ROCO:4589's Gross Margin % is ranked worse than 79.71% of 2992
companies
in the Industrial Products industry
Industry Median: 26.82
vs ROCO:4589: 15.27
Motion Technology Electric & Machinery Co had a gross margin of 12.32% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
Motion Technology Electric & Machinery Co (ROCO:4589) 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
Motion Technology Electric & Machinery Co had a gross margin of 12.32% 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.
Motion Technology Electric & Machinery Co Gross Margin % Related Terms
Motion Technology Electric & Machinery 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.
Motion Technology Electric & Machinery Co Gross Margin % Chart
Motion Technology Electric & Machinery Co Annual Data
Trend
Dec21
Dec22
Dec23
Dec24
Dec25
Gross Margin %
19.32
23.20
24.40
23.69
15.27
Motion Technology Electric & Machinery Co Semi-Annual Data
For the Electrical Equipment & Parts subindustry, Motion Technology Electric & Machinery 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.
Motion Technology Electric & Machinery Co Gross Margin % vs Industrial Products 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.
Motion Technology Electric & Machinery Co (ROCO:4589) has a Gross Margin % of 12.32% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Motion Technology Electric & Machinery Co and its competitors. This is 47% below median its historical median of 23.20. Over the past decade, Motion Technology Electric & Machinery Co's Gross Margin % has ranged from 15.27 to 24.40. According to the industry distribution chart, Motion Technology Electric & Machinery Co ranks #2385 out of 2992 companies in the Industrial Products industry, placing it in the top 79.7%.
Is Motion Technology Electric & Machinery Co's Gross Margin % too high?
Motion Technology Electric & Machinery Co's current Gross Margin % of 12.32% is 47% below median its 10-year median of 23.20. Over the past 10 years, this metric has ranged from a low of 15.27 to a high of 24.40. The Industrial Products industry median Gross Margin % is 26.82. Motion Technology Electric & Machinery Co's value of 12.32% is 54.1% below this industry median. Based on the distribution chart, Motion Technology Electric & Machinery Co ranks #2385 out of 2992 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, Motion Technology Electric & Machinery Co has a GF Score™ of 41/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Motion Technology Electric & Machinery Co's Gross Margin % compare to VRT and BE?
According to the Industrial Products industry distribution chart, Motion Technology Electric & Machinery Co ranks #2385 out of 2992 companies for Gross Margin %. This places Motion Technology Electric & Machinery Co in the lower half of its industry. The industry median Gross Margin % is 26.82. Motion Technology Electric & Machinery Co's value of 12.32% is 54.1% below this benchmark. Historically, Motion Technology Electric & Machinery Co's own Gross Margin % has ranged from 15.27 to 24.40 over the past decade. While the company's 10-year median is 23.20 vs. the industry median of 26.82, Motion Technology Electric & Machinery 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.82, based on 2,992 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. Motion Technology Electric & Machinery Co's current Gross Margin % of 12.32% is 54.1% 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 Motion Technology Electric & Machinery Co and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Motion Technology Electric & Machinery Co's current Gross Margin % is 12.32%, which is 47% below median its own 10-year median of 23.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Motion Technology Electric & Machinery Co stock overvalued right now?
Based on GuruFocus' analysis, Motion Technology Electric & Machinery Co (ROCO:4589) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$33.29, compared to a current price of NT$38.15 — trading 14.6% above its estimated fair value. The current Gross Margin % is 12.32%, which is 47% below median its 10-year median of 23.20 and 54.1% below the Industrial Products industry median of 26.82. Motion Technology Electric & Machinery Co's overall GF Score™ is 41/100 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 Motion Technology Electric & Machinery Co (ROCO:4589), the current Gross Margin % is 12.32% 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 Motion Technology Electric & Machinery Co (ROCO:4589) Overvalued in 2026?
Based on GuruFocus' analysis, Motion Technology Electric & Machinery Co stock appears to be overvalued.
The current stock price of NT$38.15 is trading 14.6% above its estimated GF Value™ of NT$33.29.
GuruFocus considers Motion Technology Electric & Machinery Co to be Modestly Overvalued.
Key valuation signals for ROCO:4589:
Gross Margin %: 12.32% (47% below median its 10-year median of 23.20)
GF Value™: NT$33.29 vs. price of NT$38.15 (14.6% above fair value)
Industry Position: 54.1% below the Industrial Products median (#2385 of 2992)
No single metric tells the full story. See the ROCO:4589 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Motion Technology Electric & Machinery Co Business Description
Motion Technology Electric & Machinery Co Ltd engages in the design and production of high-precision motors for use in medical appliances, electric wheelchairs, mobility scooters, elevators, and transmission systems. Its products include brush DC motors, brushless DC motors, BLDC drivers, servo motors, induction motors, and reluctance motor control. Geographically, the company generates the majority of its revenue from Asia, followed by Taiwan.
41GF Score
Get the complete analysis for ROCO:4589
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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