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Kwong Fong IndustriesTPE:1416 +1.36%65 Gross Margin % is 43.12% as of Dec. 2025, which is 42% above its 10-year median of 30.38. GuruFocus rates TPE:1416 with a GF Score™ of 65/100 and a GF Value™ of NT$15.42 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 2,683 Software companies, Kwong Fong Industries ranks worse than 55.01% on this metric.
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
Kwong Fong Industries had a gross margin of 43.12% for the quarter that ended in Dec. 2025 => Durable 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.
Kwong Fong Industries Gross Margin % Related Terms
Kwong Fong Industries Gross Margin % Historical Data
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The historical data trend for Kwong Fong Industries'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.
TPE:1416 vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, Kwong Fong Industries'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.
Kwong Fong Industries Gross Margin % vs Software Industry
For the Software industry and Technology sector, Kwong Fong Industries's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Kwong Fong Industries'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.
Kwong Fong Industries (TPE:1416) has a Gross Margin % of 43.12% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Kwong Fong Industries and its competitors. This is 42% above median its historical median of 30.38. According to the industry distribution chart, Kwong Fong Industries ranks #1476 out of 2683 companies in the Software industry, placing it in the top 55%.
Is Kwong Fong Industries' Gross Margin % too high?
Kwong Fong Industries' current Gross Margin % of 43.12% is 42% above median its 10-year median of 30.38. The Software industry median Gross Margin % is 40.47. Kwong Fong Industries' value of 43.12% is 6.5% above this industry median. Based on the distribution chart, Kwong Fong Industries ranks #1476 out of 2683 companies in the Software industry, which is below the industry midpoint. Overall, Kwong Fong Industries has a GF Score™ of 65/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Kwong Fong Industries' Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Kwong Fong Industries ranks #1476 out of 2683 companies for Gross Margin %. This places Kwong Fong Industries in the lower half of its industry. The industry median Gross Margin % is 40.47. Kwong Fong Industries' value of 43.12% is 6.5% above this benchmark. While the company's 10-year median is 30.38 vs. the industry median of 40.47, Kwong Fong Industries 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 Software company?
The median Gross Margin % among Software companies is 40.47, based on 2,683 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. Kwong Fong Industries's current Gross Margin % of 43.12% is 6.5% 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 Kwong Fong Industries and its competitors. For the Software industry, the median Gross Margin % is 40.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kwong Fong Industries's current Gross Margin % is 43.12%, which is 42% above median its own 10-year median of 30.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kwong Fong Industries stock overvalued right now?
Based on GuruFocus' analysis, Kwong Fong Industries (TPE:1416) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$15.42, compared to a current price of NT$11.20 — trading 27.4% below its estimated fair value. The current Gross Margin % is 43.12%, which is 42% above median its 10-year median of 30.38 and 6.5% above the Software industry median of 40.47. Kwong Fong Industries' overall GF Score™ is 65/100 with 6 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 Kwong Fong Industries (TPE:1416), the current Gross Margin % is 43.12% 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 Kwong Fong Industries (TPE:1416) Overvalued in 2026?
Based on GuruFocus' analysis, Kwong Fong Industries stock appears to be undervalued.
The current stock price of NT$11.20 is trading 27.4% below its estimated GF Value™ of NT$15.42.
GuruFocus considers Kwong Fong Industries to be Modestly Undervalued.
Key valuation signals for TPE:1416:
Gross Margin %: 43.12% (42% above median its 10-year median of 30.38)
GF Value™: NT$15.42 vs. price of NT$11.20 (27.4% below fair value)
Industry Position: 6.5% above the Software median (#1476 of 2683)
No single metric tells the full story. See the TPE:1416 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kwong Fong Industries Corp main business items include housing and building development and rental, real estate business, mall management, information software services, and electronic information supply services. The company's segment includes the Kwong Fong Department, the Pao Fong Asset Management Department, the Kwong Fong Holdings Department, and the Digital Technology Department. The company generates the majority of its revenue from the Digital Technology Department, which is engaged in Information Software Services. The company generates all of its revenue from Taiwan. The company's revenue is derived from information services, software sales, and real estate sales.
65GF Score
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