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TPE:5538's Gross Margin % is ranked worse than 50.76% of 593
companies
in the Steel industry
Industry Median: 12.6
vs TPE:5538: 12.12
Tong Ming Enterprise Co had a gross margin of 11.22% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Tong Ming Enterprise Co was -7.90% per year.
Tong Ming Enterprise Co (TPE:5538) 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
Tong Ming Enterprise Co had a gross margin of 11.22% for the quarter that ended in Dec. 2025 => No sustainable 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.
Tong Ming Enterprise Co Gross Margin % Related Terms
Tong Ming Enterprise 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:5538 vs NUE, STLD, RS: Gross Margin % Comparison
For the Steel subindustry, Tong Ming Enterprise 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.
Tong Ming Enterprise Co Gross Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Tong Ming Enterprise Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Tong Ming Enterprise 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.
Tong Ming Enterprise Co (TPE:5538) has a Gross Margin % of 11.22% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Tong Ming Enterprise Co and its competitors. This is 19% below median its historical median of 13.88. Over the past decade, Tong Ming Enterprise Co's Gross Margin % has ranged from 7.47 to 20.41. According to the industry distribution chart, Tong Ming Enterprise Co ranks #301 out of 593 companies in the Steel industry, placing it in the top 50.8%.
Is Tong Ming Enterprise Co's Gross Margin % too high?
Tong Ming Enterprise Co's current Gross Margin % of 11.22% is 19% below median its 10-year median of 13.88. Over the past 10 years, this metric has ranged from a low of 7.47 to a high of 20.41. The Steel industry median Gross Margin % is 12.60. Tong Ming Enterprise Co's value of 11.22% is 11% below this industry median. Based on the distribution chart, Tong Ming Enterprise Co ranks #301 out of 593 companies in the Steel industry, which is below the industry midpoint. Overall, Tong Ming Enterprise Co has a GF Score™ of 81/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Tong Ming Enterprise Co's Gross Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Tong Ming Enterprise Co ranks #301 out of 593 companies for Gross Margin %. This places Tong Ming Enterprise Co in the lower half of its industry. The industry median Gross Margin % is 12.60. Tong Ming Enterprise Co's value of 11.22% is 11% below this benchmark. Historically, Tong Ming Enterprise Co's own Gross Margin % has ranged from 7.47 to 20.41 over the past decade. While the company's 10-year median is 13.88 vs. the industry median of 12.60, Tong Ming Enterprise Co has consistently been below 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 Steel company?
The median Gross Margin % among Steel companies is 12.60, based on 593 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. Tong Ming Enterprise Co's current Gross Margin % of 11.22% is 11% below 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 Tong Ming Enterprise Co and its competitors. For the Steel industry, the median Gross Margin % is 12.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tong Ming Enterprise Co's current Gross Margin % is 11.22%, which is 19% below median its own 10-year median of 13.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tong Ming Enterprise Co stock overvalued right now?
Based on GuruFocus' analysis, Tong Ming Enterprise Co (TPE:5538) is currently considered Fairly Valued. The stock's GF Value™ is NT$30.68, compared to a current price of NT$33.45 — trading 9% above its estimated fair value. The current Gross Margin % is 11.22%, which is 19% below median its 10-year median of 13.88 and 11% below the Steel industry median of 12.60. Tong Ming Enterprise Co's overall GF Score™ is 81/100 with 6 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 Tong Ming Enterprise Co (TPE:5538), the current Gross Margin % is 11.22% 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 Tong Ming Enterprise Co (TPE:5538) Overvalued in 2026?
Based on GuruFocus' analysis, Tong Ming Enterprise Co stock appears to be overvalued.
The current stock price of NT$33.45 is trading 9% above its estimated GF Value™ of NT$30.68.
GuruFocus considers Tong Ming Enterprise Co to be Fairly Valued.
Key valuation signals for TPE:5538:
Gross Margin %: 11.22% (19% below median its 10-year median of 13.88)
GF Value™: NT$30.68 vs. price of NT$33.45 (9% above fair value)
Industry Position: 11% below the Steel median (#301 of 593)
No single metric tells the full story. See the TPE:5538 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tong Ming Enterprise Co Ltd is specialized in manufacturing and selling brand stainless steel fasteners and wires. The company derives the maximum revenue from Fasteners products. Geographically, the company operates in China. The company serves industries such as curtain wall, high-speed railways, communication, new energy, shipbuilding, animal husbandry, and foreign engineering projects. It derives maximum revenue from Fasteners followed by Wire, Strategic products, and others.
81GF Score
Get the complete analysis for TPE:5538
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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