Tainet Communication System (ROCO:4905) 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
Tainet Communication System had a gross margin of 25.49% 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.
Tainet Communication System Gross Margin % Related Terms
Tainet Communication System 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.
ROCO:4905 vs CSCO, CIEN, MSI: Gross Margin % Comparison
For the Communication Equipment subindustry, Tainet Communication System'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.
Tainet Communication System Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Tainet Communication System's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Tainet Communication System'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.
Tainet Communication System (ROCO:4905) has a Gross Margin % of 25.49% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Tainet Communication System and its competitors. This is 23% below median its historical median of 32.99. Over the past decade, Tainet Communication System's Gross Margin % has ranged from 23.43 to 42.13. According to the industry distribution chart, Tainet Communication System ranks #1158 out of 2449 companies in the Hardware industry, placing it in the top 47.3%.
Is Tainet Communication System's Gross Margin % too high?
Tainet Communication System's current Gross Margin % of 25.49% is 23% below median its 10-year median of 32.99. Over the past 10 years, this metric has ranged from a low of 23.43 to a high of 42.13. The Hardware industry median Gross Margin % is 24.50. Tainet Communication System's value of 25.49% is 4% above this industry median. Based on the distribution chart, Tainet Communication System ranks #1158 out of 2449 companies in the Hardware industry, which is above the industry midpoint. Overall, Tainet Communication System has a GF Score™ of 54/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Tainet Communication System's Gross Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Tainet Communication System ranks #1158 out of 2449 companies for Gross Margin %. This puts Tainet Communication System in the upper half of its industry. The industry median Gross Margin % is 24.50. Tainet Communication System's value of 25.49% is 4% above this benchmark. Historically, Tainet Communication System's own Gross Margin % has ranged from 23.43 to 42.13 over the past decade. While the company's 10-year median is 32.99 vs. the industry median of 24.50, Tainet Communication System 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 24.50, based on 2,449 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. Tainet Communication System's current Gross Margin % of 25.49% is 4% 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 Tainet Communication System 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. Tainet Communication System's current Gross Margin % is 25.49%, which is 23% below median its own 10-year median of 32.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tainet Communication System stock overvalued right now?
Based on GuruFocus' analysis, Tainet Communication System (ROCO:4905) is currently considered Possible Value Trap. The stock's GF Value™ is NT$278.09, compared to a current price of NT$68.00 — trading 75.5% below its estimated fair value. The current Gross Margin % is 25.49%, which is 23% below median its 10-year median of 32.99 and 4% above the Hardware industry median of 24.50. Tainet Communication System's overall GF Score™ is 54/100 with 7 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 Tainet Communication System (ROCO:4905), the current Gross Margin % is 25.49% 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 Tainet Communication System (ROCO:4905) Overvalued in 2026?
Based on GuruFocus' analysis, Tainet Communication System stock appears to be undervalued.
The current stock price of NT$68.00 is trading 75.5% below its estimated GF Value™ of NT$278.09.
GuruFocus considers Tainet Communication System to be Possible Value Trap.
Key valuation signals for ROCO:4905:
Gross Margin %: 25.49% (23% below median its 10-year median of 32.99)
GF Value™: NT$278.09 vs. price of NT$68.00 (75.5% below fair value)
Industry Position: 4% above the Hardware median (#1158 of 2449)
No single metric tells the full story. See the ROCO:4905 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tainet Communication System Corp is a manufacturer of digital transmission and switching equipment, data terminal equipment, line interface equipment (including telemetry devices), communication and traffic. Manufacturing, processing, trading and installation engineering business of replacement equipment, programmable power supplies, etc.
54GF Score
Get the complete analysis for ROCO:4905
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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