Longda Construction & Development (TPE:5519) 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
Longda Construction & Development had a gross margin of 34.27% 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.
Longda Construction & Development Gross Margin % Related Terms
Longda Construction & Development 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.
Longda Construction & Development Gross Margin % Chart
TPE:5519 vs PWR, FIX, EME: Gross Margin % Comparison
For the Engineering & Construction subindustry, Longda Construction & Development'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.
Longda Construction & Development Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Longda Construction & Development's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Longda Construction & Development'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.
Longda Construction & Development (TPE:5519) has a Gross Margin % of 34.27% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Longda Construction & Development and its competitors. This is 44% above median its historical median of 23.85. Over the past decade, Longda Construction & Development's Gross Margin % has ranged from 16.39 to 33.10. According to the industry distribution chart, Longda Construction & Development ranks #456 out of 1720 companies in the Construction industry, placing it in the top 26.5%.
Is Longda Construction & Development's Gross Margin % too high?
Longda Construction & Development's current Gross Margin % of 34.27% is 44% above median its 10-year median of 23.85. Over the past 10 years, this metric has ranged from a low of 16.39 to a high of 33.10. The Construction industry median Gross Margin % is 20.72. Longda Construction & Development's value of 34.27% is 65.4% above this industry median. Based on the distribution chart, Longda Construction & Development ranks #456 out of 1720 companies in the Construction industry, which is above the industry midpoint. Overall, Longda Construction & Development has a GF Score™ of 94/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Longda Construction & Development's Gross Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Longda Construction & Development ranks #456 out of 1720 companies for Gross Margin %. This puts Longda Construction & Development in the upper half of its industry. The industry median Gross Margin % is 20.72. Longda Construction & Development's value of 34.27% is 65.4% above this benchmark. Historically, Longda Construction & Development's own Gross Margin % has ranged from 16.39 to 33.10 over the past decade. While the company's 10-year median is 23.85 vs. the industry median of 20.72, Longda Construction & Development 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 Construction company?
The median Gross Margin % among Construction companies is 20.72, based on 1,720 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. Longda Construction & Development's current Gross Margin % of 34.27% is 65.4% 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 Longda Construction & Development and its competitors. For the Construction industry, the median Gross Margin % is 20.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Longda Construction & Development's current Gross Margin % is 34.27%, which is 44% above median its own 10-year median of 23.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Longda Construction & Development stock overvalued right now?
Based on GuruFocus' analysis, Longda Construction & Development (TPE:5519) is currently considered Fairly Valued. The stock's GF Value™ is NT$33.29, compared to a current price of NT$34.20 — trading 2.7% above its estimated fair value. The current Gross Margin % is 34.27%, which is 44% above median its 10-year median of 23.85 and 65.4% above the Construction industry median of 20.72. Longda Construction & Development's overall GF Score™ is 94/100 with 3 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 Longda Construction & Development (TPE:5519), the current Gross Margin % is 34.27% 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 Longda Construction & Development (TPE:5519) Overvalued in 2026?
Based on GuruFocus' analysis, Longda Construction & Development stock appears to be overvalued.
The current stock price of NT$34.20 is trading 2.7% above its estimated GF Value™ of NT$33.29.
GuruFocus considers Longda Construction & Development to be Fairly Valued.
Key valuation signals for TPE:5519:
Gross Margin %: 34.27% (44% above median its 10-year median of 23.85)
GF Value™: NT$33.29 vs. price of NT$34.20 (2.7% above fair value)
Industry Position: 65.4% above the Construction median (#456 of 1720)
No single metric tells the full story. See the TPE:5519 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Longda Construction & Development Business Description
Longda Construction & Development Corp is engaged in the integrated construction business of construction and civil engineering, as well as the development, leasing, and sale of residential housing and buildings. The group operates in two reportable segments namely Construction Division: This segment is responsible for comprehensive construction services, including building and civil engineering works. Property Development and Sales Division: This segment is responsible for the development, leasing, and sale of residential and commercial buildings. Geographically it's presence is in Taiwan and Japan regions.
94GF 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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