Yung Chi Paint & Varnish Mfg CoTPE:1726 86 Gross Margin % is 28.35% as of Dec. 2025, which is 11% above its 10-year median of 25.61. GuruFocus rates TPE:1726 with a GF Score™ of 86/100 and a GF Value™ of NT$77.15 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,556 Chemicals companies, Yung Chi Paint & Varnish Mfg Co ranks better than 57.97% on this metric.
Yung Chi Paint & Varnish Mfg Co (TPE:1726) 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
Yung Chi Paint & Varnish Mfg Co had a gross margin of 28.35% 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.
Yung Chi Paint & Varnish Mfg Co Gross Margin % Related Terms
Yung Chi Paint & Varnish Mfg 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.
Yung Chi Paint & Varnish Mfg Co Gross Margin % Chart
TPE:1726 vs LIN, SHW, ECL: Gross Margin % Comparison
For the Specialty Chemicals subindustry, Yung Chi Paint & Varnish 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.
Yung Chi Paint & Varnish Mfg Co Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Yung Chi Paint & Varnish Mfg Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Yung Chi Paint & Varnish 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.
Yung Chi Paint & Varnish Mfg Co (TPE:1726) has a Gross Margin % of 28.35% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Yung Chi Paint & Varnish Mfg Co and its competitors. This is 11% above median its historical median of 25.61. Over the past decade, Yung Chi Paint & Varnish Mfg Co's Gross Margin % has ranged from 22.16 to 29.05. According to the industry distribution chart, Yung Chi Paint & Varnish Mfg Co ranks #654 out of 1556 companies in the Chemicals industry, placing it in the top 42%.
Is Yung Chi Paint & Varnish Mfg Co's Gross Margin % too high?
Yung Chi Paint & Varnish Mfg Co's current Gross Margin % of 28.35% is 11% above median its 10-year median of 25.61. Over the past 10 years, this metric has ranged from a low of 22.16 to a high of 29.05. The Chemicals industry median Gross Margin % is 23.47. Yung Chi Paint & Varnish Mfg Co's value of 28.35% is 20.8% above this industry median. Based on the distribution chart, Yung Chi Paint & Varnish Mfg Co ranks #654 out of 1556 companies in the Chemicals industry, which is above the industry midpoint. Overall, Yung Chi Paint & Varnish Mfg Co has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Yung Chi Paint & Varnish Mfg Co's Gross Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Yung Chi Paint & Varnish Mfg Co ranks #654 out of 1556 companies for Gross Margin %. This puts Yung Chi Paint & Varnish Mfg Co in the upper half of its industry. The industry median Gross Margin % is 23.47. Yung Chi Paint & Varnish Mfg Co's value of 28.35% is 20.8% above this benchmark. Historically, Yung Chi Paint & Varnish Mfg Co's own Gross Margin % has ranged from 22.16 to 29.05 over the past decade. While the company's 10-year median is 25.61 vs. the industry median of 23.47, Yung Chi Paint & Varnish Mfg Co 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 a Chemicals company?
The median Gross Margin % among Chemicals companies is 23.47, based on 1,556 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. Yung Chi Paint & Varnish Mfg Co's current Gross Margin % of 28.35% is 20.8% 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 Yung Chi Paint & Varnish Mfg Co and its competitors. For the Chemicals industry, the median Gross Margin % is 23.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Yung Chi Paint & Varnish Mfg Co's current Gross Margin % is 28.35%, which is 11% above median its own 10-year median of 25.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Yung Chi Paint & Varnish Mfg Co stock overvalued right now?
Based on GuruFocus' analysis, Yung Chi Paint & Varnish Mfg Co (TPE:1726) is currently considered Fairly Valued. The stock's GF Value™ is NT$77.15, compared to a current price of NT$78.80 — trading 2.1% above its estimated fair value. The current Gross Margin % is 28.35%, which is 11% above median its 10-year median of 25.61 and 20.8% above the Chemicals industry median of 23.47. Yung Chi Paint & Varnish Mfg Co's overall GF Score™ is 86/100 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 Yung Chi Paint & Varnish Mfg Co (TPE:1726), the current Gross Margin % is 28.35% 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 Yung Chi Paint & Varnish Mfg Co (TPE:1726) Overvalued in 2026?
Based on GuruFocus' analysis, Yung Chi Paint & Varnish Mfg Co stock appears to be overvalued.
The current stock price of NT$78.80 is trading 2.1% above its estimated GF Value™ of NT$77.15.
GuruFocus considers Yung Chi Paint & Varnish Mfg Co to be Fairly Valued.
Key valuation signals for TPE:1726:
Gross Margin %: 28.35% (11% above median its 10-year median of 25.61)
GF Value™: NT$77.15 vs. price of NT$78.80 (2.1% above fair value)
Industry Position: 20.8% above the Chemicals median (#654 of 1556)
No single metric tells the full story. See the TPE:1726 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Yung Chi Paint & Varnish Mfg Co Business Description
Yung Chi Paint & Varnish Mfg Co Ltd is mainly engaged in the manufacture and sale of paints and coatings and the undertaking of painting projects. The company operates in two segments: the Paint Business Department, which is mainly engaged in the manufacture and sale of various paint products, and the Coating Engineering Department, engaged in the business of painting projects and structural coating or restoration. The company derives the majority of its revenue from the Paint business segment.
86GF Score
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