Chung-Hsin Electric & Machinery Mfg (TPE:1513) 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
Chung-Hsin Electric & Machinery Mfg had a gross margin of 27.00% 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.
Chung-Hsin Electric & Machinery Mfg Gross Margin % Related Terms
Chung-Hsin Electric & Machinery Mfg 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.
Chung-Hsin Electric & Machinery Mfg Gross Margin % Chart
TPE:1513 vs GEV, ETN, PH: Gross Margin % Comparison
For the Specialty Industrial Machinery subindustry, Chung-Hsin Electric & Machinery Mfg'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.
Chung-Hsin Electric & Machinery Mfg Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Chung-Hsin Electric & Machinery Mfg's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Chung-Hsin Electric & Machinery Mfg'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.
Chung-Hsin Electric & Machinery Mfg (TPE:1513) has a Gross Margin % of 27.00% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Chung-Hsin Electric & Machinery Mfg and its competitors. This is 19% above median its historical median of 22.60. Over the past decade, Chung-Hsin Electric & Machinery Mfg's Gross Margin % has ranged from 14.76 to 28.99. According to the industry distribution chart, Chung-Hsin Electric & Machinery Mfg ranks #1578 out of 2996 companies in the Industrial Products industry, placing it in the top 52.7%.
Is Chung-Hsin Electric & Machinery Mfg's Gross Margin % too high?
Chung-Hsin Electric & Machinery Mfg's current Gross Margin % of 27.00% is 19% above median its 10-year median of 22.60. Over the past 10 years, this metric has ranged from a low of 14.76 to a high of 28.99. The Industrial Products industry median Gross Margin % is 26.80. Chung-Hsin Electric & Machinery Mfg's value of 27.00% is 0.7% above this industry median. Based on the distribution chart, Chung-Hsin Electric & Machinery Mfg ranks #1578 out of 2996 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Chung-Hsin Electric & Machinery Mfg has a GF Score™ of 93/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Chung-Hsin Electric & Machinery Mfg's Gross Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Chung-Hsin Electric & Machinery Mfg ranks #1578 out of 2996 companies for Gross Margin %. This places Chung-Hsin Electric & Machinery Mfg in the lower half of its industry. The industry median Gross Margin % is 26.80. Chung-Hsin Electric & Machinery Mfg's value of 27.00% is 0.7% above this benchmark. Historically, Chung-Hsin Electric & Machinery Mfg's own Gross Margin % has ranged from 14.76 to 28.99 over the past decade. While the company's 10-year median is 22.60 vs. the industry median of 26.80, Chung-Hsin Electric & Machinery Mfg 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.80, based on 2,996 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. Chung-Hsin Electric & Machinery Mfg's current Gross Margin % of 27.00% is 0.7% 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 Chung-Hsin Electric & Machinery Mfg and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chung-Hsin Electric & Machinery Mfg's current Gross Margin % is 27.00%, which is 19% above median its own 10-year median of 22.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chung-Hsin Electric & Machinery Mfg stock overvalued right now?
Based on GuruFocus' analysis, Chung-Hsin Electric & Machinery Mfg (TPE:1513) is currently considered Fairly Valued. The stock's GF Value™ is NT$169.36, compared to a current price of NT$176.50 — trading 4.2% above its estimated fair value. The current Gross Margin % is 27.00%, which is 19% above median its 10-year median of 22.60 and 0.7% above the Industrial Products industry median of 26.80. Chung-Hsin Electric & Machinery Mfg's overall GF Score™ is 93/100 with 2 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 Chung-Hsin Electric & Machinery Mfg (TPE:1513), the current Gross Margin % is 27.00% 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 Chung-Hsin Electric & Machinery Mfg (TPE:1513) Overvalued in 2026?
Based on GuruFocus' analysis, Chung-Hsin Electric & Machinery Mfg stock appears to be overvalued.
The current stock price of NT$176.50 is trading 4.2% above its estimated GF Value™ of NT$169.36.
GuruFocus considers Chung-Hsin Electric & Machinery Mfg to be Fairly Valued.
Key valuation signals for TPE:1513:
Gross Margin %: 27.00% (19% above median its 10-year median of 22.60)
GF Value™: NT$169.36 vs. price of NT$176.50 (4.2% above fair value)
Industry Position: 0.7% above the Industrial Products median (#1578 of 2996)
No single metric tells the full story. See the TPE:1513 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chung-Hsin Electric & Machinery Mfg Business Description
Chung-Hsin Electric & Machinery Mfg Corp is a manufacturer of power generation machinery and equipment and its related parts, air-conditioners, dehumidifiers, and meters. The company's products include chillers, generator sets, high voltage circuit breakers, smart grid electric power automation equipment, customized fuel cell systems, methanol reformers, handheld document terminals, industrial computers, and parking facilities, among others. Its operating segments include Electricity Power; Service and Engineering and others. The company generates maximum revenue from the Electricity Power segment.
93GF Score
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