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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
U-Media Communications had a gross margin of 20.84% 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.
U-Media Communications Gross Margin % Related Terms
U-Media Communications Gross Margin % Historical Data
* Premium members only.
The historical data trend for U-Media Communications'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:6470 vs CSCO, CIEN, MSI: Gross Margin % Comparison
For the Communication Equipment subindustry, U-Media Communications'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.
U-Media Communications Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, U-Media Communications's Gross Margin % distribution charts can be found below:
* The bar in red indicates where U-Media Communications'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.
U-Media Communications (ROCO:6470) has a Gross Margin % of 20.84% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on U-Media Communications and its competitors. This is near median its historical median of 19.78. Over the past decade, U-Media Communications' Gross Margin % has ranged from 16.51 to 21.64. According to the industry distribution chart, U-Media Communications ranks #1606 out of 2455 companies in the Hardware industry, placing it in the top 65.4%.
Is U-Media Communications' Gross Margin % too high?
U-Media Communications' current Gross Margin % of 20.84% is near median its 10-year median of 19.78. Over the past 10 years, this metric has ranged from a low of 16.51 to a high of 21.64. The Hardware industry median Gross Margin % is 24.50. U-Media Communications' value of 20.84% is 14.9% below this industry median. Based on the distribution chart, U-Media Communications ranks #1606 out of 2455 companies in the Hardware industry, which is below the industry midpoint. Overall, U-Media Communications has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does U-Media Communications' Gross Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, U-Media Communications ranks #1606 out of 2455 companies for Gross Margin %. This places U-Media Communications in the lower half of its industry. The industry median Gross Margin % is 24.50. U-Media Communications' value of 20.84% is 14.9% below this benchmark. Historically, U-Media Communications' own Gross Margin % has ranged from 16.51 to 21.64 over the past decade. While the company's 10-year median is 19.78 vs. the industry median of 24.50, U-Media Communications 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 2,455 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. U-Media Communications's current Gross Margin % of 20.84% is 14.9% 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 U-Media Communications 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. U-Media Communications's current Gross Margin % is 20.84%, which is near median its own 10-year median of 19.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is U-Media Communications stock overvalued right now?
Based on GuruFocus' analysis, U-Media Communications (ROCO:6470) is currently considered Fairly Valued. The stock's GF Value™ is NT$46.66, compared to a current price of NT$47.75 — trading 2.3% above its estimated fair value. The current Gross Margin % is 20.84%, which is near median its 10-year median of 19.78 and 14.9% below the Hardware industry median of 24.50. U-Media Communications' overall GF Score™ is 76/100 with 5 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 U-Media Communications (ROCO:6470), the current Gross Margin % is 20.84% 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 U-Media Communications (ROCO:6470) Overvalued in 2026?
Based on GuruFocus' analysis, U-Media Communications stock appears to be overvalued.
The current stock price of NT$47.75 is trading 2.3% above its estimated GF Value™ of NT$46.66.
GuruFocus considers U-Media Communications to be Fairly Valued.
Key valuation signals for ROCO:6470:
Gross Margin %: 20.84% (near median its 10-year median of 19.78)
GF Value™: NT$46.66 vs. price of NT$47.75 (2.3% above fair value)
Industry Position: 14.9% below the Hardware median (#1606 of 2455)
No single metric tells the full story. See the ROCO:6470 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
U-Media Communications Inc is a Taiwan based company engaged in electronic component manufacturing, wired and wireless, Line communication machinery and equipment manufacturing, data storage and processing equipment manufacturing, manufacturing output, communication industry engineering, information software services, telecommunications control radio frequency equipment input and manufacturing, etc. The products of the company include Wireless Broadband, Wifi products like WST and Router and Wireless AV.
76GF Score
Get the complete analysis for ROCO:6470
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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