TPE:2006's Gross Margin % is ranked better than 55.99% of 593
companies
in the Steel industry
Industry Median: 12.6
vs TPE:2006: 14.83
Tung Ho Steel Enterprise had a gross margin of 15.94% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Tung Ho Steel Enterprise was -1.50% per year.
Tung Ho Steel Enterprise (TPE:2006) 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
Tung Ho Steel Enterprise had a gross margin of 15.94% 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.
Tung Ho Steel Enterprise Gross Margin % Related Terms
Tung Ho Steel Enterprise 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:2006 vs NUE, STLD, RS: Gross Margin % Comparison
For the Steel subindustry, Tung Ho Steel Enterprise'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.
Tung Ho Steel Enterprise Gross Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Tung Ho Steel Enterprise's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Tung Ho Steel Enterprise'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.
Tung Ho Steel Enterprise (TPE:2006) has a Gross Margin % of 15.94% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Tung Ho Steel Enterprise and its competitors. This is 20% above median its historical median of 13.27. Over the past decade, Tung Ho Steel Enterprise's Gross Margin % has ranged from 8.36 to 16.11. According to the industry distribution chart, Tung Ho Steel Enterprise ranks #261 out of 593 companies in the Steel industry, placing it in the top 44%.
Is Tung Ho Steel Enterprise's Gross Margin % too high?
Tung Ho Steel Enterprise's current Gross Margin % of 15.94% is 20% above median its 10-year median of 13.27. Over the past 10 years, this metric has ranged from a low of 8.36 to a high of 16.11. The Steel industry median Gross Margin % is 12.60. Tung Ho Steel Enterprise's value of 15.94% is 26.5% above this industry median. Based on the distribution chart, Tung Ho Steel Enterprise ranks #261 out of 593 companies in the Steel industry, which is above the industry midpoint. Overall, Tung Ho Steel Enterprise has a GF Score™ of 88/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Tung Ho Steel Enterprise's Gross Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Tung Ho Steel Enterprise ranks #261 out of 593 companies for Gross Margin %. This puts Tung Ho Steel Enterprise in the upper half of its industry. The industry median Gross Margin % is 12.60. Tung Ho Steel Enterprise's value of 15.94% is 26.5% above this benchmark. Historically, Tung Ho Steel Enterprise's own Gross Margin % has ranged from 8.36 to 16.11 over the past decade. While the company's 10-year median is 13.27 vs. the industry median of 12.60, Tung Ho Steel Enterprise 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 Steel company?
The median Gross Margin % among Steel companies is 12.60, based on 593 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. Tung Ho Steel Enterprise's current Gross Margin % of 15.94% is 26.5% 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 Tung Ho Steel Enterprise and its competitors. For the Steel industry, the median Gross Margin % is 12.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tung Ho Steel Enterprise's current Gross Margin % is 15.94%, which is 20% above median its own 10-year median of 13.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tung Ho Steel Enterprise stock overvalued right now?
Based on GuruFocus' analysis, Tung Ho Steel Enterprise (TPE:2006) is currently considered Fairly Valued. The stock's GF Value™ is NT$64.08, compared to a current price of NT$69.40 — trading 8.3% above its estimated fair value. The current Gross Margin % is 15.94%, which is 20% above median its 10-year median of 13.27 and 26.5% above the Steel industry median of 12.60. Tung Ho Steel Enterprise's overall GF Score™ is 88/100 with 3 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 Tung Ho Steel Enterprise (TPE:2006), the current Gross Margin % is 15.94% 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 Tung Ho Steel Enterprise (TPE:2006) Overvalued in 2026?
Based on GuruFocus' analysis, Tung Ho Steel Enterprise stock appears to be overvalued.
The current stock price of NT$69.40 is trading 8.3% above its estimated GF Value™ of NT$64.08.
GuruFocus considers Tung Ho Steel Enterprise to be Fairly Valued.
Key valuation signals for TPE:2006:
Gross Margin %: 15.94% (20% above median its 10-year median of 13.27)
GF Value™: NT$64.08 vs. price of NT$69.40 (8.3% above fair value)
Industry Position: 26.5% above the Steel median (#261 of 593)
No single metric tells the full story. See the TPE:2006 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tung Ho Steel Enterprise Corp manufactures and sells Re-Bar, section, and plate. It processes, and sells reinforcing bars, flat iron, angle iron, wire rod, and other steel products; manufactures, processes, and sells structural steel, alloy steel, tool steel, high carbon steel, and other special steels; ship dismantling; used ship sales. Its segments include Steel segment including the Taipei headquarters, Taoyuan processing center, Taoyuan plant, Taichung port logistics center, Miaoli Plant, Kaohsiung plant and THSVC, engaged in the manufacture and sale of steel products; and Steel Structure segment including Tung Kang Steel Structure Corp, Tung Kang Engineering & Construction Corp, engaged in steel structure processing, steel structure engineering and civil construction engineering.
88GF Score
Get the complete analysis for TPE:2006
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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