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Key Ware Electronics CoROCO:5498 -9.17%43 Gross Margin % is 15.17% as of Dec. 2025, which is 25% above its 10-year median of 12.16. GuruFocus rates ROCO:5498 with a GF Score™ of 43/100 and a GF Value™ of NT$14.57 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 2,996 Industrial Products companies, Key Ware Electronics Co ranks worse than 88.35% on this metric.
ROCO:5498's Gross Margin % is ranked worse than 88.35% of 2996
companies
in the Industrial Products industry
Industry Median: 26.8
vs ROCO:5498: 10.89
Key Ware Electronics Co had a gross margin of 15.17% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Key Ware Electronics Co was 0.00% per year.
Key Ware Electronics Co (ROCO:5498) 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
Key Ware Electronics Co had a gross margin of 15.17% 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.
Key Ware Electronics Co Gross Margin % Related Terms
Key Ware Electronics 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.
ROCO:5498 vs SNA, RBC, LECO: Gross Margin % Comparison
For the Tools & Accessories subindustry, Key Ware Electronics 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.
Key Ware Electronics Co Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Key Ware Electronics Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Key Ware Electronics 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.
Key Ware Electronics Co (ROCO:5498) has a Gross Margin % of 15.17% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Key Ware Electronics Co and its competitors. This is 25% above median its historical median of 12.16. According to the industry distribution chart, Key Ware Electronics Co ranks #2647 out of 2996 companies in the Industrial Products industry, placing it in the top 88.4%.
Is Key Ware Electronics Co's Gross Margin % too high?
Key Ware Electronics Co's current Gross Margin % of 15.17% is 25% above median its 10-year median of 12.16. The Industrial Products industry median Gross Margin % is 26.80. Key Ware Electronics Co's value of 15.17% is 43.4% below this industry median. Based on the distribution chart, Key Ware Electronics Co ranks #2647 out of 2996 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, Key Ware Electronics Co has a GF Score™ of 43/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Key Ware Electronics Co's Gross Margin % compare to SNA and RBC?
According to the Industrial Products industry distribution chart, Key Ware Electronics Co ranks #2647 out of 2996 companies for Gross Margin %. This places Key Ware Electronics Co in the lower half of its industry. The industry median Gross Margin % is 26.80. Key Ware Electronics Co's value of 15.17% is 43.4% below this benchmark. While the company's 10-year median is 12.16 vs. the industry median of 26.80, Key Ware Electronics 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 26.80, based on 2,996 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. Key Ware Electronics Co's current Gross Margin % of 15.17% is 43.4% 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 Key Ware Electronics Co and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Key Ware Electronics Co's current Gross Margin % is 15.17%, which is 25% above median its own 10-year median of 12.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Key Ware Electronics Co stock overvalued right now?
Based on GuruFocus' analysis, Key Ware Electronics Co (ROCO:5498) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$14.57, compared to a current price of NT$49.05 — trading 236.7% above its estimated fair value. The current Gross Margin % is 15.17%, which is 25% above median its 10-year median of 12.16 and 43.4% below the Industrial Products industry median of 26.80. Key Ware Electronics Co's overall GF Score™ is 43/100 with 3 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 Key Ware Electronics Co (ROCO:5498), the current Gross Margin % is 15.17% 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 Key Ware Electronics Co (ROCO:5498) Overvalued in 2026?
Based on GuruFocus' analysis, Key Ware Electronics Co stock appears to be overvalued.
The current stock price of NT$49.05 is trading 236.7% above its estimated GF Value™ of NT$14.57.
GuruFocus considers Key Ware Electronics Co to be Significantly Overvalued.
Key valuation signals for ROCO:5498:
Gross Margin %: 15.17% (25% above median its 10-year median of 12.16)
GF Value™: NT$14.57 vs. price of NT$49.05 (236.7% above fair value)
Industry Position: 43.4% below the Industrial Products median (#2647 of 2996)
No single metric tells the full story. See the ROCO:5498 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Key Ware Electronics Co Ltd is engaged in the design, manufacture, and processing of printed circuit board materials such as electroplating solutions, dry films, drill bits, and copper foil substrates. Its include drills, milling cutters, special tools, tungsten steel, and related consumables sales.
43GF Score
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