Chang Type Industrial CoTPE:1541 70 Gross Margin % is 19.55% as of Dec. 2025, which is 12% above its 10-year median of 17.41. GuruFocus rates TPE:1541 with a GF Score™ of 70/100 and a GF Value™ of NT$32.33 (Possible Value Trap). The stock has 2 warning signs investors should review. Among 2,997 Industrial Products companies, Chang Type Industrial Co ranks worse than 72.34% on this metric.
Chang Type Industrial Co (TPE:1541) 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
Chang Type Industrial Co had a gross margin of 19.55% 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.
Chang Type Industrial Co Gross Margin % Related Terms
Chang Type 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.
TPE:1541 vs SNA, RBC, LECO: Gross Margin % Comparison
For the Tools & Accessories subindustry, Chang Type 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.
Chang Type Industrial Co Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Chang Type Industrial Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Chang Type 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.
Chang Type Industrial Co (TPE:1541) has a Gross Margin % of 19.55% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Chang Type Industrial Co and its competitors. This is 12% above median its historical median of 17.41. Over the past decade, Chang Type Industrial Co's Gross Margin % has ranged from 12.59 to 21.68. According to the industry distribution chart, Chang Type Industrial Co ranks #2168 out of 2997 companies in the Industrial Products industry, placing it in the top 72.3%.
Is Chang Type Industrial Co's Gross Margin % too high?
Chang Type Industrial Co's current Gross Margin % of 19.55% is 12% above median its 10-year median of 17.41. Over the past 10 years, this metric has ranged from a low of 12.59 to a high of 21.68. The Industrial Products industry median Gross Margin % is 26.79. Chang Type Industrial Co's value of 19.55% is 27% below this industry median. Based on the distribution chart, Chang Type Industrial Co ranks #2168 out of 2997 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Chang Type Industrial Co has a GF Score™ of 70/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Chang Type Industrial Co's Gross Margin % compare to SNA and RBC?
According to the Industrial Products industry distribution chart, Chang Type Industrial Co ranks #2168 out of 2997 companies for Gross Margin %. This places Chang Type Industrial Co in the lower half of its industry. The industry median Gross Margin % is 26.79. Chang Type Industrial Co's value of 19.55% is 27% below this benchmark. Historically, Chang Type Industrial Co's own Gross Margin % has ranged from 12.59 to 21.68 over the past decade. While the company's 10-year median is 17.41 vs. the industry median of 26.79, Chang Type 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 26.79, based on 2,997 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. Chang Type Industrial Co's current Gross Margin % of 19.55% is 27% 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 Chang Type Industrial Co and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chang Type Industrial Co's current Gross Margin % is 19.55%, which is 12% above median its own 10-year median of 17.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chang Type Industrial Co stock overvalued right now?
Based on GuruFocus' analysis, Chang Type Industrial Co (TPE:1541) is currently considered Possible Value Trap. The stock's GF Value™ is NT$32.33, compared to a current price of NT$21.45 — trading 33.7% below its estimated fair value. The current Gross Margin % is 19.55%, which is 12% above median its 10-year median of 17.41 and 27% below the Industrial Products industry median of 26.79. Chang Type Industrial Co's overall GF Score™ is 70/100 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 Chang Type Industrial Co (TPE:1541), the current Gross Margin % is 19.55% 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 Chang Type Industrial Co (TPE:1541) Overvalued in 2026?
Based on GuruFocus' analysis, Chang Type Industrial Co stock appears to be undervalued.
The current stock price of NT$21.45 is trading 33.7% below its estimated GF Value™ of NT$32.33.
GuruFocus considers Chang Type Industrial Co to be Possible Value Trap.
Key valuation signals for TPE:1541:
Gross Margin %: 19.55% (12% above median its 10-year median of 17.41)
GF Value™: NT$32.33 vs. price of NT$21.45 (33.7% below fair value)
Industry Position: 27% below the Industrial Products median (#2168 of 2997)
No single metric tells the full story. See the TPE:1541 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chang Type Industrial Co Ltd manufacture, process and sell hand tools, electric machines, motors, power tools, automatic control system, computer machinery, electric test instruments, woodworking machines and metal parts. It is also the agent to import and export raw materials for all related products mentioned above and to design various molds and fixtures.
70GF Score
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