Pacific Construction CoTPE:2506 70 Gross Margin % is 46.24% as of Dec. 2025, which is 14% above its 10-year median of 40.73. GuruFocus rates TPE:2506 with a GF Score™ of 70/100 and a GF Value™ of NT$9.97 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 1,645 Real Estate companies, Pacific Construction Co ranks better than 59.27% on this metric.
TPE:2506's Gross Margin % is ranked better than 59.27% of 1645
companies
in the Real Estate industry
Industry Median: 36.98
vs TPE:2506: 45.28
Pacific Construction Co had a gross margin of 46.24% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Pacific Construction Co was 0.00% per year.
Pacific Construction Co (TPE:2506) 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
Pacific Construction Co had a gross margin of 46.24% for the quarter that ended in Dec. 2025 => Durable 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.
Pacific Construction Co Gross Margin % Related Terms
Pacific Construction 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.
Pacific Construction Co Gross Margin % Competitor Comparison
For the Real Estate - Development subindustry, Pacific Construction 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.
Pacific Construction Co Gross Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Pacific Construction Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Pacific Construction 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.
Pacific Construction Co (TPE:2506) has a Gross Margin % of 46.24% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Pacific Construction Co and its competitors. This is 14% above median its historical median of 40.73. According to the industry distribution chart, Pacific Construction Co ranks #670 out of 1645 companies in the Real Estate industry, placing it in the top 40.7%.
Is Pacific Construction Co's Gross Margin % too high?
Pacific Construction Co's current Gross Margin % of 46.24% is 14% above median its 10-year median of 40.73. The Real Estate industry median Gross Margin % is 36.98. Pacific Construction Co's value of 46.24% is 25% above this industry median. Based on the distribution chart, Pacific Construction Co ranks #670 out of 1645 companies in the Real Estate industry, which is above the industry midpoint. Overall, Pacific Construction Co has a GF Score™ of 70/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Pacific Construction Co's Gross Margin % compare to competitors?
According to the Real Estate industry distribution chart, Pacific Construction Co ranks #670 out of 1645 companies for Gross Margin %. This puts Pacific Construction Co in the upper half of its industry. The industry median Gross Margin % is 36.98. Pacific Construction Co's value of 46.24% is 25% above this benchmark. While the company's 10-year median is 40.73 vs. the industry median of 36.98, Pacific Construction 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 Real Estate company?
The median Gross Margin % among Real Estate companies is 36.98, based on 1,645 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. Pacific Construction Co's current Gross Margin % of 46.24% is 25% 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 Pacific Construction Co and its competitors. For the Real Estate industry, the median Gross Margin % is 36.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pacific Construction Co's current Gross Margin % is 46.24%, which is 14% above median its own 10-year median of 40.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pacific Construction Co stock overvalued right now?
Based on GuruFocus' analysis, Pacific Construction Co (TPE:2506) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$9.97, compared to a current price of NT$8.90 — trading 10.7% below its estimated fair value. The current Gross Margin % is 46.24%, which is 14% above median its 10-year median of 40.73 and 25% above the Real Estate industry median of 36.98. Pacific Construction Co's overall GF Score™ is 70/100 with 5 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 Pacific Construction Co (TPE:2506), the current Gross Margin % is 46.24% 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 Pacific Construction Co (TPE:2506) Overvalued in 2026?
Based on GuruFocus' analysis, Pacific Construction Co stock appears to be undervalued.
The current stock price of NT$8.90 is trading 10.7% below its estimated GF Value™ of NT$9.97.
GuruFocus considers Pacific Construction Co to be Modestly Undervalued.
Key valuation signals for TPE:2506:
Gross Margin %: 46.24% (14% above median its 10-year median of 40.73)
GF Value™: NT$9.97 vs. price of NT$8.90 (10.7% below fair value)
Industry Position: 25% above the Real Estate median (#670 of 1645)
No single metric tells the full story. See the TPE:2506 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pacific Construction Co Ltd is engaged in the development and construction of real estate properties. The primary business of the company is contracting civil construction projects, land development and housing construction, housing and building development and rental, construction material manufacturing, precast housing, agency and trading of construction materials and their export business. The company's operating segments include Construction, Leasing Segment, and Property Management. It generates maximum revenue from the Property Management segment. Geographically, it derives a majority of its revenue from Taiwan.
70GF 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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