Hwa Fong Rubber Ind CoTPE:2109 73 Gross Margin % is 19.20% as of Sep. 2025, which is 14% below its 10-year median of 22.28. GuruFocus rates TPE:2109 with a GF Score™ of 73/100 and a GF Value™ of NT$14.80 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,311 Vehicles & Parts companies, Hwa Fong Rubber Ind Co ranks better than 56.6% on this metric.
TPE:2109's Gross Margin % is ranked better than 56.6% of 1311
companies
in the Vehicles & Parts industry
Industry Median: 19.84
vs TPE:2109: 21.91
Hwa Fong Rubber Ind Co had a gross margin of 19.20% for the quarter that ended in Sep. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Hwa Fong Rubber Ind Co was 2.40% per year.
Hwa Fong Rubber Ind Co (TPE:2109) 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
Hwa Fong Rubber Ind Co had a gross margin of 19.20% for the quarter that ended in Sep. 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.
Hwa Fong Rubber Ind Co Gross Margin % Related Terms
Hwa Fong Rubber Ind Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Hwa Fong Rubber Ind 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.
For the Auto Parts subindustry, Hwa Fong Rubber Ind 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.
Hwa Fong Rubber Ind Co Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Hwa Fong Rubber Ind Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hwa Fong Rubber Ind 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.
Hwa Fong Rubber Ind Co (TPE:2109) has a Gross Margin % of 19.20% as of Sep. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Hwa Fong Rubber Ind Co and its competitors. This is 14% below median its historical median of 22.28. Over the past decade, Hwa Fong Rubber Ind Co's Gross Margin % has ranged from 17.68 to 26.51. According to the industry distribution chart, Hwa Fong Rubber Ind Co ranks #569 out of 1311 companies in the Vehicles & Parts industry, placing it in the top 43.4%.
Is Hwa Fong Rubber Ind Co's Gross Margin % too high?
Hwa Fong Rubber Ind Co's current Gross Margin % of 19.20% is 14% below median its 10-year median of 22.28. Over the past 10 years, this metric has ranged from a low of 17.68 to a high of 26.51. The Vehicles & Parts industry median Gross Margin % is 19.84. Hwa Fong Rubber Ind Co's value of 19.20% is 3.2% below this industry median. Based on the distribution chart, Hwa Fong Rubber Ind Co ranks #569 out of 1311 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Hwa Fong Rubber Ind Co has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hwa Fong Rubber Ind Co's Gross Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Hwa Fong Rubber Ind Co ranks #569 out of 1311 companies for Gross Margin %. This puts Hwa Fong Rubber Ind Co in the upper half of its industry. The industry median Gross Margin % is 19.84. Hwa Fong Rubber Ind Co's value of 19.20% is 3.2% below this benchmark. Historically, Hwa Fong Rubber Ind Co's own Gross Margin % has ranged from 17.68 to 26.51 over the past decade. While the company's 10-year median is 22.28 vs. the industry median of 19.84, Hwa Fong Rubber Ind 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 Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.84, based on 1,311 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. Hwa Fong Rubber Ind Co's current Gross Margin % of 19.20% is 3.2% 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 Hwa Fong Rubber Ind 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. Hwa Fong Rubber Ind Co's current Gross Margin % is 19.20%, which is 14% below median its own 10-year median of 22.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hwa Fong Rubber Ind Co stock overvalued right now?
Based on GuruFocus' analysis, Hwa Fong Rubber Ind Co (TPE:2109) is currently considered Fairly Valued. The stock's GF Value™ is NT$14.80, compared to a current price of NT$14.50 — trading 2% below its estimated fair value. The current Gross Margin % is 19.20%, which is 14% below median its 10-year median of 22.28 and 3.2% below the Vehicles & Parts industry median of 19.84. Hwa Fong Rubber Ind Co's overall GF Score™ is 73/100 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 Hwa Fong Rubber Ind Co (TPE:2109), the current Gross Margin % is 19.20% as of Sep. 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 Hwa Fong Rubber Ind Co (TPE:2109) Overvalued in 2026?
Based on GuruFocus' analysis, Hwa Fong Rubber Ind Co stock appears to be undervalued.
The current stock price of NT$14.50 is trading 2% below its estimated GF Value™ of NT$14.80.
GuruFocus considers Hwa Fong Rubber Ind Co to be Fairly Valued.
Key valuation signals for TPE:2109:
Gross Margin %: 19.20% (14% below median its 10-year median of 22.28)
GF Value™: NT$14.80 vs. price of NT$14.50 (2% below fair value)
Industry Position: 3.2% below the Vehicles & Parts median (#569 of 1311)
No single metric tells the full story. See the TPE:2109 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hwa Fong Rubber Ind Co Ltd is a Taiwan-based company engaged in the manufacture, processing, domestic and foreign sales, import and export of rubber and plastic products. The company is engaged in the manufacture, processing, distribution, and trading of inner and outer bicycle tubes for automobiles, agricultural vehicles, recreational vehicles, light trucks, and radial tires. The company's reportable segments from a geographical perspective are Taiwan, Thailand, the United States of America, China and Other areas. The company generates the majority of its revenue from Other Areas.
73GF Score
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