Thai Rayon PCL had a gross margin of 1.62% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Thai Rayon PCL was 0.00% per year.
Thai Rayon PCL (OTCPK:TRAYF) 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
Thai Rayon PCL had a gross margin of 1.62% for the quarter that ended in Mar. 2026 => 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.
Thai Rayon PCL Gross Margin % Related Terms
Thai Rayon PCL Gross Margin % Historical Data
* Premium members only.
The historical data trend for Thai Rayon PCL'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.
Thai Rayon PCL Gross Margin % Competitor Comparison
For the Textile Manufacturing subindustry, Thai Rayon PCL'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.
Thai Rayon PCL Gross Margin % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Thai Rayon PCL's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Thai Rayon PCL'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.
Thai Rayon PCL (TRAYF) has a Gross Margin % of 1.62% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Thai Rayon PCL and its competitors. This is 76% below median its historical median of 6.78.
Is Thai Rayon PCL's Gross Margin % too high?
Thai Rayon PCL's current Gross Margin % of 1.62% is 76% below median its 10-year median of 6.78. The Manufacturing - Apparel & Accessories industry median Gross Margin % is 28.34. Thai Rayon PCL's value of 1.62% is 94.3% below this industry median. Overall, Thai Rayon PCL has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Thai Rayon PCL's Gross Margin % compare to competitors?
Thai Rayon PCL's Gross Margin % of 1.62% can be compared against companies in the Manufacturing - Apparel & Accessories industry. The industry median Gross Margin % is 28.34. Thai Rayon PCL's value of 1.62% is 94.3% below this benchmark. While the company's 10-year median is 6.78 vs. the industry median of 28.34, Thai Rayon PCL 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 Manufacturing - Apparel & Accessories company?
The median Gross Margin % among Manufacturing - Apparel & Accessories companies is 28.34, based on 1,027 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. Thai Rayon PCL's current Gross Margin % of 1.62% is 94.3% 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 Thai Rayon PCL and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Gross Margin % is 28.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Thai Rayon PCL's current Gross Margin % is 1.62%, which is 76% below median its own 10-year median of 6.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Thai Rayon PCL stock overvalued right now?
Thai Rayon PCL (TRAYF) has a current Gross Margin % of 1.62%. The stock's GF Value™ is $2.77, compared to a current price of $1.70 — trading 38.6% below its estimated fair value. The current Gross Margin % is 1.62%, which is 76% below median its 10-year median of 6.78 and 94.3% below the Manufacturing - Apparel & Accessories industry median of 28.34. Thai Rayon PCL's overall GF Score™ is 12/100 with 5 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 Thai Rayon PCL (TRAYF), the current Gross Margin % is 1.62% as of Mar. 2026. 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 Thai Rayon PCL (TRAYF) Overvalued in 2026?
Based on GuruFocus' analysis, Thai Rayon PCL stock appears to be undervalued.
The current stock price of $1.70 is trading 38.6% below its estimated GF Value™ of $2.77.
Key valuation signals for TRAYF:
Gross Margin %: 1.62% (76% below median its 10-year median of 6.78)
GF Value™: $2.77 vs. price of $1.70 (38.6% below fair value)
Industry Position: 94.3% below the Manufacturing - Apparel & Accessories median
No single metric tells the full story. See the TRAYF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Thai Rayon PCL is a company based in Thailand that mainly manufactures viscose rayon staple fiber and anhydrous sodium sulphate for sale in domestic and export markets. The company also produces anhydrous sodium sulphate as a by-product, which is widely used in Thailand by detergent, pulp, glass, leather, and textile industries. Thai Rayon has made investments in backward and forward integration projects in Thailand, Indonesia, Laos, China, and Canada, as well as various diversification projects in Thailand and overseas. The company's operations focus on a single industry segment, which is the manufacturing and distribution of viscose rayon staple fiber and by-products for both domestic and export markets.
12GF Score
Get the complete analysis for TRAYF
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TRAYF has been successfully added to your 
