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Rich Circle Development CoROCO:6198 28 Gross Margin % is 72.73% as of Dec. 2025, which is 7% above its 10-year median of 67.92. GuruFocus rates ROCO:6198 with a GF Score™ of 28/100 and a GF Value™ of NT$0.44 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,011 Semiconductors companies, Rich Circle Development Co ranks better than 96.04% on this metric.
Rich Circle Development Co (ROCO:6198) 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
Rich Circle Development Co had a gross margin of 72.73% 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.
Rich Circle Development Co Gross Margin % Related Terms
Rich Circle Development 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:6198 vs NVDA, AVGO, MU: Gross Margin % Comparison
For the Semiconductors subindustry, Rich Circle Development 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.
Rich Circle Development Co Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Rich Circle Development Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Rich Circle Development 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.
Rich Circle Development Co (ROCO:6198) has a Gross Margin % of 72.73% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Rich Circle Development Co and its competitors. This is near median its historical median of 67.92. Over the past decade, Rich Circle Development Co's Gross Margin % has ranged from 16.25 to 81.82. According to the industry distribution chart, Rich Circle Development Co ranks #40 out of 1011 companies in the Semiconductors industry, placing it in the top 4%.
Is Rich Circle Development Co's Gross Margin % too high?
Rich Circle Development Co's current Gross Margin % of 72.73% is near median its 10-year median of 67.92. Over the past 10 years, this metric has ranged from a low of 16.25 to a high of 81.82. The Semiconductors industry median Gross Margin % is 29.61. Rich Circle Development Co's value of 72.73% is 145.6% above this industry median. Based on the distribution chart, Rich Circle Development Co ranks #40 out of 1011 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Rich Circle Development Co has a GF Score™ of 28/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rich Circle Development Co's Gross Margin % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Rich Circle Development Co ranks #40 out of 1011 companies for Gross Margin %. This places Rich Circle Development Co in the top 4% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 29.61. Rich Circle Development Co's value of 72.73% is 145.6% above this benchmark. Historically, Rich Circle Development Co's own Gross Margin % has ranged from 16.25 to 81.82 over the past decade. While the company's 10-year median is 67.92 vs. the industry median of 29.61, Rich Circle Development 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 Semiconductors company?
The median Gross Margin % among Semiconductors companies is 29.61, based on 1,011 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. Rich Circle Development Co's current Gross Margin % of 72.73% is 145.6% 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 Rich Circle Development Co and its competitors. For the Semiconductors industry, the median Gross Margin % is 29.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rich Circle Development Co's current Gross Margin % is 72.73%, which is near median its own 10-year median of 67.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rich Circle Development Co stock overvalued right now?
Based on GuruFocus' analysis, Rich Circle Development Co (ROCO:6198) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$0.44, compared to a current price of NT$20.45 — trading 4547.7% above its estimated fair value. The current Gross Margin % is 72.73%, which is near median its 10-year median of 67.92 and 145.6% above the Semiconductors industry median of 29.61. Rich Circle Development Co's overall GF Score™ is 28/100 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 Rich Circle Development Co (ROCO:6198), the current Gross Margin % is 72.73% 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 Rich Circle Development Co (ROCO:6198) Overvalued in 2026?
Based on GuruFocus' analysis, Rich Circle Development Co stock appears to be overvalued.
The current stock price of NT$20.45 is trading 4547.7% above its estimated GF Value™ of NT$0.44.
GuruFocus considers Rich Circle Development Co to be Significantly Overvalued.
Key valuation signals for ROCO:6198:
Gross Margin %: 72.73% (near median its 10-year median of 67.92)
GF Value™: NT$0.44 vs. price of NT$20.45 (4547.7% above fair value)
Industry Position: 145.6% above the Semiconductors median (#40 of 1011)
No single metric tells the full story. See the ROCO:6198 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rich Circle Development Co Ltd is mainly engaged in the design, marketing and sales of integrated circuits, semiconductor memory components, digital communication products, computer peripherals, semiconductor components and other related businesses. The Company has two reportable operating segments: the Development department, which engages in development of commercial buildings, public housing and industrial plant for leasing and sales; and the Construction department, which engages in the business of construction and civil engineering and generates maximum revenue.
28GF Score
Get the complete analysis for ROCO:6198
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