OToBrite ElectronicROCO:2256 56 Gross Margin % is 37.19% as of Dec. 2025, which is 50% above its 10-year median of 24.78. GuruFocus rates ROCO:2256 with a GF Score™ of 56/100 and a GF Value™ of NT$21.82 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,307 Vehicles & Parts companies, OToBrite Electronic ranks better than 81.03% 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
OToBrite Electronic had a gross margin of 37.19% 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.
OToBrite Electronic Gross Margin % Related Terms
OToBrite Electronic Gross Margin % Historical Data
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The historical data trend for OToBrite Electronic'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.
For the Auto Parts subindustry, OToBrite Electronic'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.
OToBrite Electronic Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, OToBrite Electronic's Gross Margin % distribution charts can be found below:
* The bar in red indicates where OToBrite Electronic'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.
OToBrite Electronic (ROCO:2256) has a Gross Margin % of 37.19% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on OToBrite Electronic and its competitors. This is 50% above median its historical median of 24.78. According to the industry distribution chart, OToBrite Electronic ranks #248 out of 1307 companies in the Vehicles & Parts industry, placing it in the top 19%.
Is OToBrite Electronic's Gross Margin % too high?
OToBrite Electronic's current Gross Margin % of 37.19% is 50% above median its 10-year median of 24.78. The Vehicles & Parts industry median Gross Margin % is 19.83. OToBrite Electronic's value of 37.19% is 87.5% above this industry median. Based on the distribution chart, OToBrite Electronic ranks #248 out of 1307 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, OToBrite Electronic has a GF Score™ of 56/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does OToBrite Electronic's Gross Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, OToBrite Electronic ranks #248 out of 1307 companies for Gross Margin %. This places OToBrite Electronic in the top 19% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 19.83. OToBrite Electronic's value of 37.19% is 87.5% above this benchmark. While the company's 10-year median is 24.78 vs. the industry median of 19.83, OToBrite Electronic 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 Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.83, based on 1,307 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. OToBrite Electronic's current Gross Margin % of 37.19% is 87.5% 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 OToBrite Electronic 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. OToBrite Electronic's current Gross Margin % is 37.19%, which is 50% above median its own 10-year median of 24.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is OToBrite Electronic stock overvalued right now?
Based on GuruFocus' analysis, OToBrite Electronic (ROCO:2256) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$21.82, compared to a current price of NT$73.70 — trading 237.8% above its estimated fair value. The current Gross Margin % is 37.19%, which is 50% above median its 10-year median of 24.78 and 87.5% above the Vehicles & Parts industry median of 19.83. OToBrite Electronic's overall GF Score™ is 56/100 with 1 warning sign 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 OToBrite Electronic (ROCO:2256), the current Gross Margin % is 37.19% 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 OToBrite Electronic (ROCO:2256) Overvalued in 2026?
Based on GuruFocus' analysis, OToBrite Electronic stock appears to be overvalued.
The current stock price of NT$73.70 is trading 237.8% above its estimated GF Value™ of NT$21.82.
GuruFocus considers OToBrite Electronic to be Significantly Overvalued.
Key valuation signals for ROCO:2256:
Gross Margin %: 37.19% (50% above median its 10-year median of 24.78)
GF Value™: NT$21.82 vs. price of NT$73.70 (237.8% above fair value)
Industry Position: 87.5% above the Vehicles & Parts median (#248 of 1307)
No single metric tells the full story. See the ROCO:2256 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
OToBrite Electronic Inc is dedicated to developing driver safety system products and artificial intelligence technologies. With a vision to provide vehicle imaging systems and driver assistance systems, oToBrite strives to make driving simpler and safer and to contribute to the development of automated driving technology.
56GF Score
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