TPE:1536's Gross Margin % is ranked worse than 96.49% of 1310
companies
in the Vehicles & Parts industry
Industry Median: 19.835
vs TPE:1536: 2.92
Hota Industrial Mfg Co had a gross margin of -3.41% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Hota Industrial Mfg Co was -30.60% per year.
Hota Industrial Mfg Co (TPE:1536) 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
Hota Industrial Mfg Co had a gross margin of -3.41% 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.
Hota Industrial Mfg Co Gross Margin % Related Terms
Hota Industrial Mfg Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Hota Industrial Mfg Co'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 Auto Parts subindustry, Hota Industrial Mfg Co'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.
Hota Industrial Mfg Co Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Hota Industrial Mfg Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hota Industrial Mfg Co'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.
Hota Industrial Mfg Co (TPE:1536) has a Gross Margin % of -3.41% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Hota Industrial Mfg Co and its competitors. Over the past decade, Hota Industrial Mfg Co's Gross Margin % has ranged from 2.92 to 36.98. According to the industry distribution chart, Hota Industrial Mfg Co ranks #1264 out of 1310 companies in the Vehicles & Parts industry, placing it in the top 96.5%.
Is Hota Industrial Mfg Co's Gross Margin % too high?
Hota Industrial Mfg Co's current Gross Margin % is -3.41%. Over the past 10 years, this metric has ranged from a low of 2.92 to a high of 36.98. Based on the distribution chart, Hota Industrial Mfg Co ranks #1264 out of 1310 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, Hota Industrial Mfg Co has a GF Score™ of 62/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hota Industrial Mfg Co's Gross Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Hota Industrial Mfg Co ranks #1264 out of 1310 companies for Gross Margin %. This places Hota Industrial Mfg Co in the lower half of its industry. The industry median Gross Margin % is 19.84. Historically, Hota Industrial Mfg Co's own Gross Margin % has ranged from 2.92 to 36.98 over the past decade. 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 Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.84, based on 1,310 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 Hota Industrial Mfg Co and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hota Industrial Mfg Co's current Gross Margin % is -3.41%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hota Industrial Mfg Co stock overvalued right now?
Based on GuruFocus' analysis, Hota Industrial Mfg Co (TPE:1536) is currently considered Fairly Valued. The stock's GF Value™ is NT$49.77, compared to a current price of NT$50.90 — trading 2.3% above its estimated fair value. The current Gross Margin % is -3.41%. Hota Industrial Mfg Co's overall GF Score™ is 62/100 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 Hota Industrial Mfg Co (TPE:1536), the current Gross Margin % is -3.41% 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 Hota Industrial Mfg Co (TPE:1536) Overvalued in 2026?
Based on GuruFocus' analysis, Hota Industrial Mfg Co stock appears to be overvalued.
The current stock price of NT$50.90 is trading 2.3% above its estimated GF Value™ of NT$49.77.
GuruFocus considers Hota Industrial Mfg Co to be Fairly Valued.
Key valuation signals for TPE:1536:
Gross Margin %: -3.41%
GF Value™: NT$49.77 vs. price of NT$50.90 (2.3% above fair value)
No single metric tells the full story. See the TPE:1536 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hota Industrial Mfg Co Ltd is engaged in the manufacturing and trading of gear wheels, shafts and various transmission parts like for automobiles, motorbike, agricultural machinery, tooling machinery, etc.
62GF Score
Get the complete analysis for TPE:1536
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TPE:1536 has been successfully added to your 
