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ROCO:8038's Gross Margin % is ranked better than 55.41% of 2996
companies
in the Industrial Products industry
Industry Median: 26.8
vs ROCO:8038: 28.87
Changs Ascending Enterprise Co had a gross margin of 18.12% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
Changs Ascending Enterprise Co (ROCO:8038) 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
Changs Ascending Enterprise Co had a gross margin of 18.12% 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.
Changs Ascending Enterprise Co Gross Margin % Related Terms
Changs Ascending Enterprise 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.
Changs Ascending Enterprise Co Gross Margin % Chart
For the Electrical Equipment & Parts subindustry, Changs Ascending Enterprise 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.
Changs Ascending Enterprise Co Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Changs Ascending Enterprise Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Changs Ascending Enterprise 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.
Changs Ascending Enterprise Co (ROCO:8038) has a Gross Margin % of 18.12% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Changs Ascending Enterprise Co and its competitors. This is near median its historical median of 16.97. According to the industry distribution chart, Changs Ascending Enterprise Co ranks #1336 out of 2996 companies in the Industrial Products industry, placing it in the top 44.6%.
Is Changs Ascending Enterprise Co's Gross Margin % too high?
Changs Ascending Enterprise Co's current Gross Margin % of 18.12% is near median its 10-year median of 16.97. The Industrial Products industry median Gross Margin % is 26.80. Changs Ascending Enterprise Co's value of 18.12% is 32.4% below this industry median. Based on the distribution chart, Changs Ascending Enterprise Co ranks #1336 out of 2996 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Changs Ascending Enterprise Co has a GF Score™ of 60/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Changs Ascending Enterprise Co's Gross Margin % compare to VRT and BE?
According to the Industrial Products industry distribution chart, Changs Ascending Enterprise Co ranks #1336 out of 2996 companies for Gross Margin %. This puts Changs Ascending Enterprise Co in the upper half of its industry. The industry median Gross Margin % is 26.80. Changs Ascending Enterprise Co's value of 18.12% is 32.4% below this benchmark. While the company's 10-year median is 16.97 vs. the industry median of 26.80, Changs Ascending Enterprise 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.80, based on 2,996 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. Changs Ascending Enterprise Co's current Gross Margin % of 18.12% is 32.4% 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 Changs Ascending Enterprise Co and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Changs Ascending Enterprise Co's current Gross Margin % is 18.12%, which is near median its own 10-year median of 16.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Changs Ascending Enterprise Co stock overvalued right now?
Based on GuruFocus' analysis, Changs Ascending Enterprise Co (ROCO:8038) is currently considered Possible Value Trap. The stock's GF Value™ is NT$92.34, compared to a current price of NT$38.55 — trading 58.3% below its estimated fair value. The current Gross Margin % is 18.12%, which is near median its 10-year median of 16.97 and 32.4% below the Industrial Products industry median of 26.80. Changs Ascending Enterprise Co's overall GF Score™ is 60/100 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 Changs Ascending Enterprise Co (ROCO:8038), the current Gross Margin % is 18.12% 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 Changs Ascending Enterprise Co (ROCO:8038) Overvalued in 2026?
Based on GuruFocus' analysis, Changs Ascending Enterprise Co stock appears to be undervalued.
The current stock price of NT$38.55 is trading 58.3% below its estimated GF Value™ of NT$92.34.
GuruFocus considers Changs Ascending Enterprise Co to be Possible Value Trap.
Key valuation signals for ROCO:8038:
Gross Margin %: 18.12% (near median its 10-year median of 16.97)
GF Value™: NT$92.34 vs. price of NT$38.55 (58.3% below fair value)
Industry Position: 32.4% below the Industrial Products median (#1336 of 2996)
No single metric tells the full story. See the ROCO:8038 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Changs Ascending Enterprise Co Business Description
Changs Ascending Enterprise Co Ltd is engaged in the manufacturing, research, and development of lithium-iron batteries and its materials, as well as technology transfer and leasing, and sales of battery modules. The company derives maximum revenue from Lithium-iron battery modules.
60GF Score
Get the complete analysis for ROCO:8038
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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