ABC Taiwan ElectronicsROCO:3236 -2.00%44 Gross Margin % is 26.03% as of Dec. 2025, which is 17% above its 10-year median of 22.32. GuruFocus rates ROCO:3236 with a GF Score™ of 44/100 and a GF Value™ of NT$19.81 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 2,453 Hardware companies, ABC Taiwan Electronics ranks better than 51.65% 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
ABC Taiwan Electronics had a gross margin of 26.03% 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.
ABC Taiwan Electronics Gross Margin % Related Terms
ABC Taiwan Electronics Gross Margin % Historical Data
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The historical data trend for ABC Taiwan 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.
For the Electronic Components subindustry, ABC Taiwan 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.
ABC Taiwan Electronics Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, ABC Taiwan Electronics's Gross Margin % distribution charts can be found below:
* The bar in red indicates where ABC Taiwan 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.
ABC Taiwan Electronics (ROCO:3236) has a Gross Margin % of 26.03% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on ABC Taiwan Electronics and its competitors. This is 17% above median its historical median of 22.32. Over the past decade, ABC Taiwan Electronics' Gross Margin % has ranged from 19.86 to 25.37. According to the industry distribution chart, ABC Taiwan Electronics ranks #1186 out of 2453 companies in the Hardware industry, placing it in the top 48.3%.
Is ABC Taiwan Electronics' Gross Margin % too high?
ABC Taiwan Electronics' current Gross Margin % of 26.03% is 17% above median its 10-year median of 22.32. Over the past 10 years, this metric has ranged from a low of 19.86 to a high of 25.37. The Hardware industry median Gross Margin % is 24.52. ABC Taiwan Electronics' value of 26.03% is 6.2% above this industry median. Based on the distribution chart, ABC Taiwan Electronics ranks #1186 out of 2453 companies in the Hardware industry, which is above the industry midpoint. Overall, ABC Taiwan Electronics has a GF Score™ of 44/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does ABC Taiwan Electronics' Gross Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, ABC Taiwan Electronics ranks #1186 out of 2453 companies for Gross Margin %. This puts ABC Taiwan Electronics in the upper half of its industry. The industry median Gross Margin % is 24.52. ABC Taiwan Electronics' value of 26.03% is 6.2% above this benchmark. Historically, ABC Taiwan Electronics' own Gross Margin % has ranged from 19.86 to 25.37 over the past decade. While the company's 10-year median is 22.32 vs. the industry median of 24.52, ABC Taiwan Electronics 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 Hardware company?
The median Gross Margin % among Hardware companies is 24.52, based on 2,453 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. ABC Taiwan Electronics's current Gross Margin % of 26.03% is 6.2% 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 ABC Taiwan Electronics and its competitors. For the Hardware industry, the median Gross Margin % is 24.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ABC Taiwan Electronics's current Gross Margin % is 26.03%, which is 17% above median its own 10-year median of 22.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ABC Taiwan Electronics stock overvalued right now?
Based on GuruFocus' analysis, ABC Taiwan Electronics (ROCO:3236) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$19.81, compared to a current price of NT$68.70 — trading 246.8% above its estimated fair value. The current Gross Margin % is 26.03%, which is 17% above median its 10-year median of 22.32 and 6.2% above the Hardware industry median of 24.52. ABC Taiwan Electronics' overall GF Score™ is 44/100 with 10 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 ABC Taiwan Electronics (ROCO:3236), the current Gross Margin % is 26.03% 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 ABC Taiwan Electronics (ROCO:3236) Overvalued in 2026?
Based on GuruFocus' analysis, ABC Taiwan Electronics stock appears to be overvalued.
The current stock price of NT$68.70 is trading 246.8% above its estimated GF Value™ of NT$19.81.
GuruFocus considers ABC Taiwan Electronics to be Significantly Overvalued.
Key valuation signals for ROCO:3236:
Gross Margin %: 26.03% (17% above median its 10-year median of 22.32)
GF Value™: NT$19.81 vs. price of NT$68.70 (246.8% above fair value)
Industry Position: 6.2% above the Hardware median (#1186 of 2453)
No single metric tells the full story. See the ROCO:3236 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ABC Taiwan Electronics Corp is a manufacturer of electronic components. It offers chip inductors, power inductors, filter inductive components, transformers, micro-porous ceramic (MPC) heat sinks, precision metal stamping parts, LED lighting fixtures, and other associated products used in various electronic products, communication electronic products, computer and peripheral equipment, industrial electronic equipment, etc. The Group's reportable units are Inductors and Others, out of which the Inductors business generates the maximum revenue. Geographically, it derives maximum revenue from the USA, and the rest from Germany, China, Taiwan, and other markets.
44GF Score
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