Huang Hsiang Construction (TPE:2545) 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
Huang Hsiang Construction had a gross margin of 21.13% 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.
Huang Hsiang Construction Gross Margin % Related Terms
Huang Hsiang 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.
Huang Hsiang Construction Gross Margin % Competitor Comparison
For the Real Estate - Diversified subindustry, Huang Hsiang 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.
Huang Hsiang Construction Gross Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Huang Hsiang Construction's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Huang Hsiang 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.
Huang Hsiang Construction (TPE:2545) has a Gross Margin % of 21.13% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Huang Hsiang Construction and its competitors. This is 48% below median its historical median of 40.76. Over the past decade, Huang Hsiang Construction's Gross Margin % has ranged from 26.50 to 47.53. According to the industry distribution chart, Huang Hsiang Construction ranks #753 out of 1642 companies in the Real Estate industry, placing it in the top 45.9%.
Is Huang Hsiang Construction's Gross Margin % too high?
Huang Hsiang Construction's current Gross Margin % of 21.13% is 48% below median its 10-year median of 40.76. Over the past 10 years, this metric has ranged from a low of 26.50 to a high of 47.53. The Real Estate industry median Gross Margin % is 36.98. Huang Hsiang Construction's value of 21.13% is 42.9% below this industry median. Based on the distribution chart, Huang Hsiang Construction ranks #753 out of 1642 companies in the Real Estate industry, which is above the industry midpoint. Overall, Huang Hsiang Construction has a GF Score™ of 70/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Huang Hsiang Construction's Gross Margin % compare to competitors?
According to the Real Estate industry distribution chart, Huang Hsiang Construction ranks #753 out of 1642 companies for Gross Margin %. This puts Huang Hsiang Construction in the upper half of its industry. The industry median Gross Margin % is 36.98. Huang Hsiang Construction's value of 21.13% is 42.9% below this benchmark. Historically, Huang Hsiang Construction's own Gross Margin % has ranged from 26.50 to 47.53 over the past decade. While the company's 10-year median is 40.76 vs. the industry median of 36.98, Huang Hsiang 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 36.98, 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. Huang Hsiang Construction's current Gross Margin % of 21.13% is 42.9% 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 Huang Hsiang Construction 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. Huang Hsiang Construction's current Gross Margin % is 21.13%, which is 48% below median its own 10-year median of 40.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Huang Hsiang Construction stock overvalued right now?
Based on GuruFocus' analysis, Huang Hsiang Construction (TPE:2545) is currently considered Fairly Valued. The stock's GF Value™ is NT$35.00, compared to a current price of NT$37.50 — trading 7.1% above its estimated fair value. The current Gross Margin % is 21.13%, which is 48% below median its 10-year median of 40.76 and 42.9% below the Real Estate industry median of 36.98. Huang Hsiang Construction's overall GF Score™ is 70/100 with 15 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 Huang Hsiang Construction (TPE:2545), the current Gross Margin % is 21.13% 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 Huang Hsiang Construction (TPE:2545) Overvalued in 2026?
Based on GuruFocus' analysis, Huang Hsiang Construction stock appears to be overvalued.
The current stock price of NT$37.50 is trading 7.1% above its estimated GF Value™ of NT$35.00.
GuruFocus considers Huang Hsiang Construction to be Fairly Valued.
Key valuation signals for TPE:2545:
Gross Margin %: 21.13% (48% below median its 10-year median of 40.76)
GF Value™: NT$35.00 vs. price of NT$37.50 (7.1% above fair value)
Industry Position: 42.9% below the Real Estate median (#753 of 1642)
No single metric tells the full story. See the TPE:2545 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Huang Hsiang Construction Corp is principally engaged in the development of residential properties, the lease or sale of commercial buildings, comprehensive constructions, the development of specific districts, and hotel operations. The group has three operating segments: the Development department, which is engaged in the development of commercial and residential buildings for leasing and sales; the Construction department, which is engaged in the business of construction and civil engineering; and the Hotel department, which is engaged in the business of accommodation and catering services. The company generates the majority of its revenue from the Development segment. Geographically, the company operates in 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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