax Chemicals MFG Co (ROCO:6509), the current Gross Margin % is 34.36% 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 Taiwan Hopax Chemicals MFG Co (ROCO:6509) Overvalued in 2026?
Based on GuruFocus' analysis, Taiwan Hopax Chemicals MFG Co stock appears to be overvalued.
The current stock price of NT$52.30 is trading 60.9% above its estimated GF Value™ of NT$32.51.
GuruFocus considers Taiwan Hopax Chemicals MFG Co to be Significantly Overvalued.
Key valuation signals for ROCO:6509:
Gross Margin %: 34.36% (24% above median its 10-year median of 27.78)
GF Value™: NT$32.51 vs. price of NT$52.30 (60.9% above fair value)
Industry Position: 47.1% above the Chemicals median (#455 of 1560)
No single metric tells the full story. See the ROCO:6509 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Taiwan Hopax Chemicals MFG Co Business Description
Taiwan Hopax Chemicals MFG Co Ltd manufactures, processes and sells chemical raw materials for pharmaceuticals, industrial, paper making and office stationery. Its product range includes Biopharmaceuticals, Biological reagents, Cell culture medium, Diagnostic Reagent Kits, Electroplating Additives, Lithium battery additives, Dispersants, Carbon-free copy paper specialty chemicals, Wet End Chemicals, Coating Additives, and Boiler water treatment agent. The company's segments include Specialty Chemicals, Fine Chemicals, Office Stationery, and Other segment.
76GF Score
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