Continental HoldingsTPE:3703 +0.93%76 Gross Margin % is 13.84% as of Dec. 2025, which is 6% above its 10-year median of 13.06. GuruFocus rates TPE:3703 with a GF Score™ of 76/100 and a GF Value™ of NT$32.56 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 1,719 Construction companies, Continental Holdings ranks worse than 74.23% on this metric.
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
Continental Holdings had a gross margin of 13.84% 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.
Continental Holdings Gross Margin % Related Terms
Continental Holdings Gross Margin % Historical Data
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The historical data trend for Continental Holdings'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:3703 vs PWR, FIX, EME: Gross Margin % Comparison
For the Engineering & Construction subindustry, Continental Holdings'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.
Continental Holdings Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Continental Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Continental Holdings'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.
Continental Holdings (TPE:3703) has a Gross Margin % of 13.84% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Continental Holdings and its competitors. This is near median its historical median of 13.06. Over the past decade, Continental Holdings' Gross Margin % has ranged from 6.50 to 15.72. According to the industry distribution chart, Continental Holdings ranks #1276 out of 1719 companies in the Construction industry, placing it in the top 74.2%.
Is Continental Holdings' Gross Margin % too high?
Continental Holdings' current Gross Margin % of 13.84% is near median its 10-year median of 13.06. Over the past 10 years, this metric has ranged from a low of 6.50 to a high of 15.72. The Construction industry median Gross Margin % is 20.71. Continental Holdings' value of 13.84% is 33.2% below this industry median. Based on the distribution chart, Continental Holdings ranks #1276 out of 1719 companies in the Construction industry, which is below the industry midpoint. Overall, Continental Holdings has a GF Score™ of 76/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Continental Holdings' Gross Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Continental Holdings ranks #1276 out of 1719 companies for Gross Margin %. This places Continental Holdings in the lower half of its industry. The industry median Gross Margin % is 20.71. Continental Holdings' value of 13.84% is 33.2% below this benchmark. Historically, Continental Holdings' own Gross Margin % has ranged from 6.50 to 15.72 over the past decade. While the company's 10-year median is 13.06 vs. the industry median of 20.71, Continental Holdings 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 Construction company?
The median Gross Margin % among Construction companies is 20.71, based on 1,719 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. Continental Holdings's current Gross Margin % of 13.84% is 33.2% 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 Continental Holdings and its competitors. For the Construction industry, the median Gross Margin % is 20.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Continental Holdings's current Gross Margin % is 13.84%, which is near median its own 10-year median of 13.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Continental Holdings stock overvalued right now?
Based on GuruFocus' analysis, Continental Holdings (TPE:3703) is currently considered Possible Value Trap. The stock's GF Value™ is NT$32.56, compared to a current price of NT$21.65 — trading 33.5% below its estimated fair value. The current Gross Margin % is 13.84%, which is near median its 10-year median of 13.06 and 33.2% below the Construction industry median of 20.71. Continental Holdings' overall GF Score™ is 76/100 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 Continental Holdings (TPE:3703), the current Gross Margin % is 13.84% 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 Continental Holdings (TPE:3703) Overvalued in 2026?
Based on GuruFocus' analysis, Continental Holdings stock appears to be undervalued.
The current stock price of NT$21.65 is trading 33.5% below its estimated GF Value™ of NT$32.56.
GuruFocus considers Continental Holdings to be Possible Value Trap.
Key valuation signals for TPE:3703:
Gross Margin %: 13.84% (near median its 10-year median of 13.06)
GF Value™: NT$32.56 vs. price of NT$21.65 (33.5% below fair value)
Industry Position: 33.2% below the Construction median (#1276 of 1719)
No single metric tells the full story. See the TPE:3703 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Continental Holdings Corp has an investment portfolio covers three business sectors: Construction Engineering, Real Estate Development, and Environmental Project Development & Water Treatment businesses. Its segments include Construction Engineering: civil construction and building construction; Real Estate Development: real estate development and lease; Environmental Project Development & Water Treatment: expertise in processing sewage, industrial wastewater, solid waste, etc; Investment: to supervise and monitor each operating segment's operation, and control and allocate each operating segment's operating resources. The majority of the revenue is derived from the Construction Engineering segment.
76GF Score
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