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
Chang Wah Electronmaterials had a gross margin of 18.16% 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.
Chang Wah Electronmaterials Gross Margin % Related Terms
Chang Wah Electronmaterials 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:8070 vs SNX, ARW, AVT: Gross Margin % Comparison
For the Electronics & Computer Distribution subindustry, Chang Wah Electronmaterials'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.
Chang Wah Electronmaterials Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Chang Wah Electronmaterials's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Chang Wah Electronmaterials'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.
Chang Wah Electronmaterials (TPE:8070) has a Gross Margin % of 18.16% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Chang Wah Electronmaterials and its competitors. This is near median its historical median of 16.69. Over the past decade, Chang Wah Electronmaterials' Gross Margin % has ranged from 8.81 to 23.19. According to the industry distribution chart, Chang Wah Electronmaterials ranks #1582 out of 2449 companies in the Hardware industry, placing it in the top 64.6%.
Is Chang Wah Electronmaterials' Gross Margin % too high?
Chang Wah Electronmaterials' current Gross Margin % of 18.16% is near median its 10-year median of 16.69. Over the past 10 years, this metric has ranged from a low of 8.81 to a high of 23.19. The Hardware industry median Gross Margin % is 24.50. Chang Wah Electronmaterials' value of 18.16% is 25.9% below this industry median. Based on the distribution chart, Chang Wah Electronmaterials ranks #1582 out of 2449 companies in the Hardware industry, which is below the industry midpoint. Overall, Chang Wah Electronmaterials has a GF Score™ of 79/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Chang Wah Electronmaterials' Gross Margin % compare to SNX and ARW?
According to the Hardware industry distribution chart, Chang Wah Electronmaterials ranks #1582 out of 2449 companies for Gross Margin %. This places Chang Wah Electronmaterials in the lower half of its industry. The industry median Gross Margin % is 24.50. Chang Wah Electronmaterials' value of 18.16% is 25.9% below this benchmark. Historically, Chang Wah Electronmaterials' own Gross Margin % has ranged from 8.81 to 23.19 over the past decade. While the company's 10-year median is 16.69 vs. the industry median of 24.50, Chang Wah Electronmaterials 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 Hardware company?
The median Gross Margin % among Hardware companies is 24.50, based on 2,449 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. Chang Wah Electronmaterials's current Gross Margin % of 18.16% is 25.9% 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 Chang Wah Electronmaterials and its competitors. For the Hardware industry, the median Gross Margin % is 24.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chang Wah Electronmaterials's current Gross Margin % is 18.16%, which is near median its own 10-year median of 16.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chang Wah Electronmaterials stock overvalued right now?
Based on GuruFocus' analysis, Chang Wah Electronmaterials (TPE:8070) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$43.77, compared to a current price of NT$55.20 — trading 26.1% above its estimated fair value. The current Gross Margin % is 18.16%, which is near median its 10-year median of 16.69 and 25.9% below the Hardware industry median of 24.50. Chang Wah Electronmaterials' overall GF Score™ is 79/100 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 Chang Wah Electronmaterials (TPE:8070), the current Gross Margin % is 18.16% 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 Chang Wah Electronmaterials (TPE:8070) Overvalued in 2026?
Based on GuruFocus' analysis, Chang Wah Electronmaterials stock appears to be overvalued.
The current stock price of NT$55.20 is trading 26.1% above its estimated GF Value™ of NT$43.77.
GuruFocus considers Chang Wah Electronmaterials to be Modestly Overvalued.
Key valuation signals for TPE:8070:
Gross Margin %: 18.16% (near median its 10-year median of 16.69)
GF Value™: NT$43.77 vs. price of NT$55.20 (26.1% above fair value)
Industry Position: 25.9% below the Hardware median (#1582 of 2449)
No single metric tells the full story. See the TPE:8070 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chang Wah Electronmaterials Inc trades electrical, telecommunication, and semiconductor materials and parts, and engages in import and export trading, leasing, manufacturing, and selling of electrical appliances, telecommunication equipment, and mechanical parts, retailing of synthetic resin, electronic materials, and components. The company operates in two geographical areas - Taiwan and Asia. The company's reportable segments include IC Leadframe, Substrate, EME, and Others. The majority of its revenue is generated from the EME segment.
79GF Score
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