Cheng Shin Rubber Industry CoTPE:2105 +0.50%76 Gross Margin % is 22.84% as of Dec. 2025, which is 0% above its 10-year median of 22.80. GuruFocus rates TPE:2105 with a GF Score™ of 76/100 and a GF Value™ of NT$42.43 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,310 Vehicles & Parts companies, Cheng Shin Rubber Industry Co ranks better than 58.4% on this metric.
Cheng Shin Rubber Industry Co (TPE:2105) 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
Cheng Shin Rubber Industry Co had a gross margin of 22.84% for the quarter that ended in Dec. 2025 => Competition eroding margins
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.
Cheng Shin Rubber Industry Co Gross Margin % Related Terms
Cheng Shin Rubber 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.
Cheng Shin Rubber Industry Co Gross Margin % Chart
For the Auto Parts subindustry, Cheng Shin Rubber 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.
Cheng Shin Rubber Industry Co Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Cheng Shin Rubber Industry Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Cheng Shin Rubber 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.
Cheng Shin Rubber Industry Co (TPE:2105) has a Gross Margin % of 22.84% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Cheng Shin Rubber Industry Co and its competitors. This is near median its historical median of 22.80. Over the past decade, Cheng Shin Rubber Industry Co's Gross Margin % has ranged from 21.28 to 30.91. According to the industry distribution chart, Cheng Shin Rubber Industry Co ranks #545 out of 1310 companies in the Vehicles & Parts industry, placing it in the top 41.6%.
Is Cheng Shin Rubber Industry Co's Gross Margin % too high?
Cheng Shin Rubber Industry Co's current Gross Margin % of 22.84% is near median its 10-year median of 22.80. Over the past 10 years, this metric has ranged from a low of 21.28 to a high of 30.91. The Vehicles & Parts industry median Gross Margin % is 19.84. Cheng Shin Rubber Industry Co's value of 22.84% is 15.1% above this industry median. Based on the distribution chart, Cheng Shin Rubber Industry Co ranks #545 out of 1310 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Cheng Shin Rubber Industry Co has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cheng Shin Rubber Industry Co's Gross Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Cheng Shin Rubber Industry Co ranks #545 out of 1310 companies for Gross Margin %. This puts Cheng Shin Rubber Industry Co in the upper half of its industry. The industry median Gross Margin % is 19.84. Cheng Shin Rubber Industry Co's value of 22.84% is 15.1% above this benchmark. Historically, Cheng Shin Rubber Industry Co's own Gross Margin % has ranged from 21.28 to 30.91 over the past decade. While the company's 10-year median is 22.80 vs. the industry median of 19.84, Cheng Shin Rubber Industry Co 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 Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.84, based on 1,310 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. Cheng Shin Rubber Industry Co's current Gross Margin % of 22.84% is 15.1% 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 Cheng Shin Rubber Industry Co and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cheng Shin Rubber Industry Co's current Gross Margin % is 22.84%, which is near median its own 10-year median of 22.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cheng Shin Rubber Industry Co stock overvalued right now?
Based on GuruFocus' analysis, Cheng Shin Rubber Industry Co (TPE:2105) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$42.43, compared to a current price of NT$30.10 — trading 29.1% below its estimated fair value. The current Gross Margin % is 22.84%, which is near median its 10-year median of 22.80 and 15.1% above the Vehicles & Parts industry median of 19.84. Cheng Shin Rubber Industry Co's overall GF Score™ is 76/100 with 4 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 Cheng Shin Rubber Industry Co (TPE:2105), the current Gross Margin % is 22.84% 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 Cheng Shin Rubber Industry Co (TPE:2105) Overvalued in 2026?
Based on GuruFocus' analysis, Cheng Shin Rubber Industry Co stock appears to be undervalued.
The current stock price of NT$30.10 is trading 29.1% below its estimated GF Value™ of NT$42.43.
GuruFocus considers Cheng Shin Rubber Industry Co to be Modestly Undervalued.
Key valuation signals for TPE:2105:
Gross Margin %: 22.84% (near median its 10-year median of 22.80)
GF Value™: NT$42.43 vs. price of NT$30.10 (29.1% below fair value)
Industry Position: 15.1% above the Vehicles & Parts median (#545 of 1310)
No single metric tells the full story. See the TPE:2105 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cheng Shin Rubber Industry Co Business Description
Cheng Shin Rubber Industry Co Ltd makes and sells rubber tires under the CST brand name. The company also sells rubber inner tubes and other rubber products. It includes the Processing, manufacturing, and trading of bicycle tires, electrical vehicle tires, reclaimed rubber, various rubbers, resin, and others. The Business organization is divided into Cheng Shin (Taiwan), MAXXIS (Taiwan) Trading, Cheng Shin (Xiamen), Cheng Shin (China), Petrel (Xiamen), Cheng Shin (Thailand), and other segments based on the nature of each company. The main sources of sales revenue are from manufacturing and sales of bicycle tires, electrical vehicle tires, reclaimed rubber, etc. Its geographical segments are Taiwan, China, the United States, and Others.
76GF Score
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