Strong H Machinery Technology Co (TPE:4560) 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
Strong H Machinery Technology Co had a gross margin of 33.75% 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.
Strong H Machinery Technology Co Gross Margin % Related Terms
Strong H Machinery Technology Co 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.
Strong H Machinery Technology Co Gross Margin % Chart
TPE:4560 vs SNA, RBC, LECO: Gross Margin % Comparison
For the Tools & Accessories subindustry, Strong H Machinery Technology Co'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.
Strong H Machinery Technology Co Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Strong H Machinery Technology Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Strong H Machinery Technology Co'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.
Strong H Machinery Technology Co (TPE:4560) has a Gross Margin % of 33.75% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Strong H Machinery Technology Co and its competitors. This is near median its historical median of 36.99. Over the past decade, Strong H Machinery Technology Co's Gross Margin % has ranged from 31.24 to 41.05. According to the industry distribution chart, Strong H Machinery Technology Co ranks #868 out of 2997 companies in the Industrial Products industry, placing it in the top 29%.
Is Strong H Machinery Technology Co's Gross Margin % too high?
Strong H Machinery Technology Co's current Gross Margin % of 33.75% is near median its 10-year median of 36.99. Over the past 10 years, this metric has ranged from a low of 31.24 to a high of 41.05. The Industrial Products industry median Gross Margin % is 26.81. Strong H Machinery Technology Co's value of 33.75% is 25.9% above this industry median. Based on the distribution chart, Strong H Machinery Technology Co ranks #868 out of 2997 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Strong H Machinery Technology Co has a GF Score™ of 85/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Strong H Machinery Technology Co's Gross Margin % compare to SNA and RBC?
According to the Industrial Products industry distribution chart, Strong H Machinery Technology Co ranks #868 out of 2997 companies for Gross Margin %. This puts Strong H Machinery Technology Co in the upper half of its industry. The industry median Gross Margin % is 26.81. Strong H Machinery Technology Co's value of 33.75% is 25.9% above this benchmark. Historically, Strong H Machinery Technology Co's own Gross Margin % has ranged from 31.24 to 41.05 over the past decade. While the company's 10-year median is 36.99 vs. the industry median of 26.81, Strong H Machinery Technology Co 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.81, based on 2,997 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. Strong H Machinery Technology Co's current Gross Margin % of 33.75% is 25.9% 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 Strong H Machinery Technology Co and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Strong H Machinery Technology Co's current Gross Margin % is 33.75%, which is near median its own 10-year median of 36.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Strong H Machinery Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Strong H Machinery Technology Co (TPE:4560) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$40.31, compared to a current price of NT$33.20 — trading 17.6% below its estimated fair value. The current Gross Margin % is 33.75%, which is near median its 10-year median of 36.99 and 25.9% above the Industrial Products industry median of 26.81. Strong H Machinery Technology Co's overall GF Score™ is 85/100 with 2 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 Strong H Machinery Technology Co (TPE:4560), the current Gross Margin % is 33.75% 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 Strong H Machinery Technology Co (TPE:4560) Overvalued in 2026?
Based on GuruFocus' analysis, Strong H Machinery Technology Co stock appears to be undervalued.
The current stock price of NT$33.20 is trading 17.6% below its estimated GF Value™ of NT$40.31.
GuruFocus considers Strong H Machinery Technology Co to be Modestly Undervalued.
Key valuation signals for TPE:4560:
Gross Margin %: 33.75% (near median its 10-year median of 36.99)
GF Value™: NT$40.31 vs. price of NT$33.20 (17.6% below fair value)
Industry Position: 25.9% above the Industrial Products median (#868 of 2997)
No single metric tells the full story. See the TPE:4560 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Strong H Machinery Technology Co Business Description
Strong H Machinery Technology Co is a professional precision machining manufacturer. The company mainly produces and sells industrial sewing machine parts for assembly by machine manufacturers and repair by end users. It offers various types of industrial sewing machine knives to customers, including needle plates, teeth, presser feet, and needle embroidery machine knives. Its products include industrial sewing machine knives, straight knives, round knives, gauge sets, needle plate shear lines, and computerized embroidery machine parts. The Group's only reportable segment is the sewing machine spare parts segment, as the Group's main activities are manufacturing and selling sewing machine spare parts. The company operates in China and Taiwan, with the majority of revenue coming from China.
85GF 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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