Evermore Chemical Industry Co (TPE:1735) 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
Evermore Chemical Industry Co had a gross margin of 19.87% 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.
Evermore Chemical Industry Co Gross Margin % Related Terms
Evermore Chemical Industry 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.
Evermore Chemical Industry Co Gross Margin % Chart
For the Chemicals subindustry, Evermore Chemical Industry 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.
Evermore Chemical Industry Co Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Evermore Chemical Industry Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Evermore Chemical Industry 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.
Evermore Chemical Industry Co (TPE:1735) has a Gross Margin % of 19.87% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Evermore Chemical Industry Co and its competitors. This is 11% above median its historical median of 17.94. Over the past decade, Evermore Chemical Industry Co's Gross Margin % has ranged from 12.04 to 20.42. According to the industry distribution chart, Evermore Chemical Industry Co ranks #993 out of 1555 companies in the Chemicals industry, placing it in the top 63.9%.
Is Evermore Chemical Industry Co's Gross Margin % too high?
Evermore Chemical Industry Co's current Gross Margin % of 19.87% is 11% above median its 10-year median of 17.94. Over the past 10 years, this metric has ranged from a low of 12.04 to a high of 20.42. The Chemicals industry median Gross Margin % is 23.44. Evermore Chemical Industry Co's value of 19.87% is 15.2% below this industry median. Based on the distribution chart, Evermore Chemical Industry Co ranks #993 out of 1555 companies in the Chemicals industry, which is below the industry midpoint. Overall, Evermore Chemical Industry Co has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Evermore Chemical Industry Co's Gross Margin % compare to DOW?
According to the Chemicals industry distribution chart, Evermore Chemical Industry Co ranks #993 out of 1555 companies for Gross Margin %. This places Evermore Chemical Industry Co in the lower half of its industry. The industry median Gross Margin % is 23.44. Evermore Chemical Industry Co's value of 19.87% is 15.2% below this benchmark. Historically, Evermore Chemical Industry Co's own Gross Margin % has ranged from 12.04 to 20.42 over the past decade. While the company's 10-year median is 17.94 vs. the industry median of 23.44, Evermore Chemical Industry 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 a Chemicals company?
The median Gross Margin % among Chemicals companies is 23.44, based on 1,555 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. Evermore Chemical Industry Co's current Gross Margin % of 19.87% is 15.2% 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 Evermore Chemical Industry Co and its competitors. For the Chemicals industry, the median Gross Margin % is 23.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Evermore Chemical Industry Co's current Gross Margin % is 19.87%, which is 11% above median its own 10-year median of 17.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Evermore Chemical Industry Co stock overvalued right now?
Based on GuruFocus' analysis, Evermore Chemical Industry Co (TPE:1735) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$15.01, compared to a current price of NT$22.45 — trading 49.6% above its estimated fair value. The current Gross Margin % is 19.87%, which is 11% above median its 10-year median of 17.94 and 15.2% below the Chemicals industry median of 23.44. Evermore Chemical Industry Co's overall GF Score™ is 71/100 with 6 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 Evermore Chemical Industry Co (TPE:1735), the current Gross Margin % is 19.87% 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 Evermore Chemical Industry Co (TPE:1735) Overvalued in 2026?
Based on GuruFocus' analysis, Evermore Chemical Industry Co stock appears to be overvalued.
The current stock price of NT$22.45 is trading 49.6% above its estimated GF Value™ of NT$15.01.
GuruFocus considers Evermore Chemical Industry Co to be Significantly Overvalued.
Key valuation signals for TPE:1735:
Gross Margin %: 19.87% (11% above median its 10-year median of 17.94)
GF Value™: NT$15.01 vs. price of NT$22.45 (49.6% above fair value)
Industry Position: 15.2% below the Chemicals median (#993 of 1555)
No single metric tells the full story. See the TPE:1735 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Evermore Chemical Industry Co Business Description
Evermore Chemical Industry Co Ltd is engaged in the manufacturing and selling of synthetic resin, synthetic chemistry, and investment-related business operations. Its products are mainly organic polymers such as resins, ranging from polyurethane resin (PU), low free curing agent (LFT), polyester polyol resin (PE), and polyurethane system material (PUS) for synthetic leather to thermoplastic resin (TPU). These products have diverse applications and can be used in footwear, optoelectronics, textiles, and other industries, or in the manufacture of adhesives, coatings, inks, pipes, and other products. The Group's operating segments are: Domestic operations and Asia operations. Maximum revenue is derived from the Domestic operations segment, which includes manufacturing and sales in Taiwan.
71GF Score
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