Champion Building Materials Co (TPE:1806) 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
Champion Building Materials Co had a gross margin of 18.88% 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.
Champion Building Materials Co Gross Margin % Related Terms
Champion Building Materials 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.
Champion Building Materials Co Gross Margin % Chart
TPE:1806 vs TT, JCI, CARR: Gross Margin % Comparison
For the Building Products & Equipment subindustry, Champion Building Materials 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.
Champion Building Materials Co Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Champion Building Materials Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Champion Building Materials 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.
Champion Building Materials Co (TPE:1806) has a Gross Margin % of 18.88% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Champion Building Materials Co and its competitors. This is 24% below median its historical median of 24.72. Over the past decade, Champion Building Materials Co's Gross Margin % has ranged from 19.15 to 31.05. According to the industry distribution chart, Champion Building Materials Co ranks #790 out of 1718 companies in the Construction industry, placing it in the top 46%.
Is Champion Building Materials Co's Gross Margin % too high?
Champion Building Materials Co's current Gross Margin % of 18.88% is 24% below median its 10-year median of 24.72. Over the past 10 years, this metric has ranged from a low of 19.15 to a high of 31.05. The Construction industry median Gross Margin % is 20.75. Champion Building Materials Co's value of 18.88% is 9% below this industry median. Based on the distribution chart, Champion Building Materials Co ranks #790 out of 1718 companies in the Construction industry, which is above the industry midpoint. Overall, Champion Building Materials Co has a GF Score™ of 69/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Champion Building Materials Co's Gross Margin % compare to TT and JCI?
According to the Construction industry distribution chart, Champion Building Materials Co ranks #790 out of 1718 companies for Gross Margin %. This puts Champion Building Materials Co in the upper half of its industry. The industry median Gross Margin % is 20.75. Champion Building Materials Co's value of 18.88% is 9% below this benchmark. Historically, Champion Building Materials Co's own Gross Margin % has ranged from 19.15 to 31.05 over the past decade. While the company's 10-year median is 24.72 vs. the industry median of 20.75, Champion Building Materials 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 Construction company?
The median Gross Margin % among Construction companies is 20.75, based on 1,718 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. Champion Building Materials Co's current Gross Margin % of 18.88% is 9% 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 Champion Building Materials Co and its competitors. For the Construction industry, the median Gross Margin % is 20.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Champion Building Materials Co's current Gross Margin % is 18.88%, which is 24% below median its own 10-year median of 24.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Champion Building Materials Co stock overvalued right now?
Based on GuruFocus' analysis, Champion Building Materials Co (TPE:1806) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$10.86, compared to a current price of NT$8.52 — trading 21.5% below its estimated fair value. The current Gross Margin % is 18.88%, which is 24% below median its 10-year median of 24.72 and 9% below the Construction industry median of 20.75. Champion Building Materials Co's overall GF Score™ is 69/100 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 Champion Building Materials Co (TPE:1806), the current Gross Margin % is 18.88% 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 Champion Building Materials Co (TPE:1806) Overvalued in 2026?
Based on GuruFocus' analysis, Champion Building Materials Co stock appears to be undervalued.
The current stock price of NT$8.52 is trading 21.5% below its estimated GF Value™ of NT$10.86.
GuruFocus considers Champion Building Materials Co to be Modestly Undervalued.
Key valuation signals for TPE:1806:
Gross Margin %: 18.88% (24% below median its 10-year median of 24.72)
GF Value™: NT$10.86 vs. price of NT$8.52 (21.5% below fair value)
Industry Position: 9% below the Construction median (#790 of 1718)
No single metric tells the full story. See the TPE:1806 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Champion Building Materials Co Business Description
Champion Building Materials Co Ltd is engaged in the production and sales of ceramic products, stone products, fire-resistant materials, and other chemical products. It is also engaged in the development business for particular industry zones, new towns, and new communities. The company has three reportable segments: the Tiles business, the Chinese business segment, and the Wooden floor business segment. The Tiles business segment generates the majority of its revenue and engages in manufacturing, sales, and purchase of various floor tiles, wall tiles, polished tiles, and functional tiles in the Taiwan region. Geographically, the company derives its key revenue from Asia and the rest from America and Australia.
69GF Score
Get the complete analysis for TPE:1806
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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