Forest Water Environmental Eng'g Co (TPE:8473) 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
Forest Water Environmental Eng'g Co had a gross margin of 22.65% 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.
Forest Water Environmental Eng'g Co Gross Margin % Related Terms
Forest Water Environmental Eng'g 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.
Forest Water Environmental Eng'g Co Gross Margin % Chart
TPE:8473 vs WM, RSG, WCN: Gross Margin % Comparison
For the Waste Management subindustry, Forest Water Environmental Eng'g 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.
Forest Water Environmental Eng'g Co Gross Margin % vs Waste Management Industry
For the Waste Management industry and Industrials sector, Forest Water Environmental Eng'g Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Forest Water Environmental Eng'g 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.
Forest Water Environmental Eng'g Co (TPE:8473) has a Gross Margin % of 22.65% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Forest Water Environmental Eng'g Co and its competitors. This is near median its historical median of 22.10. Over the past decade, Forest Water Environmental Eng'g Co's Gross Margin % has ranged from 6.79 to 38.87. According to the industry distribution chart, Forest Water Environmental Eng'g Co ranks #136 out of 235 companies in the Waste Management industry, placing it in the top 57.9%.
Is Forest Water Environmental Eng'g Co's Gross Margin % too high?
Forest Water Environmental Eng'g Co's current Gross Margin % of 22.65% is near median its 10-year median of 22.10. Over the past 10 years, this metric has ranged from a low of 6.79 to a high of 38.87. The Waste Management industry median Gross Margin % is 27.20. Forest Water Environmental Eng'g Co's value of 22.65% is 16.7% below this industry median. Based on the distribution chart, Forest Water Environmental Eng'g Co ranks #136 out of 235 companies in the Waste Management industry, which is below the industry midpoint. Overall, Forest Water Environmental Eng'g Co has a GF Score™ of 80/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Forest Water Environmental Eng'g Co's Gross Margin % compare to WM and RSG?
According to the Waste Management industry distribution chart, Forest Water Environmental Eng'g Co ranks #136 out of 235 companies for Gross Margin %. This places Forest Water Environmental Eng'g Co in the lower half of its industry. The industry median Gross Margin % is 27.20. Forest Water Environmental Eng'g Co's value of 22.65% is 16.7% below this benchmark. Historically, Forest Water Environmental Eng'g Co's own Gross Margin % has ranged from 6.79 to 38.87 over the past decade. While the company's 10-year median is 22.10 vs. the industry median of 27.20, Forest Water Environmental Eng'g 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 Waste Management company?
The median Gross Margin % among Waste Management companies is 27.20, based on 235 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. Forest Water Environmental Eng'g Co's current Gross Margin % of 22.65% is 16.7% 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 Forest Water Environmental Eng'g Co and its competitors. For the Waste Management industry, the median Gross Margin % is 27.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Forest Water Environmental Eng'g Co's current Gross Margin % is 22.65%, which is near median its own 10-year median of 22.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Forest Water Environmental Eng'g Co stock overvalued right now?
Based on GuruFocus' analysis, Forest Water Environmental Eng'g Co (TPE:8473) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$41.93, compared to a current price of NT$48.40 — trading 15.4% above its estimated fair value. The current Gross Margin % is 22.65%, which is near median its 10-year median of 22.10 and 16.7% below the Waste Management industry median of 27.20. Forest Water Environmental Eng'g Co's overall GF Score™ is 80/100 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 Forest Water Environmental Eng'g Co (TPE:8473), the current Gross Margin % is 22.65% 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 Forest Water Environmental Eng'g Co (TPE:8473) Overvalued in 2026?
Based on GuruFocus' analysis, Forest Water Environmental Eng'g Co stock appears to be overvalued.
The current stock price of NT$48.40 is trading 15.4% above its estimated GF Value™ of NT$41.93.
GuruFocus considers Forest Water Environmental Eng'g Co to be Modestly Overvalued.
Key valuation signals for TPE:8473:
Gross Margin %: 22.65% (near median its 10-year median of 22.10)
GF Value™: NT$41.93 vs. price of NT$48.40 (15.4% above fair value)
Industry Position: 16.7% below the Waste Management median (#136 of 235)
No single metric tells the full story. See the TPE:8473 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Forest Water Environmental Eng'g Co Business Description
Forest Water Environmental Eng'g Co Ltd is engaged includes engineering projects for environmental protection, sewage treatment, waste treatment and recycling, and the recycling and decomposition of compostable food waste. It also provides the construction of a water purification plant, the construction of a sewage treatment plant in the scientific industrial park, and the construction of a sewage treatment plant.
80GF Score
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