Tera Autotech (ROCO:6234) Gross Margin %: 5.70% (As of Dec. 2025) — 65% Below Median

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ROCO:6234 Tera Autotech Corp ROCO:6234
51 GF Score
Price NT$36.00
GF Value NT$14.86
Valuation Significantly Overvalued
! 8 Warning Signs
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What is Tera Autotech Gross Margin %?

Tera Autotech ROCO:6234 +1.27% 51 Gross Margin % is 5.70% as of Dec. 2025, which is 65% below its 10-year median of 16.47. GuruFocus rates ROCO:6234 with a GF Score™ of 51/100 and a GF Value™ of NT$14.86 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 3,000 Industrial Products companies, Tera Autotech ranks worse than 94.97% on this metric.

Gross Margin % is calculated as gross profit divided by its revenue. Tera Autotech's Gross Profit for the three months ended in Dec. 2025 was NT$7.1 Mil. Tera Autotech's Revenue for the three months ended in Dec. 2025 was NT$124.4 Mil. Therefore, Tera Autotech's Gross Margin % for the quarter that ended in Dec. 2025 was 5.70%.

Warning Sign:

Tera Autotech Corp gross margin has been in long-term decline. The average rate of decline per year is -15%.


The historical rank and industry rank for Tera Autotech's Gross Margin % or its related term are showing as below:

ROCO:6234' s Gross Margin % Range Over the Past 10 Years
Min: 5.21   Med: 16.47   Max: 18.65
Current: 5.21


During the past 13 years, the highest Gross Margin % of Tera Autotech was 18.65%. The lowest was 5.21%. And the median was 16.47%.

ROCO:6234's Gross Margin % is ranked worse than
94.97% of 3000 companies
in the Industrial Products industry
Industry Median: 26.82 vs ROCO:6234: 5.21

Tera Autotech had a gross margin of 5.70% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Tera Autotech was -15.00% per year.


Tera Autotech  (ROCO:6234) 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

Tera Autotech had a gross margin of 5.70% 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.


Tera Autotech Gross Margin % Related Terms


Tera Autotech Gross Margin % Historical Data

* Premium members only.

The historical data trend for Tera Autotech'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.

Tera Autotech Gross Margin % Chart

Tera Autotech Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 17.08 16.68 18.65 16.58 5.21

Tera Autotech Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.72 9.12 5.81 0.94 5.70

ROCO:6234 vs SNA, RBC, LECO: Gross Margin % Comparison

For the Tools & Accessories subindustry, Tera Autotech'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.


Tera Autotech Gross Margin % vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Tera Autotech's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Tera Autotech's Gross Margin % falls into.


ROCO:6234
51GF Score
Tera Autotech Corp ROCO:6234
Gross Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Tera Autotech Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Tera Autotech's Gross Margin for the fiscal year that ended in Dec. 2025 is calculated as

Gross Margin % (A: Dec. 2025 )=Gross Profit (A: Dec. 2025 ) / Revenue (A: Dec. 2025 )
=24.9 / 478.26
=(Revenue - Cost of Goods Sold) / Revenue
=(478.26 - 453.356) / 478.26
=5.21 %

Tera Autotech's Gross Margin for the quarter that ended in Dec. 2025 is calculated as


Gross Margin % (Q: Dec. 2025 )=Gross Profit (Q: Dec. 2025 ) / Revenue (Q: Dec. 2025 )
=7.1 / 124.365
=(Revenue - Cost of Goods Sold) / Revenue
=(124.365 - 117.281) / 124.365
=5.70 %

* 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.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 5.70% mean?
Tera Autotech (ROCO:6234) has a Gross Margin % of 5.70% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Tera Autotech and its competitors. This is 65% below median its historical median of 16.47. Over the past decade, Tera Autotech's Gross Margin % has ranged from 5.21 to 18.65. According to the industry distribution chart, Tera Autotech ranks #2849 out of 3000 companies in the Industrial Products industry, placing it in the top 95%.
Is Tera Autotech's Gross Margin % too high?
Tera Autotech's current Gross Margin % of 5.70% is 65% below median its 10-year median of 16.47. Over the past 10 years, this metric has ranged from a low of 5.21 to a high of 18.65. The Industrial Products industry median Gross Margin % is 26.82. Tera Autotech's value of 5.70% is 78.7% below this industry median. Based on the distribution chart, Tera Autotech ranks #2849 out of 3000 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, Tera Autotech has a GF Score™ of 51/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tera Autotech's Gross Margin % compare to SNA and RBC?
According to the Industrial Products industry distribution chart, Tera Autotech ranks #2849 out of 3000 companies for Gross Margin %. This places Tera Autotech in the lower half of its industry. The industry median Gross Margin % is 26.82. Tera Autotech's value of 5.70% is 78.7% below this benchmark. Historically, Tera Autotech's own Gross Margin % has ranged from 5.21 to 18.65 over the past decade. While the company's 10-year median is 16.47 vs. the industry median of 26.82, Tera Autotech 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 26.82, based on 3,000 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. Tera Autotech's current Gross Margin % of 5.70% is 78.7% 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 Tera Autotech and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tera Autotech's current Gross Margin % is 5.70%, which is 65% below median its own 10-year median of 16.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tera Autotech stock overvalued right now?
Based on GuruFocus' analysis, Tera Autotech (ROCO:6234) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$14.86, compared to a current price of NT$36.00 — trading 142.3% above its estimated fair value. The current Gross Margin % is 5.70%, which is 65% below median its 10-year median of 16.47 and 78.7% below the Industrial Products industry median of 26.82. Tera Autotech's overall GF Score™ is 51/100 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 Tera Autotech (ROCO:6234), the current Gross Margin % is 5.70% 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 Tera Autotech (ROCO:6234) Overvalued in 2026?

Based on GuruFocus' analysis, Tera Autotech stock appears to be overvalued. The current stock price of NT$36.00 is trading 142.3% above its estimated GF Value™ of NT$14.86. GuruFocus considers Tera Autotech to be Significantly Overvalued.

Key valuation signals for ROCO:6234:

  • Gross Margin %: 5.70% (65% below median its 10-year median of 16.47)
  • GF Value™: NT$14.86 vs. price of NT$36.00 (142.3% above fair value)
  • GF Score™: 51/100 with 8 warning signs
  • Industry Position: 78.7% below the Industrial Products median (#2849 of 3000)

No single metric tells the full story. See the ROCO:6234 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Tera Autotech Business Description

Address No.1,Gong 7th Road, Dajia District, Taichung City, TWN, 437
Tera Autotech Corp is a Taiwan-based company specializing in the research, development, design, manufacture, sale, and import and export of industrial automation equipment and precision miniature drills. The company provides automation solutions for diverse industries such as semiconductor, LCD, solar, and printed circuit board manufacturing. Geographically, it serves Taiwan and China. The operating segments of the company are the Equipment Department and the Drill Department, with maximum revenue being generated from the Drill Department.
51GF Score

Get the complete analysis for ROCO:6234

Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

NT$36.00
Price
NT$14.86
GF Value