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Grand Ocean Retail GroupTPE:5907 +0.21%49 Gross Margin % is 85.30% as of Dec. 2025, which is 6% above its 10-year median of 80.26. GuruFocus rates TPE:5907 with a GF Score™ of 49/100 and a GF Value™ of NT$7.30 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 1,118 Retail - Cyclical companies, Grand Ocean Retail Group ranks better than 98.48% on this metric.
Grand Ocean Retail Group (TPE:5907) 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
Grand Ocean Retail Group had a gross margin of 85.30% 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.
Grand Ocean Retail Group Gross Margin % Related Terms
Grand Ocean Retail Group 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.
For the Department Stores subindustry, Grand Ocean Retail Group'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.
Grand Ocean Retail Group Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Grand Ocean Retail Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Grand Ocean Retail Group'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.
Grand Ocean Retail Group (TPE:5907) has a Gross Margin % of 85.30% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Grand Ocean Retail Group and its competitors. This is near median its historical median of 80.26. Over the past decade, Grand Ocean Retail Group's Gross Margin % has ranged from 67.15 to 85.30. According to the industry distribution chart, Grand Ocean Retail Group ranks #17 out of 1118 companies in the Retail - Cyclical industry, placing it in the top 1.5%.
Is Grand Ocean Retail Group's Gross Margin % too high?
Grand Ocean Retail Group's current Gross Margin % of 85.30% is near median its 10-year median of 80.26. Over the past 10 years, this metric has ranged from a low of 67.15 to a high of 85.30. The Retail - Cyclical industry median Gross Margin % is 36.31. Grand Ocean Retail Group's value of 85.30% is 135% above this industry median. Based on the distribution chart, Grand Ocean Retail Group ranks #17 out of 1118 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Grand Ocean Retail Group has a GF Score™ of 49/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Grand Ocean Retail Group's Gross Margin % compare to DDS and M?
According to the Retail - Cyclical industry distribution chart, Grand Ocean Retail Group ranks #17 out of 1118 companies for Gross Margin %. This places Grand Ocean Retail Group in the top 2% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 36.31. Grand Ocean Retail Group's value of 85.30% is 135% above this benchmark. Historically, Grand Ocean Retail Group's own Gross Margin % has ranged from 67.15 to 85.30 over the past decade. While the company's 10-year median is 80.26 vs. the industry median of 36.31, Grand Ocean Retail Group 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 Retail - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.31, based on 1,118 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. Grand Ocean Retail Group's current Gross Margin % of 85.30% is 135% 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 Grand Ocean Retail Group and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Grand Ocean Retail Group's current Gross Margin % is 85.30%, which is near median its own 10-year median of 80.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Grand Ocean Retail Group stock overvalued right now?
Based on GuruFocus' analysis, Grand Ocean Retail Group (TPE:5907) is currently considered Possible Value Trap. The stock's GF Value™ is NT$7.30, compared to a current price of NT$4.88 — trading 33.2% below its estimated fair value. The current Gross Margin % is 85.30%, which is near median its 10-year median of 80.26 and 135% above the Retail - Cyclical industry median of 36.31. Grand Ocean Retail Group's overall GF Score™ is 49/100 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 Grand Ocean Retail Group (TPE:5907), the current Gross Margin % is 85.30% 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 Grand Ocean Retail Group (TPE:5907) Overvalued in 2026?
Based on GuruFocus' analysis, Grand Ocean Retail Group stock appears to be undervalued.
The current stock price of NT$4.88 is trading 33.2% below its estimated GF Value™ of NT$7.30.
GuruFocus considers Grand Ocean Retail Group to be Possible Value Trap.
Key valuation signals for TPE:5907:
Gross Margin %: 85.30% (near median its 10-year median of 80.26)
GF Value™: NT$7.30 vs. price of NT$4.88 (33.2% below fair value)
Industry Position: 135% above the Retail - Cyclical median (#17 of 1118)
No single metric tells the full story. See the TPE:5907 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Grand Ocean Retail Group Ltd operates in the department store retail business. The Group generates revenue from Commission and Commodity Sales. Its main business contents are business management consulting and retail sales. The Group is a large-scale and powerful department store retail group in mainland China. The segments of the Group include General Information, where the main revenue comes from department store retail; Information on Products and Services, where the Group belongs to department store retail business; Information of Regional Finance, where sales regions of the retail commodity are all in China; and customer information, where sales objects of the Group are all general consumers and there is no dependence upon the VIP. It generates revenue from China.
49GF Score
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