TongHwaTPE:1418 41 Gross Margin % is 208.69% as of Dec. 2025. GuruFocus rates TPE:1418 with a GF Score™ of 41/100 and a GF Value™ of NT$10.78 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 1,020 Manufacturing - Apparel & Accessories companies, TongHwa ranks better than 97.55% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. TongHwa's Gross Profit for the
three
months ended in Dec. 2025 was NT$3.60 Mil. TongHwa's Revenue for the
three
months ended in Dec. 2025 was NT$1.73 Mil. Therefore, TongHwa's Gross Margin % for the quarter that ended in Dec. 2025 was 208.69%.
The historical rank and industry rank for TongHwa's Gross Margin % or its related term are showing as below:
TPE:1418'
s Gross Margin % Range Over the Past 10 Years
Min: -300.35 Med: -25.85 Max: 76.99
Current: 76.99
During the past 13 years, the highestGross Margin % of TongHwa was 76.99%. The lowest was -300.35%. And the median was -25.85%.
TPE:1418's Gross Margin % is ranked better than 97.55% of 1020
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 28.51
vs TPE:1418: 76.99
TongHwa had a gross margin of 208.69% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for TongHwa was 0.00% per year.
TongHwa (TPE:1418) 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
TongHwa had a gross margin of 208.69% 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.
TongHwa Gross Margin % Related Terms
TongHwa Gross Margin % Historical Data
* Premium members only.
The historical data trend for TongHwa'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 Textile Manufacturing subindustry, TongHwa'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.
TongHwa Gross Margin % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, TongHwa's Gross Margin % distribution charts can be found below:
* The bar in red indicates where TongHwa'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.
TongHwa (TPE:1418) has a Gross Margin % of 208.69% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on TongHwa and its competitors. According to the industry distribution chart, TongHwa ranks #25 out of 1020 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 2.5%.
Is TongHwa's Gross Margin % too high?
TongHwa's current Gross Margin % is 208.69%. The Manufacturing - Apparel & Accessories industry median Gross Margin % is 28.51. TongHwa's value of 208.69% is 632% above this industry median. Based on the distribution chart, TongHwa ranks #25 out of 1020 companies in the Manufacturing - Apparel & Accessories industry, which is in the top quartile — a strong position relative to peers. Overall, TongHwa has a GF Score™ of 41/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does TongHwa's Gross Margin % compare to competitors?
According to the Manufacturing - Apparel & Accessories industry distribution chart, TongHwa ranks #25 out of 1020 companies for Gross Margin %. This places TongHwa in the top 3% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 28.51. TongHwa's value of 208.69% is 632% above this benchmark. 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 Manufacturing - Apparel & Accessories company?
The median Gross Margin % among Manufacturing - Apparel & Accessories companies is 28.51, based on 1,020 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. TongHwa's current Gross Margin % of 208.69% is 632% 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 TongHwa and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Gross Margin % is 28.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TongHwa's current Gross Margin % is 208.69%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TongHwa stock overvalued right now?
Based on GuruFocus' analysis, TongHwa (TPE:1418) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$10.78, compared to a current price of NT$19.20 — trading 78.1% above its estimated fair value. The current Gross Margin % is 208.69% and 632% above the Manufacturing - Apparel & Accessories industry median of 28.51. TongHwa's overall GF Score™ is 41/100 with 10 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 TongHwa (TPE:1418), the current Gross Margin % is 208.69% 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 TongHwa (TPE:1418) Overvalued in 2026?
Based on GuruFocus' analysis, TongHwa stock appears to be overvalued.
The current stock price of NT$19.20 is trading 78.1% above its estimated GF Value™ of NT$10.78.
GuruFocus considers TongHwa to be Significantly Overvalued.
Key valuation signals for TPE:1418:
Gross Margin %: 208.69%
GF Value™: NT$10.78 vs. price of NT$19.20 (78.1% above fair value)
Industry Position: 632% above the Manufacturing - Apparel & Accessories median (#25 of 1020)
No single metric tells the full story. See the TPE:1418 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
TongHwa Corp is a Taiwan-based company. The company manufactures and distributes acrylic fibers. It offers high shrinkage, fine denier, flat type, super soft, and anti-pilling fibers that are used in apparel comprising sweaters, women's wear, and children's wear. Its products include sweaters, flannel, blankets, carpets, sofa fabrics, socks, toys, and interior accessories. The reportable segments of the Group include the purchase and sale of Acrylic Staple and Tow, as well as residential and building development, leasing, and sales.
41GF Score
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