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Hep Tech CoROCO:3609 +0.18%52 Gross Margin % is 8.05% as of Dec. 2025, which is 70% below its 10-year median of 26.80. GuruFocus rates ROCO:3609 with a GF Score™ of 52/100 and a GF Value™ of NT$45.72 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 2,455 Hardware companies, Hep Tech Co ranks worse than 82.2% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Hep Tech Co's Gross Profit for the
three
months ended in Dec. 2025 was NT$22.9 Mil. Hep Tech Co's Revenue for the
three
months ended in Dec. 2025 was NT$284.9 Mil. Therefore, Hep Tech Co's Gross Margin % for the quarter that ended in Dec. 2025 was 8.05%.
Warning Sign:
Hep Tech Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -16.2%.
The historical rank and industry rank for Hep Tech Co's Gross Margin % or its related term are showing as below:
ROCO:3609'
s Gross Margin % Range Over the Past 10 Years
Min: 10.83 Med: 26.8 Max: 34.59
Current: 11.09
During the past 13 years, the highestGross Margin % of Hep Tech Co was 34.59%. The lowest was 10.83%. And the median was 26.80%.
ROCO:3609's Gross Margin % is ranked worse than 82.2% of 2455
companies
in the Hardware industry
Industry Median: 24.5
vs ROCO:3609: 11.09
Hep Tech Co had a gross margin of 8.05% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Hep Tech Co was -16.20% per year.
Hep Tech Co (ROCO:3609) 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
Hep Tech Co had a gross margin of 8.05% 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.
Hep Tech Co Gross Margin % Related Terms
Hep Tech Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Hep Tech 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.
For the Electronic Components subindustry, Hep Tech 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.
Hep Tech Co Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Hep Tech Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hep Tech 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.
Hep Tech Co (ROCO:3609) has a Gross Margin % of 8.05% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Hep Tech Co and its competitors. This is 70% below median its historical median of 26.80. Over the past decade, Hep Tech Co's Gross Margin % has ranged from 10.83 to 34.59. According to the industry distribution chart, Hep Tech Co ranks #2018 out of 2455 companies in the Hardware industry, placing it in the top 82.2%.
Is Hep Tech Co's Gross Margin % too high?
Hep Tech Co's current Gross Margin % of 8.05% is 70% below median its 10-year median of 26.80. Over the past 10 years, this metric has ranged from a low of 10.83 to a high of 34.59. The Hardware industry median Gross Margin % is 24.50. Hep Tech Co's value of 8.05% is 67.1% below this industry median. Based on the distribution chart, Hep Tech Co ranks #2018 out of 2455 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Hep Tech Co has a GF Score™ of 52/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Hep Tech Co's Gross Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Hep Tech Co ranks #2018 out of 2455 companies for Gross Margin %. This places Hep Tech Co in the lower half of its industry. The industry median Gross Margin % is 24.50. Hep Tech Co's value of 8.05% is 67.1% below this benchmark. Historically, Hep Tech Co's own Gross Margin % has ranged from 10.83 to 34.59 over the past decade. While the company's 10-year median is 26.80 vs. the industry median of 24.50, Hep Tech 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 24.50, based on 2,455 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. Hep Tech Co's current Gross Margin % of 8.05% is 67.1% 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 Hep Tech Co and its competitors. For the Hardware industry, the median Gross Margin % is 24.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hep Tech Co's current Gross Margin % is 8.05%, which is 70% below median its own 10-year median of 26.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hep Tech Co stock overvalued right now?
Based on GuruFocus' analysis, Hep Tech Co (ROCO:3609) is currently considered Possible Value Trap. The stock's GF Value™ is NT$45.72, compared to a current price of NT$27.70 — trading 39.4% below its estimated fair value. The current Gross Margin % is 8.05%, which is 70% below median its 10-year median of 26.80 and 67.1% below the Hardware industry median of 24.50. Hep Tech Co's overall GF Score™ is 52/100 with 5 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 Hep Tech Co (ROCO:3609), the current Gross Margin % is 8.05% 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 Hep Tech Co (ROCO:3609) Overvalued in 2026?
Based on GuruFocus' analysis, Hep Tech Co stock appears to be undervalued.
The current stock price of NT$27.70 is trading 39.4% below its estimated GF Value™ of NT$45.72.
GuruFocus considers Hep Tech Co to be Possible Value Trap.
Key valuation signals for ROCO:3609:
Gross Margin %: 8.05% (70% below median its 10-year median of 26.80)
GF Value™: NT$45.72 vs. price of NT$27.70 (39.4% below fair value)
Industry Position: 67.1% below the Hardware median (#2018 of 2455)
No single metric tells the full story. See the ROCO:3609 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hep Tech Co Ltd manufactures electronic lighting control gears for industrial and commercial purposes. Its products include LED driver, fluorescent ECG, emergency lighting units, electronic transformers, and other products.
52GF Score
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