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
Lien Hwa Industrial Holding had a gross margin of 21.12% 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.
Lien Hwa Industrial Holding Gross Margin % Related Terms
Lien Hwa Industrial Holding 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.
For the Conglomerates subindustry, Lien Hwa Industrial Holding'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.
Lien Hwa Industrial Holding Gross Margin % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Lien Hwa Industrial Holding's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Lien Hwa Industrial Holding'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.
Lien Hwa Industrial Holding (TPE:1229) has a Gross Margin % of 21.12% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Lien Hwa Industrial Holding and its competitors. This is near median its historical median of 21.59. Over the past decade, Lien Hwa Industrial Holding's Gross Margin % has ranged from 16.32 to 25.09. According to the industry distribution chart, Lien Hwa Industrial Holding ranks #270 out of 513 companies in the Conglomerates industry, placing it in the top 52.6%.
Is Lien Hwa Industrial Holding's Gross Margin % too high?
Lien Hwa Industrial Holding's current Gross Margin % of 21.12% is near median its 10-year median of 21.59. Over the past 10 years, this metric has ranged from a low of 16.32 to a high of 25.09. The Conglomerates industry median Gross Margin % is 25.98. Lien Hwa Industrial Holding's value of 21.12% is 18.7% below this industry median. Based on the distribution chart, Lien Hwa Industrial Holding ranks #270 out of 513 companies in the Conglomerates industry, which is below the industry midpoint. Overall, Lien Hwa Industrial Holding has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Lien Hwa Industrial Holding's Gross Margin % compare to HON and MMM?
According to the Conglomerates industry distribution chart, Lien Hwa Industrial Holding ranks #270 out of 513 companies for Gross Margin %. This places Lien Hwa Industrial Holding in the lower half of its industry. The industry median Gross Margin % is 25.98. Lien Hwa Industrial Holding's value of 21.12% is 18.7% below this benchmark. Historically, Lien Hwa Industrial Holding's own Gross Margin % has ranged from 16.32 to 25.09 over the past decade. While the company's 10-year median is 21.59 vs. the industry median of 25.98, Lien Hwa Industrial Holding 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 a Conglomerates company?
The median Gross Margin % among Conglomerates companies is 25.98, based on 513 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. Lien Hwa Industrial Holding's current Gross Margin % of 21.12% is 18.7% 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 Lien Hwa Industrial Holding and its competitors. For the Conglomerates industry, the median Gross Margin % is 25.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lien Hwa Industrial Holding's current Gross Margin % is 21.12%, which is near median its own 10-year median of 21.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lien Hwa Industrial Holding stock overvalued right now?
Based on GuruFocus' analysis, Lien Hwa Industrial Holding (TPE:1229) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$55.75, compared to a current price of NT$40.10 — trading 28.1% below its estimated fair value. The current Gross Margin % is 21.12%, which is near median its 10-year median of 21.59 and 18.7% below the Conglomerates industry median of 25.98. Lien Hwa Industrial Holding's overall GF Score™ is 87/100 with 3 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 Lien Hwa Industrial Holding (TPE:1229), the current Gross Margin % is 21.12% 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 Lien Hwa Industrial Holding (TPE:1229) Overvalued in 2026?
Based on GuruFocus' analysis, Lien Hwa Industrial Holding stock appears to be undervalued.
The current stock price of NT$40.10 is trading 28.1% below its estimated GF Value™ of NT$55.75.
GuruFocus considers Lien Hwa Industrial Holding to be Modestly Undervalued.
Key valuation signals for TPE:1229:
Gross Margin %: 21.12% (near median its 10-year median of 21.59)
GF Value™: NT$55.75 vs. price of NT$40.10 (28.1% below fair value)
Industry Position: 18.7% below the Conglomerates median (#270 of 513)
No single metric tells the full story. See the TPE:1229 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lien Hwa Industrial Holding Corp is engaged in flour production, real estate rental, integrated system service, automatic system, and other electronic businesses. The company has four reportable segments. The rental business provides real property rental and development services. The Flour business manufactures and sells all kinds of Flour and processed foods. The system integration service business provides the system integration service, automatic system, applied software design and sale of industrial computer. The administrative resource center is responsible for the management of domestic/foreign investment business.
87GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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