Jinan Acetate Chemical Co (TPE:4763) 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
Jinan Acetate Chemical Co had a gross margin of 57.83% for the quarter that ended in Dec. 2025 => Durable 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.
Jinan Acetate Chemical Co Gross Margin % Related Terms
Jinan Acetate Chemical 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.
TPE:4763 vs LIN, SHW, ECL: Gross Margin % Comparison
For the Specialty Chemicals subindustry, Jinan Acetate Chemical 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.
Jinan Acetate Chemical Co Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Jinan Acetate Chemical Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Jinan Acetate Chemical 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.
Jinan Acetate Chemical Co (TPE:4763) has a Gross Margin % of 57.83% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Jinan Acetate Chemical Co and its competitors. This is 79% above median its historical median of 32.23. Over the past decade, Jinan Acetate Chemical Co's Gross Margin % has ranged from 24.23 to 63.26. According to the industry distribution chart, Jinan Acetate Chemical Co ranks #77 out of 1561 companies in the Chemicals industry, placing it in the top 4.9%.
Is Jinan Acetate Chemical Co's Gross Margin % too high?
Jinan Acetate Chemical Co's current Gross Margin % of 57.83% is 79% above median its 10-year median of 32.23. Over the past 10 years, this metric has ranged from a low of 24.23 to a high of 63.26. The Chemicals industry median Gross Margin % is 23.35. Jinan Acetate Chemical Co's value of 57.83% is 147.7% above this industry median. Based on the distribution chart, Jinan Acetate Chemical Co ranks #77 out of 1561 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Jinan Acetate Chemical Co has a GF Score™ of 91/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Jinan Acetate Chemical Co's Gross Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Jinan Acetate Chemical Co ranks #77 out of 1561 companies for Gross Margin %. This places Jinan Acetate Chemical Co in the top 5% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 23.35. Jinan Acetate Chemical Co's value of 57.83% is 147.7% above this benchmark. Historically, Jinan Acetate Chemical Co's own Gross Margin % has ranged from 24.23 to 63.26 over the past decade. While the company's 10-year median is 32.23 vs. the industry median of 23.35, Jinan Acetate Chemical 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 a Chemicals company?
The median Gross Margin % among Chemicals companies is 23.35, based on 1,561 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. Jinan Acetate Chemical Co's current Gross Margin % of 57.83% is 147.7% 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 Jinan Acetate Chemical Co and its competitors. For the Chemicals industry, the median Gross Margin % is 23.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Jinan Acetate Chemical Co's current Gross Margin % is 57.83%, which is 79% above median its own 10-year median of 32.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Jinan Acetate Chemical Co stock overvalued right now?
Based on GuruFocus' analysis, Jinan Acetate Chemical Co (TPE:4763) is currently considered Possible Value Trap. The stock's GF Value™ is NT$109.51, compared to a current price of NT$47.40 — trading 56.7% below its estimated fair value. The current Gross Margin % is 57.83%, which is 79% above median its 10-year median of 32.23 and 147.7% above the Chemicals industry median of 23.35. Jinan Acetate Chemical Co's overall GF Score™ is 91/100 with 4 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 Jinan Acetate Chemical Co (TPE:4763), the current Gross Margin % is 57.83% 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 Jinan Acetate Chemical Co (TPE:4763) Overvalued in 2026?
Based on GuruFocus' analysis, Jinan Acetate Chemical Co stock appears to be undervalued.
The current stock price of NT$47.40 is trading 56.7% below its estimated GF Value™ of NT$109.51.
GuruFocus considers Jinan Acetate Chemical Co to be Possible Value Trap.
Key valuation signals for TPE:4763:
Gross Margin %: 57.83% (79% above median its 10-year median of 32.23)
GF Value™: NT$109.51 vs. price of NT$47.40 (56.7% below fair value)
Industry Position: 147.7% above the Chemicals median (#77 of 1561)
No single metric tells the full story. See the TPE:4763 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Jinan Acetate Chemical Co Ltd is a chemical company based in China. The company is engaged in the manufacturing and sales of cellulose acetate products. It derives a majority of its revenue from Cellulose acetate tow products. Geographically, it generates maximum revenue from Europe and also has a presence in America, Africa, and Asia.
91GF Score
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