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RAC Electric Vehicles (ROCO:2237) 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
RAC Electric Vehicles had a gross margin of 19.59% 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.
RAC Electric Vehicles Gross Margin % Related Terms
RAC Electric Vehicles Gross Margin % Historical Data
* Premium members only.
The historical data trend for RAC Electric Vehicles'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.
ROCO:2237 vs TSLA, GM, F: Gross Margin % Comparison
For the Auto Manufacturers subindustry, RAC Electric Vehicles'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.
RAC Electric Vehicles Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, RAC Electric Vehicles's Gross Margin % distribution charts can be found below:
* The bar in red indicates where RAC Electric Vehicles'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.
RAC Electric Vehicles (ROCO:2237) has a Gross Margin % of 19.59% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on RAC Electric Vehicles and its competitors. According to the industry distribution chart, RAC Electric Vehicles ranks #653 out of 1309 companies in the Vehicles & Parts industry, placing it in the top 49.9%.
Is RAC Electric Vehicles' Gross Margin % too high?
RAC Electric Vehicles' current Gross Margin % is 19.59%. The Vehicles & Parts industry median Gross Margin % is 19.83. RAC Electric Vehicles' value of 19.59% is 1.2% below this industry median. Based on the distribution chart, RAC Electric Vehicles ranks #653 out of 1309 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, RAC Electric Vehicles has a GF Score™ of 54/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does RAC Electric Vehicles' Gross Margin % compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, RAC Electric Vehicles ranks #653 out of 1309 companies for Gross Margin %. This puts RAC Electric Vehicles in the upper half of its industry. The industry median Gross Margin % is 19.83. RAC Electric Vehicles' value of 19.59% is 1.2% below this benchmark. 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 Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.83, based on 1,309 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. RAC Electric Vehicles's current Gross Margin % of 19.59% is 1.2% 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 RAC Electric Vehicles and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. RAC Electric Vehicles's current Gross Margin % is 19.59%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is RAC Electric Vehicles stock overvalued right now?
Based on GuruFocus' analysis, RAC Electric Vehicles (ROCO:2237) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$39.79, compared to a current price of NT$32.50 — trading 18.3% below its estimated fair value. The current Gross Margin % is 19.59% and 1.2% below the Vehicles & Parts industry median of 19.83. RAC Electric Vehicles' overall GF Score™ is 54/100 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 RAC Electric Vehicles (ROCO:2237), the current Gross Margin % is 19.59% 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 RAC Electric Vehicles (ROCO:2237) Overvalued in 2026?
Based on GuruFocus' analysis, RAC Electric Vehicles stock appears to be undervalued.
The current stock price of NT$32.50 is trading 18.3% below its estimated GF Value™ of NT$39.79.
GuruFocus considers RAC Electric Vehicles to be Modestly Undervalued.
Key valuation signals for ROCO:2237:
Gross Margin %: 19.59%
GF Value™: NT$39.79 vs. price of NT$32.50 (18.3% below fair value)
Industry Position: 1.2% below the Vehicles & Parts median (#653 of 1309)
No single metric tells the full story. See the ROCO:2237 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
RAC Electric Vehicles Inc is a Taiwan-licensed car manufacturer, to develop an all-electric low-floor city bus. The comapny's main businesses include battery manufacturing, battery wholesale, manufacturing of automotive and parts, and the retail of auto and motorcycle parts and accessories.
54GF 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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