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Song Shang Electronics Co (ROCO:6156) 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
Song Shang Electronics Co had a gross margin of 12.82% 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.
Song Shang Electronics Co Gross Margin % Related Terms
Song Shang 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.
For the Electronic Components subindustry, Song Shang 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.
Song Shang Electronics Co Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Song Shang Electronics Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Song Shang 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.
Song Shang Electronics Co (ROCO:6156) has a Gross Margin % of 12.82% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Song Shang Electronics Co and its competitors. This is 17% below median its historical median of 15.41. Over the past decade, Song Shang Electronics Co's Gross Margin % has ranged from 10.68 to 20.42. According to the industry distribution chart, Song Shang Electronics Co ranks #1756 out of 2454 companies in the Hardware industry, placing it in the top 71.6%.
Is Song Shang Electronics Co's Gross Margin % too high?
Song Shang Electronics Co's current Gross Margin % of 12.82% is 17% below median its 10-year median of 15.41. Over the past 10 years, this metric has ranged from a low of 10.68 to a high of 20.42. The Hardware industry median Gross Margin % is 24.50. Song Shang Electronics Co's value of 12.82% is 47.7% below this industry median. Based on the distribution chart, Song Shang Electronics Co ranks #1756 out of 2454 companies in the Hardware industry, which is below the industry midpoint. Overall, Song Shang Electronics Co has a GF Score™ of 69/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Song Shang Electronics Co's Gross Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Song Shang Electronics Co ranks #1756 out of 2454 companies for Gross Margin %. This places Song Shang Electronics Co in the lower half of its industry. The industry median Gross Margin % is 24.50. Song Shang Electronics Co's value of 12.82% is 47.7% below this benchmark. Historically, Song Shang Electronics Co's own Gross Margin % has ranged from 10.68 to 20.42 over the past decade. While the company's 10-year median is 15.41 vs. the industry median of 24.50, Song Shang 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 a Hardware company?
The median Gross Margin % among Hardware companies is 24.50, based on 2,454 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. Song Shang Electronics Co's current Gross Margin % of 12.82% is 47.7% 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 Song Shang Electronics Co 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. Song Shang Electronics Co's current Gross Margin % is 12.82%, which is 17% below median its own 10-year median of 15.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Song Shang Electronics Co stock overvalued right now?
Based on GuruFocus' analysis, Song Shang Electronics Co (ROCO:6156) is currently considered Fairly Valued. The stock's GF Value™ is NT$24.82, compared to a current price of NT$24.20 — trading 2.5% below its estimated fair value. The current Gross Margin % is 12.82%, which is 17% below median its 10-year median of 15.41 and 47.7% below the Hardware industry median of 24.50. Song Shang Electronics Co's overall GF Score™ is 69/100 with 8 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 Song Shang Electronics Co (ROCO:6156), the current Gross Margin % is 12.82% 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 Song Shang Electronics Co (ROCO:6156) Overvalued in 2026?
Based on GuruFocus' analysis, Song Shang Electronics Co stock appears to be undervalued.
The current stock price of NT$24.20 is trading 2.5% below its estimated GF Value™ of NT$24.82.
GuruFocus considers Song Shang Electronics Co to be Fairly Valued.
Key valuation signals for ROCO:6156:
Gross Margin %: 12.82% (17% below median its 10-year median of 15.41)
GF Value™: NT$24.82 vs. price of NT$24.20 (2.5% below fair value)
Industry Position: 47.7% below the Hardware median (#1756 of 2454)
No single metric tells the full story. See the ROCO:6156 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Song Shang Electronics Co Ltd is engaged in the production and sales of electronic components and related products. Its products include transformers, magnetic components, printed circuit boards, filters, and inductors, which are mainly used in various power supplies such as Adapter, Led TVs, Lcd TVs, chargers, Game Console, Desktop, Monitor, Printer, Lighting, and communication. It operates in two segments. PCB Segment is responsible for the production and sales of printed circuit boards. Transformer Segment: This segment is responsible for producing and selling transformers and resistors.
69GF Score
Get the complete analysis for ROCO:6156
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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