Highwealth ConstructionTPE:2542 +1.28%78 Gross Margin % is 33.40% as of Dec. 2025, which is 10% above its 10-year median of 30.46. GuruFocus rates TPE:2542 with a GF Score™ of 78/100 and a GF Value™ of NT$37.13 (Modestly Overvalued). The stock has 12 warning signs investors should review. Among 1,642 Real Estate companies, Highwealth Construction ranks worse than 59.44% on this metric.
TPE:2542's Gross Margin % is ranked worse than 59.44% of 1642
companies
in the Real Estate industry
Industry Median: 37
vs TPE:2542: 29.91
Highwealth Construction had a gross margin of 33.40% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Highwealth Construction was 2.20% per year.
Highwealth Construction (TPE:2542) 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
Highwealth Construction had a gross margin of 33.40% 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.
Highwealth Construction Gross Margin % Related Terms
Highwealth Construction 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.
Highwealth Construction Gross Margin % Competitor Comparison
For the Real Estate - Development subindustry, Highwealth Construction'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.
Highwealth Construction Gross Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Highwealth Construction's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Highwealth Construction'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.
Highwealth Construction (TPE:2542) has a Gross Margin % of 33.40% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Highwealth Construction and its competitors. This is 10% above median its historical median of 30.46. Over the past decade, Highwealth Construction's Gross Margin % has ranged from 26.64 to 35.17. According to the industry distribution chart, Highwealth Construction ranks #976 out of 1642 companies in the Real Estate industry, placing it in the top 59.4%.
Is Highwealth Construction's Gross Margin % too high?
Highwealth Construction's current Gross Margin % of 33.40% is 10% above median its 10-year median of 30.46. Over the past 10 years, this metric has ranged from a low of 26.64 to a high of 35.17. The Real Estate industry median Gross Margin % is 37.00. Highwealth Construction's value of 33.40% is 9.7% below this industry median. Based on the distribution chart, Highwealth Construction ranks #976 out of 1642 companies in the Real Estate industry, which is below the industry midpoint. Overall, Highwealth Construction has a GF Score™ of 78/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Highwealth Construction's Gross Margin % compare to competitors?
According to the Real Estate industry distribution chart, Highwealth Construction ranks #976 out of 1642 companies for Gross Margin %. This places Highwealth Construction in the lower half of its industry. The industry median Gross Margin % is 37.00. Highwealth Construction's value of 33.40% is 9.7% below this benchmark. Historically, Highwealth Construction's own Gross Margin % has ranged from 26.64 to 35.17 over the past decade. While the company's 10-year median is 30.46 vs. the industry median of 37.00, Highwealth Construction 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 Real Estate company?
The median Gross Margin % among Real Estate companies is 37.00, based on 1,642 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. Highwealth Construction's current Gross Margin % of 33.40% is 9.7% 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 Highwealth Construction and its competitors. For the Real Estate industry, the median Gross Margin % is 37.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Highwealth Construction's current Gross Margin % is 33.40%, which is 10% above median its own 10-year median of 30.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Highwealth Construction stock overvalued right now?
Based on GuruFocus' analysis, Highwealth Construction (TPE:2542) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$37.13, compared to a current price of NT$43.65 — trading 17.6% above its estimated fair value. The current Gross Margin % is 33.40%, which is 10% above median its 10-year median of 30.46 and 9.7% below the Real Estate industry median of 37.00. Highwealth Construction's overall GF Score™ is 78/100 with 12 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 Highwealth Construction (TPE:2542), the current Gross Margin % is 33.40% 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 Highwealth Construction (TPE:2542) Overvalued in 2026?
Based on GuruFocus' analysis, Highwealth Construction stock appears to be overvalued.
The current stock price of NT$43.65 is trading 17.6% above its estimated GF Value™ of NT$37.13.
GuruFocus considers Highwealth Construction to be Modestly Overvalued.
Key valuation signals for TPE:2542:
Gross Margin %: 33.40% (10% above median its 10-year median of 30.46)
GF Value™: NT$37.13 vs. price of NT$43.65 (17.6% above fair value)
Industry Position: 9.7% below the Real Estate median (#976 of 1642)
No single metric tells the full story. See the TPE:2542 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Highwealth Construction Corp is engaged in the business of construction sales, and leasing of residential and commercial buildings. Geographically the activities are carried out in Taiwan. The firm has three segments: Developing; Constructing, Hotel and other divisions. The developing segment that derives the majority of revenue is responsible for developing new construction or rental opportunities. Constructing segment is responsible for constructing buildings. Department stores and hotel segment operates hotels, catering services, and other business operations. The Groups revenues are all generated from domestic business.
78GF Score
Get the complete analysis for TPE:2542
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TPE:2542 has been successfully added to your 
