Redwood Group (ROCO:8426) Gross Margin %: 32.06% (As of Dec. 2025) — 21% Above Median

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ROCO:8426 Redwood Group Ltd ROCO:8426
69 GF Score
Price NT$20.15
GF Value NT$50.08
Valuation Significantly Undervalued
! 4 Warning Signs
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What is Redwood Group Gross Margin %?

Redwood Group ROCO:8426 +0.75% 69 Gross Margin % is 32.06% as of Dec. 2025, which is 21% above its 10-year median of 26.39. GuruFocus rates ROCO:8426 with a GF Score™ of 69/100 and a GF Value™ of NT$50.08 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 417 Furnishings, Fixtures & Appliances companies, Redwood Group ranks worse than 56.59% on this metric.

Gross Margin % is calculated as gross profit divided by its revenue. Redwood Group's Gross Profit for the three months ended in Dec. 2025 was NT$260 Mil. Redwood Group's Revenue for the three months ended in Dec. 2025 was NT$812 Mil. Therefore, Redwood Group's Gross Margin % for the quarter that ended in Dec. 2025 was 32.06%.


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

ROCO:8426' s Gross Margin % Range Over the Past 10 Years
Min: 8.64   Med: 26.39   Max: 37.48
Current: 26.62


During the past 13 years, the highest Gross Margin % of Redwood Group was 37.48%. The lowest was 8.64%. And the median was 26.39%.

ROCO:8426's Gross Margin % is ranked worse than
56.59% of 417 companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 29.49 vs ROCO:8426: 26.62

Redwood Group had a gross margin of 32.06% for the quarter that ended in Dec. 2025 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Redwood Group was 22.10% per year.


Redwood Group  (ROCO:8426) 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

Redwood Group had a gross margin of 32.06% 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.


Redwood Group Gross Margin % Related Terms


Redwood Group Gross Margin % Historical Data

* Premium members only.

The historical data trend for Redwood Group'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.

Redwood Group Gross Margin % Chart

Redwood Group 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 21.58 26.15 32.14 31.56 26.62

Redwood Group 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 32.60 22.08 19.72 29.04 32.06

ROCO:8426 vs SN, SGI, MHK: Gross Margin % Comparison

For the Furnishings, Fixtures & Appliances subindustry, Redwood Group'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.


Redwood Group Gross Margin % vs Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Redwood Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Redwood Group's Gross Margin % falls into.


ROCO:8426
69GF Score
Redwood Group Ltd ROCO:8426
Gross Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Redwood Group Gross Margin % Calculation

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

Redwood Group'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 )
=720.5 / 2706.658
=(Revenue - Cost of Goods Sold) / Revenue
=(2706.658 - 1986.168) / 2706.658
=26.62 %

Redwood Group'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 )
=260.4 / 812.083
=(Revenue - Cost of Goods Sold) / Revenue
=(812.083 - 551.728) / 812.083
=32.06 %

* 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 32.06% mean?
Redwood Group (ROCO:8426) has a Gross Margin % of 32.06% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Redwood Group and its competitors. This is 21% above median its historical median of 26.39. Over the past decade, Redwood Group's Gross Margin % has ranged from 8.64 to 37.48. According to the industry distribution chart, Redwood Group ranks #236 out of 417 companies in the Furnishings, Fixtures & Appliances industry, placing it in the top 56.6%.
Is Redwood Group's Gross Margin % too high?
Redwood Group's current Gross Margin % of 32.06% is 21% above median its 10-year median of 26.39. Over the past 10 years, this metric has ranged from a low of 8.64 to a high of 37.48. The Furnishings, Fixtures & Appliances industry median Gross Margin % is 29.49. Redwood Group's value of 32.06% is 8.7% above this industry median. Based on the distribution chart, Redwood Group ranks #236 out of 417 companies in the Furnishings, Fixtures & Appliances industry, which is below the industry midpoint. Overall, Redwood Group has a GF Score™ of 69/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Redwood Group's Gross Margin % compare to SN and SGI?
According to the Furnishings, Fixtures & Appliances industry distribution chart, Redwood Group ranks #236 out of 417 companies for Gross Margin %. This places Redwood Group in the lower half of its industry. The industry median Gross Margin % is 29.49. Redwood Group's value of 32.06% is 8.7% above this benchmark. Historically, Redwood Group's own Gross Margin % has ranged from 8.64 to 37.48 over the past decade. While the company's 10-year median is 26.39 vs. the industry median of 29.49, Redwood Group 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 Furnishings, Fixtures & Appliances company?
The median Gross Margin % among Furnishings, Fixtures & Appliances companies is 29.49, based on 417 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. Redwood Group's current Gross Margin % of 32.06% is 8.7% 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 Redwood Group and its competitors. For the Furnishings, Fixtures & Appliances industry, the median Gross Margin % is 29.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Redwood Group's current Gross Margin % is 32.06%, which is 21% above median its own 10-year median of 26.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Redwood Group stock overvalued right now?
Based on GuruFocus' analysis, Redwood Group (ROCO:8426) is currently considered Significantly Undervalued. The stock's GF Value™ is NT$50.08, compared to a current price of NT$20.15 — trading 59.8% below its estimated fair value. The current Gross Margin % is 32.06%, which is 21% above median its 10-year median of 26.39 and 8.7% above the Furnishings, Fixtures & Appliances industry median of 29.49. Redwood Group's overall GF Score™ is 69/100 with 4 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 Redwood Group (ROCO:8426), the current Gross Margin % is 32.06% 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 Redwood Group (ROCO:8426) Overvalued in 2026?

Based on GuruFocus' analysis, Redwood Group stock appears to be undervalued. The current stock price of NT$20.15 is trading 59.8% below its estimated GF Value™ of NT$50.08. GuruFocus considers Redwood Group to be Significantly Undervalued.

Key valuation signals for ROCO:8426:

  • Gross Margin %: 32.06% (21% above median its 10-year median of 26.39)
  • GF Value™: NT$50.08 vs. price of NT$20.15 (59.8% below fair value)
  • GF Score™: 69/100 with 4 warning signs
  • Industry Position: 8.7% above the Furnishings, Fixtures & Appliances median (#236 of 417)

No single metric tells the full story. See the ROCO:8426 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Redwood Group Business Description

Address No. 205, Section 1, South Road, 106, Room 1107, Da\'an District, Taipei, TWN, 729239
Redwood Group Ltd is a contract manufacturer of high-quality interior fittings. It is mainly engaged in the decoration of globally advance boutique brand stores. The Group operates in three principal geographical areas - Singapore, Malaysia, and the USA, other than that the company also operates in Asian, the Middle East, the Americas, and Europe.
69GF Score

Get the complete analysis for ROCO:8426

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

NT$20.15
Price
NT$50.08
GF Value