Grand Pacific Petrochemical (TPE:1312A) 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
Grand Pacific Petrochemical had a gross margin of -5.49% 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.
Grand Pacific Petrochemical Gross Margin % Related Terms
Grand Pacific Petrochemical 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 Chemicals subindustry, Grand Pacific Petrochemical'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.
Grand Pacific Petrochemical Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Grand Pacific Petrochemical's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Grand Pacific Petrochemical'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.
Grand Pacific Petrochemical (TPE:1312A) has a Gross Margin % of -5.49% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Grand Pacific Petrochemical and its competitors. According to the industry distribution chart, Grand Pacific Petrochemical ranks #1519 out of 1556 companies in the Chemicals industry, placing it in the top 97.6%.
Is Grand Pacific Petrochemical's Gross Margin % too high?
Grand Pacific Petrochemical's current Gross Margin % is -5.49%. Based on the distribution chart, Grand Pacific Petrochemical ranks #1519 out of 1556 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Grand Pacific Petrochemical has a GF Score™ of 61/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Grand Pacific Petrochemical's Gross Margin % compare to DOW?
According to the Chemicals industry distribution chart, Grand Pacific Petrochemical ranks #1519 out of 1556 companies for Gross Margin %. This places Grand Pacific Petrochemical in the lower half of its industry. The industry median Gross Margin % is 23.47. 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 23.47, based on 1,556 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. 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 Grand Pacific Petrochemical and its competitors. For the Chemicals industry, the median Gross Margin % is 23.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Grand Pacific Petrochemical's current Gross Margin % is -5.49%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Grand Pacific Petrochemical stock overvalued right now?
Based on GuruFocus' analysis, Grand Pacific Petrochemical (TPE:1312A) is currently considered Possible Value Trap. The stock's GF Value™ is NT$32.07, compared to a current price of NT$21.85 — trading 31.9% below its estimated fair value. The current Gross Margin % is -5.49%. Grand Pacific Petrochemical's overall GF Score™ is 61/100 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 Grand Pacific Petrochemical (TPE:1312A), the current Gross Margin % is -5.49% 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 Grand Pacific Petrochemical (TPE:1312A) Overvalued in 2026?
Based on GuruFocus' analysis, Grand Pacific Petrochemical stock appears to be undervalued.
The current stock price of NT$21.85 is trading 31.9% below its estimated GF Value™ of NT$32.07.
GuruFocus considers Grand Pacific Petrochemical to be Possible Value Trap.
Key valuation signals for TPE:1312A:
Gross Margin %: -5.49%
GF Value™: NT$32.07 vs. price of NT$21.85 (31.9% below fair value)
No single metric tells the full story. See the TPE:1312A stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Grand Pacific Petrochemical Corp is engaged in manufacturing of Petrochemical, Synthetic Resin & Plastic, Other Chemical Products, and Steam Electricity Paragenesis, Heat Energy Supplying and international trade. Its segments are Petrochemistry Department responsible for the manufacture, processing, and trading of petrochemical raw materials and related products; Digital Media Department responsible for TV program production, cable TV program import/export agency distribution, various advertising agencies and their planning and production business, as well as ecommerce, to create new business value through content integration; Packaging Materials Department responsible for the manufacturing, processing, and trading of various packaging materials, such as trademark paper and release paper.
61GF Score
Get the complete analysis for TPE:1312A
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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