Hotai Finance CoTPE:6592 +3.90%86 Gross Margin % is 58.99% as of Dec. 2025, which is 4% below its 10-year median of 61.55. GuruFocus rates TPE:6592 with a GF Score™ of 86/100 and a GF Value™ of NT$81.32 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 386 Credit Services companies, Hotai Finance Co ranks better than 58.81% on this metric.
Hotai Finance Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -2.5%.
The historical rank and industry rank for Hotai Finance Co's Gross Margin % or its related term are showing as below:
TPE:6592'
s Gross Margin % Range Over the Past 10 Years
Min: 43.49 Med: 61.55 Max: 66.43
Current: 60.01
During the past 10 years, the highestGross Margin % of Hotai Finance Co was 66.43%. The lowest was 43.49%. And the median was 61.55%.
TPE:6592's Gross Margin % is ranked better than 58.81% of 386
companies
in the Credit Services industry
Industry Median: 51.845
vs TPE:6592: 60.01
Hotai Finance Co had a gross margin of 58.99% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Hotai Finance Co was -2.50% per year.
Hotai Finance Co (TPE:6592) 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
Hotai Finance Co had a gross margin of 58.99% 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.
Hotai Finance Co Gross Margin % Related Terms
Hotai Finance Co Gross Margin % Historical Data
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The historical data trend for Hotai Finance Co'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.
For the Credit Services subindustry, Hotai Finance 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.
Hotai Finance Co Gross Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Hotai Finance Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hotai Finance 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.
Hotai Finance Co (TPE:6592) has a Gross Margin % of 58.99% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Hotai Finance Co and its competitors. This is near median its historical median of 61.55. Over the past decade, Hotai Finance Co's Gross Margin % has ranged from 43.49 to 66.43. According to the industry distribution chart, Hotai Finance Co ranks #159 out of 386 companies in the Credit Services industry, placing it in the top 41.2%.
Is Hotai Finance Co's Gross Margin % too high?
Hotai Finance Co's current Gross Margin % of 58.99% is near median its 10-year median of 61.55. Over the past 10 years, this metric has ranged from a low of 43.49 to a high of 66.43. The Credit Services industry median Gross Margin % is 51.85. Hotai Finance Co's value of 58.99% is 13.8% above this industry median. Based on the distribution chart, Hotai Finance Co ranks #159 out of 386 companies in the Credit Services industry, which is above the industry midpoint. Overall, Hotai Finance Co has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hotai Finance Co's Gross Margin % compare to V and MA?
According to the Credit Services industry distribution chart, Hotai Finance Co ranks #159 out of 386 companies for Gross Margin %. This puts Hotai Finance Co in the upper half of its industry. The industry median Gross Margin % is 51.85. Hotai Finance Co's value of 58.99% is 13.8% above this benchmark. Historically, Hotai Finance Co's own Gross Margin % has ranged from 43.49 to 66.43 over the past decade. While the company's 10-year median is 61.55 vs. the industry median of 51.85, Hotai Finance 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 Credit Services company?
The median Gross Margin % among Credit Services companies is 51.85, based on 386 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. Hotai Finance Co's current Gross Margin % of 58.99% is 13.8% 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 Hotai Finance Co and its competitors. For the Credit Services industry, the median Gross Margin % is 51.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hotai Finance Co's current Gross Margin % is 58.99%, which is near median its own 10-year median of 61.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hotai Finance Co stock overvalued right now?
Based on GuruFocus' analysis, Hotai Finance Co (TPE:6592) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$81.32, compared to a current price of NT$61.30 — trading 24.6% below its estimated fair value. The current Gross Margin % is 58.99%, which is near median its 10-year median of 61.55 and 13.8% above the Credit Services industry median of 51.85. Hotai Finance Co's overall GF Score™ is 86/100 with 7 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 Hotai Finance Co (TPE:6592), the current Gross Margin % is 58.99% 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 Hotai Finance Co (TPE:6592) Overvalued in 2026?
Based on GuruFocus' analysis, Hotai Finance Co stock appears to be undervalued.
The current stock price of NT$61.30 is trading 24.6% below its estimated GF Value™ of NT$81.32.
GuruFocus considers Hotai Finance Co to be Modestly Undervalued.
Key valuation signals for TPE:6592:
Gross Margin %: 58.99% (near median its 10-year median of 61.55)
GF Value™: NT$81.32 vs. price of NT$61.30 (24.6% below fair value)
Industry Position: 13.8% above the Credit Services median (#159 of 386)
No single metric tells the full story. See the TPE:6592 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hotai Finance Co Ltd is a Taiwan-based full-service financing company. It is engaged in the installment sales and leases of vehicles and equipment. The company offers products and services such as an Installment loan for a new car, used car, motorcycle & scooter, and others. The company's geographical segment consists of Taiwan and China. The company generates the majority of its revenue from Taiwan.
86GF 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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