Kao Hsing Chang Iron & Steel (TPE:2008) 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
Kao Hsing Chang Iron & Steel had a gross margin of 17.77% 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.
Kao Hsing Chang Iron & Steel Gross Margin % Related Terms
Kao Hsing Chang Iron & Steel 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:2008 vs NUE, STLD, RS: Gross Margin % Comparison
For the Steel subindustry, Kao Hsing Chang Iron & Steel'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.
Kao Hsing Chang Iron & Steel Gross Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Kao Hsing Chang Iron & Steel's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Kao Hsing Chang Iron & Steel'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.
Kao Hsing Chang Iron & Steel (TPE:2008) has a Gross Margin % of 17.77% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Kao Hsing Chang Iron & Steel and its competitors. This is 139% above median its historical median of 7.42. According to the industry distribution chart, Kao Hsing Chang Iron & Steel ranks #223 out of 593 companies in the Steel industry, placing it in the top 37.6%.
Is Kao Hsing Chang Iron & Steel's Gross Margin % too high?
Kao Hsing Chang Iron & Steel's current Gross Margin % of 17.77% is 139% above median its 10-year median of 7.42. The Steel industry median Gross Margin % is 12.60. Kao Hsing Chang Iron & Steel's value of 17.77% is 41% above this industry median. Based on the distribution chart, Kao Hsing Chang Iron & Steel ranks #223 out of 593 companies in the Steel industry, which is above the industry midpoint. Overall, Kao Hsing Chang Iron & Steel has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Kao Hsing Chang Iron & Steel's Gross Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Kao Hsing Chang Iron & Steel ranks #223 out of 593 companies for Gross Margin %. This puts Kao Hsing Chang Iron & Steel in the upper half of its industry. The industry median Gross Margin % is 12.60. Kao Hsing Chang Iron & Steel's value of 17.77% is 41% above this benchmark. While the company's 10-year median is 7.42 vs. the industry median of 12.60, Kao Hsing Chang Iron & Steel 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. Kao Hsing Chang Iron & Steel's current Gross Margin % of 17.77% is 41% 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 Kao Hsing Chang Iron & Steel 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. Kao Hsing Chang Iron & Steel's current Gross Margin % is 17.77%, which is 139% above median its own 10-year median of 7.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kao Hsing Chang Iron & Steel stock overvalued right now?
Based on GuruFocus' analysis, Kao Hsing Chang Iron & Steel (TPE:2008) is currently considered Fairly Valued. The stock's GF Value™ is NT$27.95, compared to a current price of NT$30.80 — trading 10.2% above its estimated fair value. The current Gross Margin % is 17.77%, which is 139% above median its 10-year median of 7.42 and 41% above the Steel industry median of 12.60. Kao Hsing Chang Iron & Steel's overall GF Score™ is 73/100 with 10 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 Kao Hsing Chang Iron & Steel (TPE:2008), the current Gross Margin % is 17.77% 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 Kao Hsing Chang Iron & Steel (TPE:2008) Overvalued in 2026?
Based on GuruFocus' analysis, Kao Hsing Chang Iron & Steel stock appears to be overvalued.
The current stock price of NT$30.80 is trading 10.2% above its estimated GF Value™ of NT$27.95.
GuruFocus considers Kao Hsing Chang Iron & Steel to be Fairly Valued.
Key valuation signals for TPE:2008:
Gross Margin %: 17.77% (139% above median its 10-year median of 7.42)
GF Value™: NT$27.95 vs. price of NT$30.80 (10.2% above fair value)
Industry Position: 41% above the Steel median (#223 of 593)
No single metric tells the full story. See the TPE:2008 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kao Hsing Chang Iron & Steel Corp is engaged in the manufacturing, processing, and trading of steel pipes and cold-rolled steel sheets; manufacturing of metal architectural components; leasing; carpark management; and wholesale of other products. The majority of its revenue comes from the steel pipe department. Its geographical segments are Taiwan, United States and Japan, of which the majority of the revenue comes from Taiwan.
73GF Score
Get the complete analysis for TPE:2008
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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