Leo SystemsROCO:5410 -2.76%63 Gross Margin % is 22.73% as of Dec. 2025, which is 33% above its 10-year median of 17.09. GuruFocus rates ROCO:5410 with a GF Score™ of 63/100 and a GF Value™ of NT$27.31 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 2,450 Hardware companies, Leo Systems ranks worse than 67.06% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Leo Systems's Gross Profit for the
three
months ended in Dec. 2025 was NT$201 Mil. Leo Systems's Revenue for the
three
months ended in Dec. 2025 was NT$882 Mil. Therefore, Leo Systems's Gross Margin % for the quarter that ended in Dec. 2025 was 22.73%.
The historical rank and industry rank for Leo Systems's Gross Margin % or its related term are showing as below:
ROCO:5410'
s Gross Margin % Range Over the Past 10 Years
Min: 12.86 Med: 17.09 Max: 19.44
Current: 17.53
During the past 13 years, the highestGross Margin % of Leo Systems was 19.44%. The lowest was 12.86%. And the median was 17.09%.
ROCO:5410's Gross Margin % is ranked worse than 67.06% of 2450
companies
in the Hardware industry
Industry Median: 24.5
vs ROCO:5410: 17.53
Leo Systems had a gross margin of 22.73% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Leo Systems was 1.80% per year.
Leo Systems (ROCO:5410) 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
Leo Systems had a gross margin of 22.73% 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.
Leo Systems Gross Margin % Related Terms
Leo Systems Gross Margin % Historical Data
* Premium members only.
The historical data trend for Leo Systems'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:5410 vs SNDK, DELL, STX: Gross Margin % Comparison
For the Computer Hardware subindustry, Leo Systems'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.
Leo Systems Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Leo Systems's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Leo Systems'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.
Leo Systems (ROCO:5410) has a Gross Margin % of 22.73% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Leo Systems and its competitors. This is 33% above median its historical median of 17.09. Over the past decade, Leo Systems' Gross Margin % has ranged from 12.86 to 19.44. According to the industry distribution chart, Leo Systems ranks #1643 out of 2450 companies in the Hardware industry, placing it in the top 67.1%.
Is Leo Systems' Gross Margin % too high?
Leo Systems' current Gross Margin % of 22.73% is 33% above median its 10-year median of 17.09. Over the past 10 years, this metric has ranged from a low of 12.86 to a high of 19.44. The Hardware industry median Gross Margin % is 24.50. Leo Systems' value of 22.73% is 7.2% below this industry median. Based on the distribution chart, Leo Systems ranks #1643 out of 2450 companies in the Hardware industry, which is below the industry midpoint. Overall, Leo Systems has a GF Score™ of 63/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Leo Systems' Gross Margin % compare to SNDK and DELL?
According to the Hardware industry distribution chart, Leo Systems ranks #1643 out of 2450 companies for Gross Margin %. This places Leo Systems in the lower half of its industry. The industry median Gross Margin % is 24.50. Leo Systems' value of 22.73% is 7.2% below this benchmark. Historically, Leo Systems' own Gross Margin % has ranged from 12.86 to 19.44 over the past decade. While the company's 10-year median is 17.09 vs. the industry median of 24.50, Leo Systems 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 a Hardware company?
The median Gross Margin % among Hardware companies is 24.50, based on 2,450 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. Leo Systems's current Gross Margin % of 22.73% is 7.2% 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 Leo Systems 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. Leo Systems's current Gross Margin % is 22.73%, which is 33% above median its own 10-year median of 17.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Leo Systems stock overvalued right now?
Based on GuruFocus' analysis, Leo Systems (ROCO:5410) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$27.31, compared to a current price of NT$44.00 — trading 61.1% above its estimated fair value. The current Gross Margin % is 22.73%, which is 33% above median its 10-year median of 17.09 and 7.2% below the Hardware industry median of 24.50. Leo Systems' overall GF Score™ is 63/100 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 Leo Systems (ROCO:5410), the current Gross Margin % is 22.73% 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 Leo Systems (ROCO:5410) Overvalued in 2026?
Based on GuruFocus' analysis, Leo Systems stock appears to be overvalued.
The current stock price of NT$44.00 is trading 61.1% above its estimated GF Value™ of NT$27.31.
GuruFocus considers Leo Systems to be Significantly Overvalued.
Key valuation signals for ROCO:5410:
Gross Margin %: 22.73% (33% above median its 10-year median of 17.09)
GF Value™: NT$27.31 vs. price of NT$44.00 (61.1% above fair value)
Industry Position: 7.2% below the Hardware median (#1643 of 2450)
No single metric tells the full story. See the ROCO:5410 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Leo Systems Inc is mainly engaged in the sales of information software and hardware products, software planning and design, computer hardware maintenance services, and system integration. The company's ,main business and products includes Sales of personal computer, Innovation of technology application and creation of operation service, Information integration service, Design and planning of construction, Investment business. The company has single reportable segment. The company's operation were mainly located in Taiwan.
63GF Score
Get the complete analysis for ROCO:5410
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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