Khgears InternationalTPE:4571 -4.69%95 Gross Margin % is 33.35% as of Dec. 2025, which is 3% above its 10-year median of 32.31. GuruFocus rates TPE:4571 with a GF Score™ of 95/100 and a GF Value™ of NT$156.61 (Fairly Valued). The stock has 1 warning sign investors should review. Among 2,997 Industrial Products companies, Khgears International ranks better than 65.13% on this metric.
TPE:4571's Gross Margin % is ranked better than 65.13% of 2997
companies
in the Industrial Products industry
Industry Median: 26.81
vs TPE:4571: 32.77
Khgears International had a gross margin of 33.35% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Khgears International was -0.20% per year.
Khgears International (TPE:4571) 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
Khgears International had a gross margin of 33.35% 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.
Khgears International Gross Margin % Related Terms
Khgears International Gross Margin % Historical Data
* Premium members only.
The historical data trend for Khgears International'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:4571 vs SNA, RBC, LECO: Gross Margin % Comparison
For the Tools & Accessories subindustry, Khgears International'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.
Khgears International Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Khgears International's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Khgears International'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.
Khgears International (TPE:4571) has a Gross Margin % of 33.35% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Khgears International and its competitors. This is near median its historical median of 32.31. Over the past decade, Khgears International's Gross Margin % has ranged from 28.35 to 35.68. According to the industry distribution chart, Khgears International ranks #1045 out of 2997 companies in the Industrial Products industry, placing it in the top 34.9%.
Is Khgears International's Gross Margin % too high?
Khgears International's current Gross Margin % of 33.35% is near median its 10-year median of 32.31. Over the past 10 years, this metric has ranged from a low of 28.35 to a high of 35.68. The Industrial Products industry median Gross Margin % is 26.81. Khgears International's value of 33.35% is 24.4% above this industry median. Based on the distribution chart, Khgears International ranks #1045 out of 2997 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Khgears International has a GF Score™ of 95/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Khgears International's Gross Margin % compare to SNA and RBC?
According to the Industrial Products industry distribution chart, Khgears International ranks #1045 out of 2997 companies for Gross Margin %. This puts Khgears International in the upper half of its industry. The industry median Gross Margin % is 26.81. Khgears International's value of 33.35% is 24.4% above this benchmark. Historically, Khgears International's own Gross Margin % has ranged from 28.35 to 35.68 over the past decade. While the company's 10-year median is 32.31 vs. the industry median of 26.81, Khgears International 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. Khgears International's current Gross Margin % of 33.35% is 24.4% 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 Khgears International 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. Khgears International's current Gross Margin % is 33.35%, which is near median its own 10-year median of 32.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Khgears International stock overvalued right now?
Based on GuruFocus' analysis, Khgears International (TPE:4571) is currently considered Fairly Valued. The stock's GF Value™ is NT$156.61, compared to a current price of NT$162.50 — trading 3.8% above its estimated fair value. The current Gross Margin % is 33.35%, which is near median its 10-year median of 32.31 and 24.4% above the Industrial Products industry median of 26.81. Khgears International's overall GF Score™ is 95/100 with 1 warning sign 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 Khgears International (TPE:4571), the current Gross Margin % is 33.35% 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 Khgears International (TPE:4571) Overvalued in 2026?
Based on GuruFocus' analysis, Khgears International stock appears to be overvalued.
The current stock price of NT$162.50 is trading 3.8% above its estimated GF Value™ of NT$156.61.
GuruFocus considers Khgears International to be Fairly Valued.
Key valuation signals for TPE:4571:
Gross Margin %: 33.35% (near median its 10-year median of 32.31)
GF Value™: NT$156.61 vs. price of NT$162.50 (3.8% above fair value)
Industry Position: 24.4% above the Industrial Products median (#1045 of 2997)
No single metric tells the full story. See the TPE:4571 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Khgears International Ltd is engaged in the designing, manufacturing, and sale of shafts, gears and gearboxes for many industries. Its products include bevel gears, cylindrical gears, powder metallurgical gears, and gearboxes. The service industry includes sewing machines, power tools, garden tools and yachting industries.
95GF 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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