Hong Wei Electrical Industry CoROCO:4565 89 Gross Margin % is 45.04% as of Dec. 2025, which is 39% above its 10-year median of 32.37. GuruFocus rates ROCO:4565 with a GF Score™ of 89/100 and a GF Value™ of NT$102.85 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 2,999 Industrial Products companies, Hong Wei Electrical Industry Co ranks better than 84.26% on this metric.
ROCO:4565's Gross Margin % is ranked better than 84.26% of 2999
companies
in the Industrial Products industry
Industry Median: 26.85
vs ROCO:4565: 44.88
Hong Wei Electrical Industry Co had a gross margin of 45.04% for the quarter that ended in Dec. 2025 => Durable competitive advantage
Hong Wei Electrical Industry Co (ROCO:4565) 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
Hong Wei Electrical Industry Co had a gross margin of 45.04% for the quarter that ended in Dec. 2025 => Durable 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.
Hong Wei Electrical Industry Co Gross Margin % Related Terms
Hong Wei Electrical Industry 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.
Hong Wei Electrical Industry Co Gross Margin % Chart
ROCO:4565 vs GEV, ETN, PH: Gross Margin % Comparison
For the Specialty Industrial Machinery subindustry, Hong Wei Electrical Industry 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.
Hong Wei Electrical Industry Co Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Hong Wei Electrical Industry Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hong Wei Electrical Industry 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.
Hong Wei Electrical Industry Co (ROCO:4565) has a Gross Margin % of 45.04% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Hong Wei Electrical Industry Co and its competitors. This is 39% above median its historical median of 32.37. Over the past decade, Hong Wei Electrical Industry Co's Gross Margin % has ranged from 27.88 to 44.88. According to the industry distribution chart, Hong Wei Electrical Industry Co ranks #472 out of 2999 companies in the Industrial Products industry, placing it in the top 15.7%.
Is Hong Wei Electrical Industry Co's Gross Margin % too high?
Hong Wei Electrical Industry Co's current Gross Margin % of 45.04% is 39% above median its 10-year median of 32.37. Over the past 10 years, this metric has ranged from a low of 27.88 to a high of 44.88. The Industrial Products industry median Gross Margin % is 26.85. Hong Wei Electrical Industry Co's value of 45.04% is 67.7% above this industry median. Based on the distribution chart, Hong Wei Electrical Industry Co ranks #472 out of 2999 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Hong Wei Electrical Industry Co has a GF Score™ of 89/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hong Wei Electrical Industry Co's Gross Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Hong Wei Electrical Industry Co ranks #472 out of 2999 companies for Gross Margin %. This places Hong Wei Electrical Industry Co in the top 16% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 26.85. Hong Wei Electrical Industry Co's value of 45.04% is 67.7% above this benchmark. Historically, Hong Wei Electrical Industry Co's own Gross Margin % has ranged from 27.88 to 44.88 over the past decade. While the company's 10-year median is 32.37 vs. the industry median of 26.85, Hong Wei Electrical Industry Co 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.85, based on 2,999 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. Hong Wei Electrical Industry Co's current Gross Margin % of 45.04% is 67.7% 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 Hong Wei Electrical Industry Co and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hong Wei Electrical Industry Co's current Gross Margin % is 45.04%, which is 39% above median its own 10-year median of 32.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hong Wei Electrical Industry Co stock overvalued right now?
Based on GuruFocus' analysis, Hong Wei Electrical Industry Co (ROCO:4565) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$102.85, compared to a current price of NT$127.00 — trading 23.5% above its estimated fair value. The current Gross Margin % is 45.04%, which is 39% above median its 10-year median of 32.37 and 67.7% above the Industrial Products industry median of 26.85. Hong Wei Electrical Industry Co's overall GF Score™ is 89/100 with 6 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 Hong Wei Electrical Industry Co (ROCO:4565), the current Gross Margin % is 45.04% 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 Hong Wei Electrical Industry Co (ROCO:4565) Overvalued in 2026?
Based on GuruFocus' analysis, Hong Wei Electrical Industry Co stock appears to be overvalued.
The current stock price of NT$127.00 is trading 23.5% above its estimated GF Value™ of NT$102.85.
GuruFocus considers Hong Wei Electrical Industry Co to be Modestly Overvalued.
Key valuation signals for ROCO:4565:
Gross Margin %: 45.04% (39% above median its 10-year median of 32.37)
GF Value™: NT$102.85 vs. price of NT$127.00 (23.5% above fair value)
Industry Position: 67.7% above the Industrial Products median (#472 of 2999)
No single metric tells the full story. See the ROCO:4565 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hong Wei Electrical Industry Co Business Description
Hong Wei Electrical Industry Co Ltd is a Taiwan based company involved in manufacturing vertical vehicles. Its products include Freight Elevators like 2 Panels Center Opening Door, 2 Panels Side Opening Door, 3 Panels Side Opening Door, and 4 Panels Center Opening Door; Driving system; Special Elevator, Passenger Elevator, and Automatic Conveyor.
89GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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