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Kung Long Batteries Industrial Co (TPE:1537) 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
Kung Long Batteries Industrial Co had a gross margin of 19.62% for the quarter that ended in Jun. 2026 => 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.
Kung Long Batteries Industrial Co Gross Margin % Related Terms
Kung Long Batteries Industrial Co 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.
Kung Long Batteries Industrial Co Gross Margin % Chart
For the Electrical Equipment & Parts subindustry, Kung Long Batteries Industrial 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.
Kung Long Batteries Industrial Co Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Kung Long Batteries Industrial Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Kung Long Batteries Industrial 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.
Kung Long Batteries Industrial Co (TPE:1537) has a Gross Margin % of 19.62% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Kung Long Batteries Industrial Co and its competitors. This is 10% below median its historical median of 21.78. Over the past decade, Kung Long Batteries Industrial Co's Gross Margin % has ranged from 19.34 to 24.65. According to the industry distribution chart, Kung Long Batteries Industrial Co ranks #2102 out of 3005 companies in the Industrial Products industry, placing it in the top 70%.
Is Kung Long Batteries Industrial Co's Gross Margin % too high?
Kung Long Batteries Industrial Co's current Gross Margin % of 19.62% is 10% below median its 10-year median of 21.78. Over the past 10 years, this metric has ranged from a low of 19.34 to a high of 24.65. The Industrial Products industry median Gross Margin % is 26.98. Kung Long Batteries Industrial Co's value of 19.62% is 27.3% below this industry median. Based on the distribution chart, Kung Long Batteries Industrial Co ranks #2102 out of 3005 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Kung Long Batteries Industrial Co has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Kung Long Batteries Industrial Co's Gross Margin % compare to VRT and BE?
According to the Industrial Products industry distribution chart, Kung Long Batteries Industrial Co ranks #2102 out of 3005 companies for Gross Margin %. This places Kung Long Batteries Industrial Co in the lower half of its industry. The industry median Gross Margin % is 26.98. Kung Long Batteries Industrial Co's value of 19.62% is 27.3% below this benchmark. Historically, Kung Long Batteries Industrial Co's own Gross Margin % has ranged from 19.34 to 24.65 over the past decade. While the company's 10-year median is 21.78 vs. the industry median of 26.98, Kung Long Batteries Industrial Co has consistently been below 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 26.98, based on 3,005 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. Kung Long Batteries Industrial Co's current Gross Margin % of 19.62% is 27.3% below 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 Kung Long Batteries Industrial Co and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kung Long Batteries Industrial Co's current Gross Margin % is 19.62%, which is 10% below median its own 10-year median of 21.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kung Long Batteries Industrial Co stock overvalued right now?
Based on GuruFocus' analysis, Kung Long Batteries Industrial Co (TPE:1537) is currently considered Fairly Valued. The stock's GF Value™ is NT$128.17, compared to a current price of NT$120.00 — trading 6.4% below its estimated fair value. The current Gross Margin % is 19.62%, which is 10% below median its 10-year median of 21.78 and 27.3% below the Industrial Products industry median of 26.98. Kung Long Batteries Industrial Co's overall GF Score™ is 78/100 with 4 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 Kung Long Batteries Industrial Co (TPE:1537), the current Gross Margin % is 19.62% as of Jun. 2026. 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 Kung Long Batteries Industrial Co (TPE:1537) Overvalued in 2026?
Based on GuruFocus' analysis, Kung Long Batteries Industrial Co stock appears to be undervalued.
The current stock price of NT$120.00 is trading 6.4% below its estimated GF Value™ of NT$128.17.
GuruFocus considers Kung Long Batteries Industrial Co to be Fairly Valued.
Key valuation signals for TPE:1537:
Gross Margin %: 19.62% (10% below median its 10-year median of 21.78)
GF Value™: NT$128.17 vs. price of NT$120.00 (6.4% below fair value)
Industry Position: 27.3% below the Industrial Products median (#2102 of 3005)
No single metric tells the full story. See the TPE:1537 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kung Long Batteries Industrial Co Ltd is a Taiwan-based company. The company is predominantly engaged in the manufacture and sale of lead-acid batteries. The company has production facilities in Taiwan and Vietnam. The products are offered for a wide range of applications: multipurpose, cycling high-power, electric car, deep-cycle, renewable energy, and solar energy. Its reportable segments are Vietnam, which generates maximum revenue, and Taiwan.
78GF Score
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