Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Connection Technology Systems (ROCO:3672) 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
Connection Technology Systems had a gross margin of 28.80% 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.
Connection Technology Systems Gross Margin % Related Terms
Connection Technology Systems 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.
Connection Technology Systems Gross Margin % Chart
ROCO:3672 vs CSCO, CIEN, MSI: Gross Margin % Comparison
For the Communication Equipment subindustry, Connection Technology Systems'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.
Connection Technology Systems Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Connection Technology Systems's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Connection Technology Systems'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.
Connection Technology Systems (ROCO:3672) has a Gross Margin % of 28.80% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Connection Technology Systems and its competitors. This is 14% below median its historical median of 33.53. Over the past decade, Connection Technology Systems' Gross Margin % has ranged from 29.40 to 38.47. According to the industry distribution chart, Connection Technology Systems ranks #792 out of 2455 companies in the Hardware industry, placing it in the top 32.3%.
Is Connection Technology Systems' Gross Margin % too high?
Connection Technology Systems' current Gross Margin % of 28.80% is 14% below median its 10-year median of 33.53. Over the past 10 years, this metric has ranged from a low of 29.40 to a high of 38.47. The Hardware industry median Gross Margin % is 24.52. Connection Technology Systems' value of 28.80% is 17.5% above this industry median. Based on the distribution chart, Connection Technology Systems ranks #792 out of 2455 companies in the Hardware industry, which is above the industry midpoint. Overall, Connection Technology Systems has a GF Score™ of 53/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Connection Technology Systems' Gross Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Connection Technology Systems ranks #792 out of 2455 companies for Gross Margin %. This puts Connection Technology Systems in the upper half of its industry. The industry median Gross Margin % is 24.52. Connection Technology Systems' value of 28.80% is 17.5% above this benchmark. Historically, Connection Technology Systems' own Gross Margin % has ranged from 29.40 to 38.47 over the past decade. While the company's 10-year median is 33.53 vs. the industry median of 24.52, Connection Technology Systems 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 2,455 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. Connection Technology Systems's current Gross Margin % of 28.80% is 17.5% 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 Connection Technology Systems 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. Connection Technology Systems's current Gross Margin % is 28.80%, which is 14% below median its own 10-year median of 33.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Connection Technology Systems stock overvalued right now?
Based on GuruFocus' analysis, Connection Technology Systems (ROCO:3672) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$10.66, compared to a current price of NT$12.65 — trading 18.7% above its estimated fair value. The current Gross Margin % is 28.80%, which is 14% below median its 10-year median of 33.53 and 17.5% above the Hardware industry median of 24.52. Connection Technology Systems' overall GF Score™ is 53/100 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 Connection Technology Systems (ROCO:3672), the current Gross Margin % is 28.80% 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 Connection Technology Systems (ROCO:3672) Overvalued in 2026?
Based on GuruFocus' analysis, Connection Technology Systems stock appears to be overvalued.
The current stock price of NT$12.65 is trading 18.7% above its estimated GF Value™ of NT$10.66.
GuruFocus considers Connection Technology Systems to be Modestly Overvalued.
Key valuation signals for ROCO:3672:
Gross Margin %: 28.80% (14% below median its 10-year median of 33.53)
GF Value™: NT$10.66 vs. price of NT$12.65 (18.7% above fair value)
Industry Position: 17.5% above the Hardware median (#792 of 2455)
No single metric tells the full story. See the ROCO:3672 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Connection Technology Systems Business Description
Connection Technology Systems Inc. is engaged in providing fiber optic communication products and services in Taiwan. Its main products include Fiber Switch Product, Fiber Gateway Product, PoE Product, Media Converter Product.
53GF Score
Get the complete analysis for ROCO:3672
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ROCO:3672 has been successfully added to your 
