Formosa Optical Technology CoROCO:5312 +0.56%82 Gross Margin % is 62.75% as of Dec. 2025, which is 5% above its 10-year median of 59.95. GuruFocus rates ROCO:5312 with a GF Score™ of 82/100 and a GF Value™ of NT$108.67 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 805 Medical Devices & Instruments companies, Formosa Optical Technology Co ranks better than 68.2% on this metric.
ROCO:5312's Gross Margin % is ranked better than 68.2% of 805
companies
in the Medical Devices & Instruments industry
Industry Median: 52.03
vs ROCO:5312: 63.46
Formosa Optical Technology Co had a gross margin of 62.75% for the quarter that ended in Dec. 2025 => Durable competitive advantage
Formosa Optical Technology Co (ROCO:5312) 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
Formosa Optical Technology Co had a gross margin of 62.75% 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.
Formosa Optical Technology Co Gross Margin % Related Terms
Formosa Optical Technology 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.
Formosa Optical Technology Co Gross Margin % Chart
ROCO:5312 vs ISRG, BDX, MDLN: Gross Margin % Comparison
For the Medical Instruments & Supplies subindustry, Formosa Optical Technology 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.
Formosa Optical Technology Co Gross Margin % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Formosa Optical Technology Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Formosa Optical Technology 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.
Formosa Optical Technology Co (ROCO:5312) has a Gross Margin % of 62.75% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Formosa Optical Technology Co and its competitors. This is near median its historical median of 59.95. Over the past decade, Formosa Optical Technology Co's Gross Margin % has ranged from 57.78 to 63.46. According to the industry distribution chart, Formosa Optical Technology Co ranks #256 out of 805 companies in the Medical Devices & Instruments industry, placing it in the top 31.8%.
Is Formosa Optical Technology Co's Gross Margin % too high?
Formosa Optical Technology Co's current Gross Margin % of 62.75% is near median its 10-year median of 59.95. Over the past 10 years, this metric has ranged from a low of 57.78 to a high of 63.46. The Medical Devices & Instruments industry median Gross Margin % is 52.03. Formosa Optical Technology Co's value of 62.75% is 20.6% above this industry median. Based on the distribution chart, Formosa Optical Technology Co ranks #256 out of 805 companies in the Medical Devices & Instruments industry, which is above the industry midpoint. Overall, Formosa Optical Technology Co has a GF Score™ of 82/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Formosa Optical Technology Co's Gross Margin % compare to ISRG and BDX?
According to the Medical Devices & Instruments industry distribution chart, Formosa Optical Technology Co ranks #256 out of 805 companies for Gross Margin %. This puts Formosa Optical Technology Co in the upper half of its industry. The industry median Gross Margin % is 52.03. Formosa Optical Technology Co's value of 62.75% is 20.6% above this benchmark. Historically, Formosa Optical Technology Co's own Gross Margin % has ranged from 57.78 to 63.46 over the past decade. While the company's 10-year median is 59.95 vs. the industry median of 52.03, Formosa Optical Technology 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 a Medical Devices & Instruments company?
The median Gross Margin % among Medical Devices & Instruments companies is 52.03, based on 805 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. Formosa Optical Technology Co's current Gross Margin % of 62.75% is 20.6% 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 Formosa Optical Technology Co and its competitors. For the Medical Devices & Instruments industry, the median Gross Margin % is 52.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formosa Optical Technology Co's current Gross Margin % is 62.75%, which is near median its own 10-year median of 59.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Formosa Optical Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Formosa Optical Technology Co (ROCO:5312) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$108.67, compared to a current price of NT$90.10 — trading 17.1% below its estimated fair value. The current Gross Margin % is 62.75%, which is near median its 10-year median of 59.95 and 20.6% above the Medical Devices & Instruments industry median of 52.03. Formosa Optical Technology Co's overall GF Score™ is 82/100 with 4 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 Formosa Optical Technology Co (ROCO:5312), the current Gross Margin % is 62.75% 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 Formosa Optical Technology Co (ROCO:5312) Overvalued in 2026?
Based on GuruFocus' analysis, Formosa Optical Technology Co stock appears to be undervalued.
The current stock price of NT$90.10 is trading 17.1% below its estimated GF Value™ of NT$108.67.
GuruFocus considers Formosa Optical Technology Co to be Modestly Undervalued.
Key valuation signals for ROCO:5312:
Gross Margin %: 62.75% (near median its 10-year median of 59.95)
GF Value™: NT$108.67 vs. price of NT$90.10 (17.1% below fair value)
Industry Position: 20.6% above the Medical Devices & Instruments median (#256 of 805)
No single metric tells the full story. See the ROCO:5312 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Formosa Optical Technology Co Business Description
Formosa Optical Technology Co Ltd is mainly engaged in the eyewear business, including optometry services and the retail business selling contact lenses and eye drops. The Group mainly derives revenue from the business divisions of Formosa Optical Technology and Bo Wei Optical, with Formosa Optical Technology generating maximum revenue. The majority of revenue is derived from the sale of glasses. The Group generates the majority of its revenue from Taiwan.
82GF Score
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