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Ability Opto-Electronics Technology Co (ROCO:3362) 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
Ability Opto-Electronics Technology Co had a gross margin of 8.32% for the quarter that ended in Jun. 2026 => 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.
Ability Opto-Electronics Technology Co Gross Margin % Related Terms
Ability Opto-Electronics Technology Co Gross Margin % Historical Data
* 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.
Ability Opto-Electronics Technology Co Gross Margin % Chart
Ability Opto-Electronics Technology Co Annual Data
ROCO:3362 vs APH, GLW, TEL: Gross Margin % Comparison
For the Electronic Components subindustry, Ability Opto-Electronics 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.
Ability Opto-Electronics Technology Co Gross Margin % vs Hardware Industry
* 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.
Ability Opto-Electronics Technology Co (ROCO:3362) has a Gross Margin % of 8.32% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Ability Opto-Electronics Technology Co and its competitors. This is 66% below median its historical median of 24.69. Over the past decade, Ability Opto-Electronics Technology Co's Gross Margin % has ranged from 13.75 to 32.40. According to the industry distribution chart, Ability Opto-Electronics Technology Co ranks #1895 out of 2457 companies in the Hardware industry, placing it in the top 77.1%.
Is Ability Opto-Electronics Technology Co's Gross Margin % too high?
Ability Opto-Electronics Technology Co's current Gross Margin % of 8.32% is 66% below median its 10-year median of 24.69. Over the past 10 years, this metric has ranged from a low of 13.75 to a high of 32.40. The Hardware industry median Gross Margin % is 24.67. Ability Opto-Electronics Technology Co's value of 8.32% is 66.3% below this industry median. Based on the distribution chart, Ability Opto-Electronics Technology Co ranks #1895 out of 2457 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Ability Opto-Electronics Technology Co has a GF Score™ of 64/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ability Opto-Electronics Technology Co's Gross Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Ability Opto-Electronics Technology Co ranks #1895 out of 2457 companies for Gross Margin %. This places Ability Opto-Electronics Technology Co in the lower half of its industry. The industry median Gross Margin % is 24.67. Ability Opto-Electronics Technology Co's value of 8.32% is 66.3% below this benchmark. Historically, Ability Opto-Electronics Technology Co's own Gross Margin % has ranged from 13.75 to 32.40 over the past decade. While the company's 10-year median is 24.69 vs. the industry median of 24.67, Ability Opto-Electronics 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 a Hardware company?
The median Gross Margin % among Hardware companies is 24.67, based on 2,457 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. Ability Opto-Electronics Technology Co's current Gross Margin % of 8.32% is 66.3% 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 Ability Opto-Electronics Technology Co and its competitors. For the Hardware industry, the median Gross Margin % is 24.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ability Opto-Electronics Technology Co's current Gross Margin % is 8.32%, which is 66% below median its own 10-year median of 24.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ability Opto-Electronics Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Ability Opto-Electronics Technology Co (ROCO:3362) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$182.80, compared to a current price of NT$202.00 — trading 10.5% above its estimated fair value. The current Gross Margin % is 8.32%, which is 66% below median its 10-year median of 24.69 and 66.3% below the Hardware industry median of 24.67. Ability Opto-Electronics Technology Co's overall GF Score™ is 64/100 with 9 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 Ability Opto-Electronics Technology Co (ROCO:3362), the current Gross Margin % is 8.32% as of Jun. 2026. 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 Ability Opto-Electronics Technology Co (ROCO:3362) Overvalued in 2026?
Based on GuruFocus' analysis, Ability Opto-Electronics Technology Co stock appears to be overvalued.
The current stock price of NT$202.00 is trading 10.5% above its estimated GF Value™ of NT$182.80.
GuruFocus considers Ability Opto-Electronics Technology Co to be Modestly Overvalued.
Key valuation signals for ROCO:3362:
Gross Margin %: 8.32% (66% below median its 10-year median of 24.69)
GF Value™: NT$182.80 vs. price of NT$202.00 (10.5% above fair value)
Industry Position: 66.3% below the Hardware median (#1895 of 2457)
No single metric tells the full story. See the ROCO:3362 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ability Opto-Electronics Technology Co Ltd is engaged in the research & development, and manufacturing of professional optical lenses. The company designs and manufactures lenses for scanners, projectors, digital cameras, multi-function printers, mobile phones, digital video recorders, multi-function printers, cell phone cameras, laptops, tablets, IP cameras, monitors, automotive lenses, and others. The reportable segments of the company are; the Optical segment which derives key revenue, and the Electronic components segment. Geographically, it derives maximum revenue from Mainland China and the rest from Taiwan, and other countries.
64GF Score
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