Howteh Technology CoROCO:3114 -6.26%59 Gross Margin % is 10.18% as of Dec. 2025, which is 2% below its 10-year median of 10.35. GuruFocus rates ROCO:3114 with a GF Score™ of 59/100 and a GF Value™ of NT$27.61 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 154 Industrial Distribution companies, Howteh Technology Co ranks worse than 90.91% on this metric.
The historical rank and industry rank for Howteh Technology Co's Gross Margin % or its related term are showing as below:
ROCO:3114'
s Gross Margin % Range Over the Past 10 Years
Min: 9.6 Med: 10.35 Max: 12.47
Current: 9.6
During the past 13 years, the highestGross Margin % of Howteh Technology Co was 12.47%. The lowest was 9.60%. And the median was 10.35%.
ROCO:3114's Gross Margin % is ranked worse than 90.91% of 154
companies
in the Industrial Distribution industry
Industry Median: 24.385
vs ROCO:3114: 9.60
Howteh Technology Co had a gross margin of 10.18% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Howteh Technology Co was -1.00% per year.
Howteh Technology Co (ROCO:3114) 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
Howteh Technology Co had a gross margin of 10.18% 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.
Howteh Technology Co Gross Margin % Related Terms
Howteh Technology Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Howteh Technology Co'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:3114 vs GWW, FAST, FERG: Gross Margin % Comparison
For the Industrial Distribution subindustry, Howteh Technology 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.
Howteh Technology Co Gross Margin % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Howteh Technology Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Howteh Technology 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.
Howteh Technology Co (ROCO:3114) has a Gross Margin % of 10.18% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Howteh Technology Co and its competitors. This is near median its historical median of 10.35. Over the past decade, Howteh Technology Co's Gross Margin % has ranged from 9.60 to 12.47. According to the industry distribution chart, Howteh Technology Co ranks #140 out of 154 companies in the Industrial Distribution industry, placing it in the top 90.9%.
Is Howteh Technology Co's Gross Margin % too high?
Howteh Technology Co's current Gross Margin % of 10.18% is near median its 10-year median of 10.35. Over the past 10 years, this metric has ranged from a low of 9.60 to a high of 12.47. The Industrial Distribution industry median Gross Margin % is 24.39. Howteh Technology Co's value of 10.18% is 58.3% below this industry median. Based on the distribution chart, Howteh Technology Co ranks #140 out of 154 companies in the Industrial Distribution industry, which is in the bottom quartile relative to peers. Overall, Howteh Technology Co has a GF Score™ of 59/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Howteh Technology Co's Gross Margin % compare to GWW and FAST?
According to the Industrial Distribution industry distribution chart, Howteh Technology Co ranks #140 out of 154 companies for Gross Margin %. This places Howteh Technology Co in the lower half of its industry. The industry median Gross Margin % is 24.39. Howteh Technology Co's value of 10.18% is 58.3% below this benchmark. Historically, Howteh Technology Co's own Gross Margin % has ranged from 9.60 to 12.47 over the past decade. While the company's 10-year median is 10.35 vs. the industry median of 24.39, Howteh Technology Co 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 an Industrial Distribution company?
The median Gross Margin % among Industrial Distribution companies is 24.39, based on 154 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. Howteh Technology Co's current Gross Margin % of 10.18% is 58.3% 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 Howteh Technology Co and its competitors. For the Industrial Distribution industry, the median Gross Margin % is 24.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Howteh Technology Co's current Gross Margin % is 10.18%, which is near median its own 10-year median of 10.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Howteh Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Howteh Technology Co (ROCO:3114) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$27.61, compared to a current price of NT$44.90 — trading 62.6% above its estimated fair value. The current Gross Margin % is 10.18%, which is near median its 10-year median of 10.35 and 58.3% below the Industrial Distribution industry median of 24.39. Howteh Technology Co's overall GF Score™ is 59/100 with 6 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 Howteh Technology Co (ROCO:3114), the current Gross Margin % is 10.18% 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 Howteh Technology Co (ROCO:3114) Overvalued in 2026?
Based on GuruFocus' analysis, Howteh Technology Co stock appears to be overvalued.
The current stock price of NT$44.90 is trading 62.6% above its estimated GF Value™ of NT$27.61.
GuruFocus considers Howteh Technology Co to be Significantly Overvalued.
Key valuation signals for ROCO:3114:
Gross Margin %: 10.18% (near median its 10-year median of 10.35)
GF Value™: NT$27.61 vs. price of NT$44.90 (62.6% above fair value)
Industry Position: 58.3% below the Industrial Distribution median (#140 of 154)
No single metric tells the full story. See the ROCO:3114 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Howteh Technology Co Ltd is engaged mainly in trading and agency business in passive electronic components, active electronic components, integrated circuit carrier board equipment, chemicals and raw materials, semiconductors and optical equipment. Its operating segment includes Taiwan Segment responsible for the agency sales of electronic components and process equipment in Taiwan; and China and South East Asia segment responsible for the distribution of electronic components in Eastern and Southern China (including Hongkong) and Vietnam. The majority of the revenue is derived from the Taiwan segment.
59GF Score
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