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Otsuka Information Technology (ROCO:3570) 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
Otsuka Information Technology had a gross margin of 31.73% 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.
Otsuka Information Technology Gross Margin % Related Terms
Otsuka Information Technology 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.
Otsuka Information Technology Gross Margin % Chart
ROCO:3570 vs UBER, SHOP, CRM: Gross Margin % Comparison
For the Software - Application subindustry, Otsuka Information Technology'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.
Otsuka Information Technology Gross Margin % vs Software Industry
For the Software industry and Technology sector, Otsuka Information Technology's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Otsuka Information Technology'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.
Otsuka Information Technology (ROCO:3570) has a Gross Margin % of 31.73% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Otsuka Information Technology and its competitors. This is near median its historical median of 34.84. Over the past decade, Otsuka Information Technology's Gross Margin % has ranged from 28.59 to 38.99. According to the industry distribution chart, Otsuka Information Technology ranks #1756 out of 2683 companies in the Software industry, placing it in the top 65.4%.
Is Otsuka Information Technology's Gross Margin % too high?
Otsuka Information Technology's current Gross Margin % of 31.73% is near median its 10-year median of 34.84. Over the past 10 years, this metric has ranged from a low of 28.59 to a high of 38.99. The Software industry median Gross Margin % is 40.47. Otsuka Information Technology's value of 31.73% is 21.6% below this industry median. Based on the distribution chart, Otsuka Information Technology ranks #1756 out of 2683 companies in the Software industry, which is below the industry midpoint. Overall, Otsuka Information Technology has a GF Score™ of 91/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Otsuka Information Technology's Gross Margin % compare to UBER and SHOP?
According to the Software industry distribution chart, Otsuka Information Technology ranks #1756 out of 2683 companies for Gross Margin %. This places Otsuka Information Technology in the lower half of its industry. The industry median Gross Margin % is 40.47. Otsuka Information Technology's value of 31.73% is 21.6% below this benchmark. Historically, Otsuka Information Technology's own Gross Margin % has ranged from 28.59 to 38.99 over the past decade. While the company's 10-year median is 34.84 vs. the industry median of 40.47, Otsuka Information Technology 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 Software company?
The median Gross Margin % among Software companies is 40.47, based on 2,683 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. Otsuka Information Technology's current Gross Margin % of 31.73% is 21.6% 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 Otsuka Information Technology and its competitors. For the Software industry, the median Gross Margin % is 40.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Otsuka Information Technology's current Gross Margin % is 31.73%, which is near median its own 10-year median of 34.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Otsuka Information Technology stock overvalued right now?
Based on GuruFocus' analysis, Otsuka Information Technology (ROCO:3570) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$221.70, compared to a current price of NT$166.50 — trading 24.9% below its estimated fair value. The current Gross Margin % is 31.73%, which is near median its 10-year median of 34.84 and 21.6% below the Software industry median of 40.47. Otsuka Information Technology's overall GF Score™ is 91/100 with 2 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 Otsuka Information Technology (ROCO:3570), the current Gross Margin % is 31.73% 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 Otsuka Information Technology (ROCO:3570) Overvalued in 2026?
Based on GuruFocus' analysis, Otsuka Information Technology stock appears to be undervalued.
The current stock price of NT$166.50 is trading 24.9% below its estimated GF Value™ of NT$221.70.
GuruFocus considers Otsuka Information Technology to be Modestly Undervalued.
Key valuation signals for ROCO:3570:
Gross Margin %: 31.73% (near median its 10-year median of 34.84)
GF Value™: NT$221.70 vs. price of NT$166.50 (24.9% below fair value)
Industry Position: 21.6% below the Software median (#1756 of 2683)
No single metric tells the full story. See the ROCO:3570 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Otsuka Information Technology Business Description
Otsuka Information Technology Corp is engaged in designing network, trading, maintenance, import and export of hardware, software, computers, and related accessories, as well as providing measurement service for electronic components. Its products portfolio includes Digital transformation, Digital products, Digital construction, and Entertainment industry. It derives revenue from CAD, designing, valuable and multiple CAD integration and consulting services. Geographically, the company operates in two segments namely, China and Taiwan generating key revenue from Taiwan markets.
91GF Score
Get the complete analysis for ROCO:3570
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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