Hsin Kuang Steel CoTPE:2031 +1.96%80 Gross Margin % is 12.43% as of Dec. 2025, which is 44% above its 10-year median of 8.64. GuruFocus rates TPE:2031 with a GF Score™ of 80/100 and a GF Value™ of NT$53.76 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 593 Steel companies, Hsin Kuang Steel Co ranks worse than 64.76% on this metric.
Hsin Kuang Steel Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -6.7%.
The historical rank and industry rank for Hsin Kuang Steel Co's Gross Margin % or its related term are showing as below:
TPE:2031'
s Gross Margin % Range Over the Past 10 Years
Min: 2.08 Med: 8.64 Max: 22.1
Current: 8.88
During the past 13 years, the highestGross Margin % of Hsin Kuang Steel Co was 22.10%. The lowest was 2.08%. And the median was 8.64%.
TPE:2031's Gross Margin % is ranked worse than 64.76% of 593
companies
in the Steel industry
Industry Median: 12.6
vs TPE:2031: 8.88
Hsin Kuang Steel Co had a gross margin of 12.43% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Hsin Kuang Steel Co was -6.70% per year.
Hsin Kuang Steel Co (TPE:2031) 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
Hsin Kuang Steel Co had a gross margin of 12.43% 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.
Hsin Kuang Steel Co Gross Margin % Related Terms
Hsin Kuang Steel Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Hsin Kuang Steel Co's Gross Margin % can be seen below:
* 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:2031 vs NUE, STLD, RS: Gross Margin % Comparison
For the Steel subindustry, Hsin Kuang Steel 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.
Hsin Kuang Steel Co Gross Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Hsin Kuang Steel Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hsin Kuang Steel 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.
Hsin Kuang Steel Co (TPE:2031) has a Gross Margin % of 12.43% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Hsin Kuang Steel Co and its competitors. This is 44% above median its historical median of 8.64. Over the past decade, Hsin Kuang Steel Co's Gross Margin % has ranged from 2.08 to 22.10. According to the industry distribution chart, Hsin Kuang Steel Co ranks #384 out of 593 companies in the Steel industry, placing it in the top 64.8%.
Is Hsin Kuang Steel Co's Gross Margin % too high?
Hsin Kuang Steel Co's current Gross Margin % of 12.43% is 44% above median its 10-year median of 8.64. Over the past 10 years, this metric has ranged from a low of 2.08 to a high of 22.10. The Steel industry median Gross Margin % is 12.60. Hsin Kuang Steel Co's value of 12.43% is 1.3% below this industry median. Based on the distribution chart, Hsin Kuang Steel Co ranks #384 out of 593 companies in the Steel industry, which is below the industry midpoint. Overall, Hsin Kuang Steel Co has a GF Score™ of 80/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hsin Kuang Steel Co's Gross Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Hsin Kuang Steel Co ranks #384 out of 593 companies for Gross Margin %. This places Hsin Kuang Steel Co in the lower half of its industry. The industry median Gross Margin % is 12.60. Hsin Kuang Steel Co's value of 12.43% is 1.3% below this benchmark. Historically, Hsin Kuang Steel Co's own Gross Margin % has ranged from 2.08 to 22.10 over the past decade. While the company's 10-year median is 8.64 vs. the industry median of 12.60, Hsin Kuang Steel 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 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. Hsin Kuang Steel Co's current Gross Margin % of 12.43% is 1.3% 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 Hsin Kuang Steel Co 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. Hsin Kuang Steel Co's current Gross Margin % is 12.43%, which is 44% above median its own 10-year median of 8.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hsin Kuang Steel Co stock overvalued right now?
Based on GuruFocus' analysis, Hsin Kuang Steel Co (TPE:2031) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$53.76, compared to a current price of NT$39.05 — trading 27.4% below its estimated fair value. The current Gross Margin % is 12.43%, which is 44% above median its 10-year median of 8.64 and 1.3% below the Steel industry median of 12.60. Hsin Kuang Steel Co's overall GF Score™ is 80/100 with 8 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 Hsin Kuang Steel Co (TPE:2031), the current Gross Margin % is 12.43% 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 Hsin Kuang Steel Co (TPE:2031) Overvalued in 2026?
Based on GuruFocus' analysis, Hsin Kuang Steel Co stock appears to be undervalued.
The current stock price of NT$39.05 is trading 27.4% below its estimated GF Value™ of NT$53.76.
GuruFocus considers Hsin Kuang Steel Co to be Modestly Undervalued.
Key valuation signals for TPE:2031:
Gross Margin %: 12.43% (44% above median its 10-year median of 8.64)
GF Value™: NT$53.76 vs. price of NT$39.05 (27.4% below fair value)
Industry Position: 1.3% below the Steel median (#384 of 593)
No single metric tells the full story. See the TPE:2031 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hsin Kuang Steel Co Ltd manufactures and sells steel products. The business activities of the group include cutting, stamping, and the sale of steel products, including steel coils, steel plates, stainless steel, alloy steel, special steel, and SuperDyma. Geographically, its business activities are carried out across Taiwan. The company operates in four segments, which include Steel - Direct Sales, Steel - Manufacturing Sales, Construction Projects, and Leases. The majority of its revenue is generated from the Steel-Direct Sales Segment. Geographically, operates in Taiwan.
80GF Score
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