Lian Hwa FoodsTPE:1231 -0.34%89 Gross Margin % is 22.15% as of Dec. 2025, which is 4% above its 10-year median of 21.40. GuruFocus rates TPE:1231 with a GF Score™ of 89/100 and a GF Value™ of NT$100.81 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 1,899 Consumer Packaged Goods companies, Lian Hwa Foods ranks worse than 63.24% on this metric.
Lian Hwa Foods Corp gross margin has been in long-term decline. The average rate of decline per year is -1.9%.
The historical rank and industry rank for Lian Hwa Foods's Gross Margin % or its related term are showing as below:
TPE:1231'
s Gross Margin % Range Over the Past 10 Years
Min: 20.44 Med: 21.4 Max: 23.22
Current: 20.44
During the past 13 years, the highestGross Margin % of Lian Hwa Foods was 23.22%. The lowest was 20.44%. And the median was 21.40%.
TPE:1231's Gross Margin % is ranked worse than 63.24% of 1899
companies
in the Consumer Packaged Goods industry
Industry Median: 26.37
vs TPE:1231: 20.44
Lian Hwa Foods had a gross margin of 22.15% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Lian Hwa Foods was -1.90% per year.
Lian Hwa Foods (TPE:1231) 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
Lian Hwa Foods had a gross margin of 22.15% 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.
Lian Hwa Foods Gross Margin % Related Terms
Lian Hwa Foods Gross Margin % Historical Data
* Premium members only.
The historical data trend for Lian Hwa Foods'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.
For the Packaged Foods subindustry, Lian Hwa Foods'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.
Lian Hwa Foods Gross Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Lian Hwa Foods's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Lian Hwa Foods'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.
Lian Hwa Foods (TPE:1231) has a Gross Margin % of 22.15% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Lian Hwa Foods and its competitors. This is near median its historical median of 21.40. Over the past decade, Lian Hwa Foods' Gross Margin % has ranged from 20.44 to 23.22. According to the industry distribution chart, Lian Hwa Foods ranks #1201 out of 1899 companies in the Consumer Packaged Goods industry, placing it in the top 63.2%.
Is Lian Hwa Foods' Gross Margin % too high?
Lian Hwa Foods' current Gross Margin % of 22.15% is near median its 10-year median of 21.40. Over the past 10 years, this metric has ranged from a low of 20.44 to a high of 23.22. The Consumer Packaged Goods industry median Gross Margin % is 26.37. Lian Hwa Foods' value of 22.15% is 16% below this industry median. Based on the distribution chart, Lian Hwa Foods ranks #1201 out of 1899 companies in the Consumer Packaged Goods industry, which is below the industry midpoint. Overall, Lian Hwa Foods has a GF Score™ of 89/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Lian Hwa Foods' Gross Margin % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Lian Hwa Foods ranks #1201 out of 1899 companies for Gross Margin %. This places Lian Hwa Foods in the lower half of its industry. The industry median Gross Margin % is 26.37. Lian Hwa Foods' value of 22.15% is 16% below this benchmark. Historically, Lian Hwa Foods' own Gross Margin % has ranged from 20.44 to 23.22 over the past decade. While the company's 10-year median is 21.40 vs. the industry median of 26.37, Lian Hwa Foods 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 Consumer Packaged Goods company?
The median Gross Margin % among Consumer Packaged Goods companies is 26.37, based on 1,899 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. Lian Hwa Foods's current Gross Margin % of 22.15% is 16% 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 Lian Hwa Foods and its competitors. For the Consumer Packaged Goods industry, the median Gross Margin % is 26.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lian Hwa Foods's current Gross Margin % is 22.15%, which is near median its own 10-year median of 21.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lian Hwa Foods stock overvalued right now?
Based on GuruFocus' analysis, Lian Hwa Foods (TPE:1231) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$100.81, compared to a current price of NT$87.90 — trading 12.8% below its estimated fair value. The current Gross Margin % is 22.15%, which is near median its 10-year median of 21.40 and 16% below the Consumer Packaged Goods industry median of 26.37. Lian Hwa Foods' overall GF Score™ is 89/100 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 Lian Hwa Foods (TPE:1231), the current Gross Margin % is 22.15% 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 Lian Hwa Foods (TPE:1231) Overvalued in 2026?
Based on GuruFocus' analysis, Lian Hwa Foods stock appears to be undervalued.
The current stock price of NT$87.90 is trading 12.8% below its estimated GF Value™ of NT$100.81.
GuruFocus considers Lian Hwa Foods to be Modestly Undervalued.
Key valuation signals for TPE:1231:
Gross Margin %: 22.15% (near median its 10-year median of 21.40)
GF Value™: NT$100.81 vs. price of NT$87.90 (12.8% below fair value)
Industry Position: 16% below the Consumer Packaged Goods median (#1201 of 1899)
No single metric tells the full story. See the TPE:1231 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lian Hwa Foods Corp is engaged in the manufacturing, processing, trading, and wholesale and retail of seaweed, squid, pasta, rice bran, beans, nuts, melon seeds, jams, beverages, sugar, candy, biscuits, peanut butter and other products or processed products, and various sea and land products, frozen processed foods and canned foods. It operates in two divisions: Snack Food Division and RTE (Ready-to-Eat) Foods Division. The RTE (Ready-to-Eat) Foods Division derives majority of the revenue from Taiwan. Its brands include KOLOKO Crispy Pea Snacks, VIVA Nuts, CADINA Snacks, Moto-Moto-Yama Seaweed, Chef Hoka Instant Pasta, and Lucky Star Snacks.
89GF Score
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