Chung Hwa Chemical Industrial Works (TPE:1727) 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 Hwa Chemical Industrial Works had a gross margin of 11.85% 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.
Chung Hwa Chemical Industrial Works Gross Margin % Related Terms
Chung Hwa Chemical Industrial Works 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 Hwa Chemical Industrial Works Gross Margin % Chart
For the Chemicals subindustry, Chung Hwa Chemical Industrial Works'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 Hwa Chemical Industrial Works Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Chung Hwa Chemical Industrial Works's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Chung Hwa Chemical Industrial Works'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 Hwa Chemical Industrial Works (TPE:1727) has a Gross Margin % of 11.85% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Chung Hwa Chemical Industrial Works and its competitors. This is near median its historical median of 12.42. Over the past decade, Chung Hwa Chemical Industrial Works' Gross Margin % has ranged from 10.92 to 18.51. According to the industry distribution chart, Chung Hwa Chemical Industrial Works ranks #1269 out of 1560 companies in the Chemicals industry, placing it in the top 81.3%.
Is Chung Hwa Chemical Industrial Works' Gross Margin % too high?
Chung Hwa Chemical Industrial Works' current Gross Margin % of 11.85% is near median its 10-year median of 12.42. Over the past 10 years, this metric has ranged from a low of 10.92 to a high of 18.51. The Chemicals industry median Gross Margin % is 23.36. Chung Hwa Chemical Industrial Works' value of 11.85% is 49.3% below this industry median. Based on the distribution chart, Chung Hwa Chemical Industrial Works ranks #1269 out of 1560 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Chung Hwa Chemical Industrial Works has a GF Score™ of 47/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Chung Hwa Chemical Industrial Works' Gross Margin % compare to DOW?
According to the Chemicals industry distribution chart, Chung Hwa Chemical Industrial Works ranks #1269 out of 1560 companies for Gross Margin %. This places Chung Hwa Chemical Industrial Works in the lower half of its industry. The industry median Gross Margin % is 23.36. Chung Hwa Chemical Industrial Works' value of 11.85% is 49.3% below this benchmark. Historically, Chung Hwa Chemical Industrial Works' own Gross Margin % has ranged from 10.92 to 18.51 over the past decade. While the company's 10-year median is 12.42 vs. the industry median of 23.36, Chung Hwa Chemical Industrial Works 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 a Chemicals company?
The median Gross Margin % among Chemicals companies is 23.36, based on 1,560 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 Hwa Chemical Industrial Works's current Gross Margin % of 11.85% is 49.3% 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 Chung Hwa Chemical Industrial Works and its competitors. For the Chemicals industry, the median Gross Margin % is 23.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chung Hwa Chemical Industrial Works's current Gross Margin % is 11.85%, which is near median its own 10-year median of 12.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chung Hwa Chemical Industrial Works stock overvalued right now?
Based on GuruFocus' analysis, Chung Hwa Chemical Industrial Works (TPE:1727) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$33.57, compared to a current price of NT$92.30 — trading 174.9% above its estimated fair value. The current Gross Margin % is 11.85%, which is near median its 10-year median of 12.42 and 49.3% below the Chemicals industry median of 23.36. Chung Hwa Chemical Industrial Works' overall GF Score™ is 47/100 with 9 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 Hwa Chemical Industrial Works (TPE:1727), the current Gross Margin % is 11.85% 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 Hwa Chemical Industrial Works (TPE:1727) Overvalued in 2026?
Based on GuruFocus' analysis, Chung Hwa Chemical Industrial Works stock appears to be overvalued.
The current stock price of NT$92.30 is trading 174.9% above its estimated GF Value™ of NT$33.57.
GuruFocus considers Chung Hwa Chemical Industrial Works to be Significantly Overvalued.
Key valuation signals for TPE:1727:
Gross Margin %: 11.85% (near median its 10-year median of 12.42)
GF Value™: NT$33.57 vs. price of NT$92.30 (174.9% above fair value)
Industry Position: 49.3% below the Chemicals median (#1269 of 1560)
No single metric tells the full story. See the TPE:1727 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chung Hwa Chemical Industrial Works Business Description
Chung Hwa Chemical Industrial Works Ltd operates as a chemical manufacturer. The company is engaged in the manufacturing and retail of sulfuric acid and other chemical industrial raw materials, and trading of finished products, and design of related chemical engineering, industrial investment, chemical raw materials, import and export trade, and agency distribution. The company single segment of Chemicals are further bifurcated as Basic chemicals, Specialty chemicals, and Electronic chemicals, out of which maximum revenue is generated from Basic chemicals.
47GF Score
Get the complete analysis for TPE:1727
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:1727 has been successfully added to your 
