Kaori Heat Treatment CoTPE:8996 81 Gross Margin % is 26.85% as of Dec. 2025, which is 3% below its 10-year median of 27.63. GuruFocus rates TPE:8996 with a GF Score™ of 81/100 and a GF Value™ of NT$559.57 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 2,992 Industrial Products companies, Kaori Heat Treatment Co ranks better than 51.1% on this metric.
TPE:8996's Gross Margin % is ranked better than 51.1% of 2992
companies
in the Industrial Products industry
Industry Median: 26.82
vs TPE:8996: 27.34
Kaori Heat Treatment Co had a gross margin of 26.85% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Kaori Heat Treatment Co was 2.10% per year.
Kaori Heat Treatment Co (TPE:8996) 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
Kaori Heat Treatment Co had a gross margin of 26.85% 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.
Kaori Heat Treatment Co Gross Margin % Related Terms
Kaori Heat Treatment 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:8996 vs GEV, ETN, PH: Gross Margin % Comparison
For the Specialty Industrial Machinery subindustry, Kaori Heat Treatment 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.
Kaori Heat Treatment Co Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Kaori Heat Treatment Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Kaori Heat Treatment 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.
Kaori Heat Treatment Co (TPE:8996) has a Gross Margin % of 26.85% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Kaori Heat Treatment Co and its competitors. This is near median its historical median of 27.63. Over the past decade, Kaori Heat Treatment Co's Gross Margin % has ranged from 25.45 to 29.85. According to the industry distribution chart, Kaori Heat Treatment Co ranks #1463 out of 2992 companies in the Industrial Products industry, placing it in the top 48.9%.
Is Kaori Heat Treatment Co's Gross Margin % too high?
Kaori Heat Treatment Co's current Gross Margin % of 26.85% is near median its 10-year median of 27.63. Over the past 10 years, this metric has ranged from a low of 25.45 to a high of 29.85. The Industrial Products industry median Gross Margin % is 26.82. Kaori Heat Treatment Co's value of 26.85% is 0.1% above this industry median. Based on the distribution chart, Kaori Heat Treatment Co ranks #1463 out of 2992 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Kaori Heat Treatment Co has a GF Score™ of 81/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kaori Heat Treatment Co's Gross Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Kaori Heat Treatment Co ranks #1463 out of 2992 companies for Gross Margin %. This puts Kaori Heat Treatment Co in the upper half of its industry. The industry median Gross Margin % is 26.82. Kaori Heat Treatment Co's value of 26.85% is 0.1% above this benchmark. Historically, Kaori Heat Treatment Co's own Gross Margin % has ranged from 25.45 to 29.85 over the past decade. While the company's 10-year median is 27.63 vs. the industry median of 26.82, Kaori Heat Treatment 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.82, based on 2,992 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. Kaori Heat Treatment Co's current Gross Margin % of 26.85% is 0.1% 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 Kaori Heat Treatment Co and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kaori Heat Treatment Co's current Gross Margin % is 26.85%, which is near median its own 10-year median of 27.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kaori Heat Treatment Co stock overvalued right now?
Based on GuruFocus' analysis, Kaori Heat Treatment Co (TPE:8996) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$559.57, compared to a current price of NT$1,230.00 — trading 119.8% above its estimated fair value. The current Gross Margin % is 26.85%, which is near median its 10-year median of 27.63 and 0.1% above the Industrial Products industry median of 26.82. Kaori Heat Treatment Co's overall GF Score™ is 81/100 with 2 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 Kaori Heat Treatment Co (TPE:8996), the current Gross Margin % is 26.85% 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 Kaori Heat Treatment Co (TPE:8996) Overvalued in 2026?
Based on GuruFocus' analysis, Kaori Heat Treatment Co stock appears to be overvalued.
The current stock price of NT$1,230.00 is trading 119.8% above its estimated GF Value™ of NT$559.57.
GuruFocus considers Kaori Heat Treatment Co to be Significantly Overvalued.
Key valuation signals for TPE:8996:
Gross Margin %: 26.85% (near median its 10-year median of 27.63)
GF Value™: NT$559.57 vs. price of NT$1,230.00 (119.8% above fair value)
Industry Position: 0.1% above the Industrial Products median (#1463 of 2992)
No single metric tells the full story. See the TPE:8996 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kaori Heat Treatment Co Ltd specializes in producing mechanical hardware, processing fabricated metals, and manufacturing and developing heat exchange products or thermal products. The Group's factories are established in Zhongli, Kaohsiung, etc. Its operating activities include heat treatment processing of various mechanical hardware and fabricated metals, plate heat exchangers, thermal products, and manufacturing activities. The Group operates in a single operating segment of plate heat exchangers, power generation, and thermal energy products. It operates in Asia, America, Europe, and others. The Group generates maximum revenue from America.
81GF Score
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