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Prime Oil Chemical Service (TPE:2904) 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
Prime Oil Chemical Service had a gross margin of 23.10% for the quarter that ended in Mar. 2026 => 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.
Prime Oil Chemical Service Gross Margin % Related Terms
Prime Oil Chemical Service 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.
TPE:2904 vs SLB, BKR, FTI: Gross Margin % Comparison
For the Oil & Gas Equipment & Services subindustry, Prime Oil Chemical Service'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.
Prime Oil Chemical Service Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Prime Oil Chemical Service's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Prime Oil Chemical Service'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.
Prime Oil Chemical Service (TPE:2904) has a Gross Margin % of 23.10% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Prime Oil Chemical Service and its competitors. This is 38% below median its historical median of 37.05. Over the past decade, Prime Oil Chemical Service's Gross Margin % has ranged from 28.68 to 47.12. According to the industry distribution chart, Prime Oil Chemical Service ranks #412 out of 880 companies in the Oil & Gas industry, placing it in the top 46.8%.
Is Prime Oil Chemical Service's Gross Margin % too high?
Prime Oil Chemical Service's current Gross Margin % of 23.10% is 38% below median its 10-year median of 37.05. Over the past 10 years, this metric has ranged from a low of 28.68 to a high of 47.12. The Oil & Gas industry median Gross Margin % is 26.76. Prime Oil Chemical Service's value of 23.10% is 13.7% below this industry median. Based on the distribution chart, Prime Oil Chemical Service ranks #412 out of 880 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, Prime Oil Chemical Service has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Prime Oil Chemical Service's Gross Margin % compare to SLB and BKR?
According to the Oil & Gas industry distribution chart, Prime Oil Chemical Service ranks #412 out of 880 companies for Gross Margin %. This puts Prime Oil Chemical Service in the upper half of its industry. The industry median Gross Margin % is 26.76. Prime Oil Chemical Service's value of 23.10% is 13.7% below this benchmark. Historically, Prime Oil Chemical Service's own Gross Margin % has ranged from 28.68 to 47.12 over the past decade. While the company's 10-year median is 37.05 vs. the industry median of 26.76, Prime Oil Chemical Service 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 an Oil & Gas company?
The median Gross Margin % among Oil & Gas companies is 26.76, based on 880 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. Prime Oil Chemical Service's current Gross Margin % of 23.10% is 13.7% 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 Prime Oil Chemical Service and its competitors. For the Oil & Gas industry, the median Gross Margin % is 26.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Prime Oil Chemical Service's current Gross Margin % is 23.10%, which is 38% below median its own 10-year median of 37.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Prime Oil Chemical Service stock overvalued right now?
Based on GuruFocus' analysis, Prime Oil Chemical Service (TPE:2904) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$17.00, compared to a current price of NT$12.75 — trading 25% below its estimated fair value. The current Gross Margin % is 23.10%, which is 38% below median its 10-year median of 37.05 and 13.7% below the Oil & Gas industry median of 26.76. Prime Oil Chemical Service's overall GF Score™ is 71/100 with 7 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 Prime Oil Chemical Service (TPE:2904), the current Gross Margin % is 23.10% as of Mar. 2026. 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 Prime Oil Chemical Service (TPE:2904) Overvalued in 2026?
Based on GuruFocus' analysis, Prime Oil Chemical Service stock appears to be undervalued.
The current stock price of NT$12.75 is trading 25% below its estimated GF Value™ of NT$17.00.
GuruFocus considers Prime Oil Chemical Service to be Modestly Undervalued.
Key valuation signals for TPE:2904:
Gross Margin %: 23.10% (38% below median its 10-year median of 37.05)
GF Value™: NT$17.00 vs. price of NT$12.75 (25% below fair value)
Industry Position: 13.7% below the Oil & Gas median (#412 of 880)
No single metric tells the full story. See the TPE:2904 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Prime Oil Chemical Service Corp is engaged in providing tank terminal services for oil and petrochemical storage, and the energy division. The firm also offers port facilities and ancillary equipment. The Company is engaged in chemical, oil tank storage and delivery services, and solar power generation business.
71GF Score
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