Compal ElectronicsLUX:COMEL 78 Gross Margin % is 5.82% as of Dec. 2025, which is 58% above its 10-year median of 3.68. GuruFocus rates LUX:COMEL with a GF Score™ of 78/100 and a GF Value™ of $4.62. The stock has 4 warning signs investors should review. Among 2,454 Hardware companies, Compal Electronics ranks worse than 92.62% on this metric.
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
Compal Electronics had a gross margin of 5.82% 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.
Compal Electronics Gross Margin % Related Terms
Compal Electronics Gross Margin % Historical Data
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The historical data trend for Compal Electronics'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.
LUX:COMEL vs SNDK, DELL, STX: Gross Margin % Comparison
For the Computer Hardware subindustry, Compal Electronics'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.
Compal Electronics Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Compal Electronics's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Compal Electronics'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.
Compal Electronics (LUX:COMEL) has a Gross Margin % of 5.82% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Compal Electronics and its competitors. This is 58% above median its historical median of 3.68. Over the past decade, Compal Electronics' Gross Margin % has ranged from 3.16 to 5.64. According to the industry distribution chart, Compal Electronics ranks #2273 out of 2454 companies in the Hardware industry, placing it in the top 92.6%.
Is Compal Electronics' Gross Margin % too high?
Compal Electronics' current Gross Margin % of 5.82% is 58% above median its 10-year median of 3.68. Over the past 10 years, this metric has ranged from a low of 3.16 to a high of 5.64. The Hardware industry median Gross Margin % is 24.57. Compal Electronics' value of 5.82% is 76.3% below this industry median. Based on the distribution chart, Compal Electronics ranks #2273 out of 2454 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Compal Electronics has a GF Score™ of 78/100, reflecting its overall financial health beyond just this single metric.
How does Compal Electronics' Gross Margin % compare to SNDK and DELL?
According to the Hardware industry distribution chart, Compal Electronics ranks #2273 out of 2454 companies for Gross Margin %. This places Compal Electronics in the lower half of its industry. The industry median Gross Margin % is 24.57. Compal Electronics' value of 5.82% is 76.3% below this benchmark. Historically, Compal Electronics' own Gross Margin % has ranged from 3.16 to 5.64 over the past decade. While the company's 10-year median is 3.68 vs. the industry median of 24.57, Compal Electronics 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 24.57, based on 2,454 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. Compal Electronics's current Gross Margin % of 5.82% is 76.3% 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 Compal Electronics and its competitors. For the Hardware industry, the median Gross Margin % is 24.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Compal Electronics's current Gross Margin % is 5.82%, which is 58% above median its own 10-year median of 3.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Compal Electronics stock overvalued right now?
Compal Electronics (LUX:COMEL) has a current Gross Margin % of 5.82%. The stock's GF Value™ is $4.62, compared to a current price of $5.45 — trading 18% above its estimated fair value. The current Gross Margin % is 5.82%, which is 58% above median its 10-year median of 3.68 and 76.3% below the Hardware industry median of 24.57. Compal Electronics' overall GF Score™ is 78/100 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 Compal Electronics (LUX:COMEL), the current Gross Margin % is 5.82% 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 Compal Electronics (LUX:COMEL) Overvalued in 2026?
Based on GuruFocus' analysis, Compal Electronics stock appears to be overvalued.
The current stock price of $5.45 is trading 18% above its estimated GF Value™ of $4.62.
Key valuation signals for LUX:COMEL:
Gross Margin %: 5.82% (58% above median its 10-year median of 3.68)
GF Value™: $4.62 vs. price of $5.45 (18% above fair value)
Industry Position: 76.3% below the Hardware median (#2273 of 2454)
No single metric tells the full story. See the LUX:COMEL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Compal Electronics Inc is a Taiwan-based original design manufacturer that produces notebook computers, monitors, and televisions for equipment manufacturers. The firm's operations are organized in two reportable segment Information technology products and Strategically Integrated product segment. The majority of the firm's revenue is generated from the United States, with the rest coming from China, Netherlands, Japan, United Kingdom, India, Germany, and Others.
78GF Score
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