Taiwan ChelicTPE:4555 +1.27%72 Gross Margin % is 31.93% as of Dec. 2025, which is 7% below its 10-year median of 34.33. GuruFocus rates TPE:4555 with a GF Score™ of 72/100 and a GF Value™ of NT$52.83 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 2,454 Hardware companies, Taiwan Chelic ranks better than 61.61% 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
Taiwan Chelic had a gross margin of 31.93% 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.
Taiwan Chelic Gross Margin % Related Terms
Taiwan Chelic Gross Margin % Historical Data
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The historical data trend for Taiwan Chelic'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.
For the Electronic Components subindustry, Taiwan Chelic'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.
Taiwan Chelic Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Taiwan Chelic's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Taiwan Chelic'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.
Taiwan Chelic (TPE:4555) has a Gross Margin % of 31.93% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Taiwan Chelic and its competitors. This is near median its historical median of 34.33. Over the past decade, Taiwan Chelic's Gross Margin % has ranged from 26.06 to 42.32. According to the industry distribution chart, Taiwan Chelic ranks #942 out of 2454 companies in the Hardware industry, placing it in the top 38.4%.
Is Taiwan Chelic's Gross Margin % too high?
Taiwan Chelic's current Gross Margin % of 31.93% is near median its 10-year median of 34.33. Over the past 10 years, this metric has ranged from a low of 26.06 to a high of 42.32. The Hardware industry median Gross Margin % is 24.53. Taiwan Chelic's value of 31.93% is 30.2% above this industry median. Based on the distribution chart, Taiwan Chelic ranks #942 out of 2454 companies in the Hardware industry, which is above the industry midpoint. Overall, Taiwan Chelic has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Taiwan Chelic's Gross Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Taiwan Chelic ranks #942 out of 2454 companies for Gross Margin %. This puts Taiwan Chelic in the upper half of its industry. The industry median Gross Margin % is 24.53. Taiwan Chelic's value of 31.93% is 30.2% above this benchmark. Historically, Taiwan Chelic's own Gross Margin % has ranged from 26.06 to 42.32 over the past decade. While the company's 10-year median is 34.33 vs. the industry median of 24.53, Taiwan Chelic 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 Hardware company?
The median Gross Margin % among Hardware companies is 24.53, based on 2,454 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. Taiwan Chelic's current Gross Margin % of 31.93% is 30.2% 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 Taiwan Chelic and its competitors. For the Hardware industry, the median Gross Margin % is 24.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Taiwan Chelic's current Gross Margin % is 31.93%, which is near median its own 10-year median of 34.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Taiwan Chelic stock overvalued right now?
Based on GuruFocus' analysis, Taiwan Chelic (TPE:4555) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$52.83, compared to a current price of NT$47.70 — trading 9.7% below its estimated fair value. The current Gross Margin % is 31.93%, which is near median its 10-year median of 34.33 and 30.2% above the Hardware industry median of 24.53. Taiwan Chelic's overall GF Score™ is 72/100 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 Taiwan Chelic (TPE:4555), the current Gross Margin % is 31.93% 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 Taiwan Chelic (TPE:4555) Overvalued in 2026?
Based on GuruFocus' analysis, Taiwan Chelic stock appears to be undervalued.
The current stock price of NT$47.70 is trading 9.7% below its estimated GF Value™ of NT$52.83.
GuruFocus considers Taiwan Chelic to be Modestly Undervalued.
Key valuation signals for TPE:4555:
Gross Margin %: 31.93% (near median its 10-year median of 34.33)
GF Value™: NT$52.83 vs. price of NT$47.70 (9.7% below fair value)
Industry Position: 30.2% above the Hardware median (#942 of 2454)
No single metric tells the full story. See the TPE:4555 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Taiwan Chelic Corp Ltd is mainly engaged in the design, production, and trading of pneumatic and hydraulic equipment for a variety of machinery, and the parts thereof, and electronic parts. Its offerings include air units, control valves, actuators, pneumatic accessories, vacuum units, automatic modularized products and electro-control unit which are allocated and used widely in machinery sectors such as production facilities, inspection machines, packing machines, forming machines, repairmen equipment and factory automation. The majority of revenue is derived from the sale of Pneumatic components in China. Geographically, the company operates in 2 regions - Taiwan and China.
72GF Score
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