Hotai Motor CoTPE:2207 -0.11%72 Gross Margin % is 15.51% as of Dec. 2025, which is 9% above its 10-year median of 14.17. GuruFocus rates TPE:2207 with a GF Score™ of 72/100 and a GF Value™ of NT$683.46 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 1,310 Vehicles & Parts companies, Hotai Motor Co ranks worse than 68.4% on this metric.
The historical rank and industry rank for Hotai Motor Co's Gross Margin % or its related term are showing as below:
TPE:2207'
s Gross Margin % Range Over the Past 10 Years
Min: 9.77 Med: 14.17 Max: 18.07
Current: 15.1
During the past 13 years, the highestGross Margin % of Hotai Motor Co was 18.07%. The lowest was 9.77%. And the median was 14.17%.
TPE:2207's Gross Margin % is ranked worse than 68.4% of 1310
companies
in the Vehicles & Parts industry
Industry Median: 19.835
vs TPE:2207: 15.10
Hotai Motor Co had a gross margin of 15.51% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Hotai Motor Co was 6.70% per year.
Hotai Motor Co (TPE:2207) 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
Hotai Motor Co had a gross margin of 15.51% 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.
Hotai Motor Co Gross Margin % Related Terms
Hotai Motor Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Hotai Motor 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:2207 vs CVNA, PAG, ALTB: Gross Margin % Comparison
For the Auto & Truck Dealerships subindustry, Hotai Motor 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.
Hotai Motor Co Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Hotai Motor Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hotai Motor 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.
Hotai Motor Co (TPE:2207) has a Gross Margin % of 15.51% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Hotai Motor Co and its competitors. This is near median its historical median of 14.17. Over the past decade, Hotai Motor Co's Gross Margin % has ranged from 9.77 to 18.07. According to the industry distribution chart, Hotai Motor Co ranks #896 out of 1310 companies in the Vehicles & Parts industry, placing it in the top 68.4%.
Is Hotai Motor Co's Gross Margin % too high?
Hotai Motor Co's current Gross Margin % of 15.51% is near median its 10-year median of 14.17. Over the past 10 years, this metric has ranged from a low of 9.77 to a high of 18.07. The Vehicles & Parts industry median Gross Margin % is 19.84. Hotai Motor Co's value of 15.51% is 21.8% below this industry median. Based on the distribution chart, Hotai Motor Co ranks #896 out of 1310 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Hotai Motor Co has a GF Score™ of 72/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Hotai Motor Co's Gross Margin % compare to CVNA and PAG?
According to the Vehicles & Parts industry distribution chart, Hotai Motor Co ranks #896 out of 1310 companies for Gross Margin %. This places Hotai Motor Co in the lower half of its industry. The industry median Gross Margin % is 19.84. Hotai Motor Co's value of 15.51% is 21.8% below this benchmark. Historically, Hotai Motor Co's own Gross Margin % has ranged from 9.77 to 18.07 over the past decade. While the company's 10-year median is 14.17 vs. the industry median of 19.84, Hotai Motor 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 1,310 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. Hotai Motor Co's current Gross Margin % of 15.51% is 21.8% 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 Hotai Motor 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. Hotai Motor Co's current Gross Margin % is 15.51%, which is near median its own 10-year median of 14.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hotai Motor Co stock overvalued right now?
Based on GuruFocus' analysis, Hotai Motor Co (TPE:2207) is currently considered Possible Value Trap. The stock's GF Value™ is NT$683.46, compared to a current price of NT$465.00 — trading 32% below its estimated fair value. The current Gross Margin % is 15.51%, which is near median its 10-year median of 14.17 and 21.8% below the Vehicles & Parts industry median of 19.84. Hotai Motor Co's overall GF Score™ is 72/100 with 6 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 Hotai Motor Co (TPE:2207), the current Gross Margin % is 15.51% 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 Hotai Motor Co (TPE:2207) Overvalued in 2026?
Based on GuruFocus' analysis, Hotai Motor Co stock appears to be undervalued.
The current stock price of NT$465.00 is trading 32% below its estimated GF Value™ of NT$683.46.
GuruFocus considers Hotai Motor Co to be Possible Value Trap.
Key valuation signals for TPE:2207:
Gross Margin %: 15.51% (near median its 10-year median of 14.17)
GF Value™: NT$683.46 vs. price of NT$465.00 (32% below fair value)
Industry Position: 21.8% below the Vehicles & Parts median (#896 of 1310)
No single metric tells the full story. See the TPE:2207 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hotai Motor Co Ltd is engaged in import, trading, selling and repairing of vehicles and their parts, as well as installment sales and leases of vehicles, and sales of used vehicles and business of property insurance. The segments of the company include the Distributor of Toyota and Hino products segments, Installment trading, Leasing, and other segments. It has operations across both Taiwan and mainland China, with the vast majority of revenue derived domestically.
72GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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