Taiwan Fu Hsing Industrial Co (TPE:9924) 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
Taiwan Fu Hsing Industrial Co had a gross margin of 21.51% 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.
Taiwan Fu Hsing Industrial Co Gross Margin % Related Terms
Taiwan Fu Hsing Industrial 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.
Taiwan Fu Hsing Industrial Co Gross Margin % Chart
TPE:9924 vs TT, JCI, CARR: Gross Margin % Comparison
For the Building Products & Equipment subindustry, Taiwan Fu Hsing Industrial 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.
Taiwan Fu Hsing Industrial Co Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Taiwan Fu Hsing Industrial Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Taiwan Fu Hsing Industrial 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.
Taiwan Fu Hsing Industrial Co (TPE:9924) has a Gross Margin % of 21.51% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Taiwan Fu Hsing Industrial Co and its competitors. This is near median its historical median of 22.37. Over the past decade, Taiwan Fu Hsing Industrial Co's Gross Margin % has ranged from 17.43 to 25.19. According to the industry distribution chart, Taiwan Fu Hsing Industrial Co ranks #823 out of 1718 companies in the Construction industry, placing it in the top 47.9%.
Is Taiwan Fu Hsing Industrial Co's Gross Margin % too high?
Taiwan Fu Hsing Industrial Co's current Gross Margin % of 21.51% is near median its 10-year median of 22.37. Over the past 10 years, this metric has ranged from a low of 17.43 to a high of 25.19. The Construction industry median Gross Margin % is 20.72. Taiwan Fu Hsing Industrial Co's value of 21.51% is 3.8% above this industry median. Based on the distribution chart, Taiwan Fu Hsing Industrial Co ranks #823 out of 1718 companies in the Construction industry, which is above the industry midpoint. Overall, Taiwan Fu Hsing Industrial Co has a GF Score™ of 82/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Taiwan Fu Hsing Industrial Co's Gross Margin % compare to TT and JCI?
According to the Construction industry distribution chart, Taiwan Fu Hsing Industrial Co ranks #823 out of 1718 companies for Gross Margin %. This puts Taiwan Fu Hsing Industrial Co in the upper half of its industry. The industry median Gross Margin % is 20.72. Taiwan Fu Hsing Industrial Co's value of 21.51% is 3.8% above this benchmark. Historically, Taiwan Fu Hsing Industrial Co's own Gross Margin % has ranged from 17.43 to 25.19 over the past decade. While the company's 10-year median is 22.37 vs. the industry median of 20.72, Taiwan Fu Hsing Industrial 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 Construction company?
The median Gross Margin % among Construction companies is 20.72, based on 1,718 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. Taiwan Fu Hsing Industrial Co's current Gross Margin % of 21.51% is 3.8% 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 Taiwan Fu Hsing Industrial Co and its competitors. For the Construction industry, the median Gross Margin % is 20.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Taiwan Fu Hsing Industrial Co's current Gross Margin % is 21.51%, which is near median its own 10-year median of 22.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Taiwan Fu Hsing Industrial Co stock overvalued right now?
Based on GuruFocus' analysis, Taiwan Fu Hsing Industrial Co (TPE:9924) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$43.71, compared to a current price of NT$39.50 — trading 9.6% below its estimated fair value. The current Gross Margin % is 21.51%, which is near median its 10-year median of 22.37 and 3.8% above the Construction industry median of 20.72. Taiwan Fu Hsing Industrial Co's overall GF Score™ is 82/100 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 Taiwan Fu Hsing Industrial Co (TPE:9924), the current Gross Margin % is 21.51% 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 Taiwan Fu Hsing Industrial Co (TPE:9924) Overvalued in 2026?
Based on GuruFocus' analysis, Taiwan Fu Hsing Industrial Co stock appears to be undervalued.
The current stock price of NT$39.50 is trading 9.6% below its estimated GF Value™ of NT$43.71.
GuruFocus considers Taiwan Fu Hsing Industrial Co to be Modestly Undervalued.
Key valuation signals for TPE:9924:
Gross Margin %: 21.51% (near median its 10-year median of 22.37)
GF Value™: NT$43.71 vs. price of NT$39.50 (9.6% below fair value)
Industry Position: 3.8% above the Construction median (#823 of 1718)
No single metric tells the full story. See the TPE:9924 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Taiwan Fu Hsing Industrial Co Business Description
Taiwan Fu Hsing Industrial Co Ltd is engaged in the manufacture and distribution of door locks and related accessories and furniture. The products of the company include commercial door locks, residential door locks, door lock parts, door closing-related products, fire door hardware, electronic door locks, flat handle locks, round handle and flat handle horn locks, auxiliary locks, interlocking locks, large handle locks, and European standard lockboxes, floor springs, and tooling. Geographically, the company generates a majority of its revenue from its customers located in the United States followed by Asia, Europe, and other regions.
82GF 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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