Penpower TechnologyROCO:5211 67 Gross Margin % is 44.64% as of Dec. 2025, which is 30% below its 10-year median of 63.61. GuruFocus rates ROCO:5211 with a GF Score™ of 67/100 and a GF Value™ of NT$36.70 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 2,685 Software companies, Penpower Technology ranks better than 59.33% on this metric.
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
Penpower Technology had a gross margin of 44.64% 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.
Penpower Technology Gross Margin % Related Terms
Penpower Technology Gross Margin % Historical Data
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The historical data trend for Penpower Technology'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.
ROCO:5211 vs UBER, SHOP, CRM: Gross Margin % Comparison
For the Software - Application subindustry, Penpower Technology'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.
Penpower Technology Gross Margin % vs Software Industry
For the Software industry and Technology sector, Penpower Technology's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Penpower Technology'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.
Penpower Technology (ROCO:5211) has a Gross Margin % of 44.64% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Penpower Technology and its competitors. This is 30% below median its historical median of 63.61. Over the past decade, Penpower Technology's Gross Margin % has ranged from 48.49 to 68.74. According to the industry distribution chart, Penpower Technology ranks #1092 out of 2685 companies in the Software industry, placing it in the top 40.7%.
Is Penpower Technology's Gross Margin % too high?
Penpower Technology's current Gross Margin % of 44.64% is 30% below median its 10-year median of 63.61. Over the past 10 years, this metric has ranged from a low of 48.49 to a high of 68.74. The Software industry median Gross Margin % is 40.49. Penpower Technology's value of 44.64% is 10.2% above this industry median. Based on the distribution chart, Penpower Technology ranks #1092 out of 2685 companies in the Software industry, which is above the industry midpoint. Overall, Penpower Technology has a GF Score™ of 67/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Penpower Technology's Gross Margin % compare to UBER and SHOP?
According to the Software industry distribution chart, Penpower Technology ranks #1092 out of 2685 companies for Gross Margin %. This puts Penpower Technology in the upper half of its industry. The industry median Gross Margin % is 40.49. Penpower Technology's value of 44.64% is 10.2% above this benchmark. Historically, Penpower Technology's own Gross Margin % has ranged from 48.49 to 68.74 over the past decade. While the company's 10-year median is 63.61 vs. the industry median of 40.49, Penpower Technology 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 Software company?
The median Gross Margin % among Software companies is 40.49, based on 2,685 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. Penpower Technology's current Gross Margin % of 44.64% is 10.2% 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 Penpower Technology and its competitors. For the Software industry, the median Gross Margin % is 40.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Penpower Technology's current Gross Margin % is 44.64%, which is 30% below median its own 10-year median of 63.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Penpower Technology stock overvalued right now?
Based on GuruFocus' analysis, Penpower Technology (ROCO:5211) is currently considered Significantly Undervalued. The stock's GF Value™ is NT$36.70, compared to a current price of NT$22.20 — trading 39.5% below its estimated fair value. The current Gross Margin % is 44.64%, which is 30% below median its 10-year median of 63.61 and 10.2% above the Software industry median of 40.49. Penpower Technology's overall GF Score™ is 67/100 with 1 warning sign 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 Penpower Technology (ROCO:5211), the current Gross Margin % is 44.64% 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 Penpower Technology (ROCO:5211) Overvalued in 2026?
Based on GuruFocus' analysis, Penpower Technology stock appears to be undervalued.
The current stock price of NT$22.20 is trading 39.5% below its estimated GF Value™ of NT$36.70.
GuruFocus considers Penpower Technology to be Significantly Undervalued.
Key valuation signals for ROCO:5211:
Gross Margin %: 44.64% (30% below median its 10-year median of 63.61)
GF Value™: NT$36.70 vs. price of NT$22.20 (39.5% below fair value)
Industry Position: 10.2% above the Software median (#1092 of 2685)
No single metric tells the full story. See the ROCO:5211 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Penpower Technology Ltd is a smart human-machine interface core technology research and development company. The company is engaged in the manufacturing and distribution of software products. It offers products based on its handwriting recognition, voice recognition, optical character recognition, business card recognition, biometrics recognition, and security technologies. The technologies serve different industries such as PC, mobile devices, communication transmission, internet, and information appliances. It has operations in Hong Kong, Singapore, China, and the United States.
67GF Score
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