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Chunghwa Precision Test Tech Co (ROCO:6510) 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
Chunghwa Precision Test Tech Co had a gross margin of 56.00% 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.
Chunghwa Precision Test Tech Co Gross Margin % Related Terms
Chunghwa Precision Test Tech 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.
Chunghwa Precision Test Tech Co Gross Margin % Chart
ROCO:6510 vs AMAT, LRCX, KLAC: Gross Margin % Comparison
For the Semiconductor Equipment & Materials subindustry, Chunghwa Precision Test Tech 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.
Chunghwa Precision Test Tech Co Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Chunghwa Precision Test Tech Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Chunghwa Precision Test Tech 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.
Chunghwa Precision Test Tech Co (ROCO:6510) has a Gross Margin % of 56.00% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Chunghwa Precision Test Tech Co and its competitors. This is near median its historical median of 53.36. Over the past decade, Chunghwa Precision Test Tech Co's Gross Margin % has ranged from 48.23 to 55.52. According to the industry distribution chart, Chunghwa Precision Test Tech Co ranks #109 out of 1011 companies in the Semiconductors industry, placing it in the top 10.8%.
Is Chunghwa Precision Test Tech Co's Gross Margin % too high?
Chunghwa Precision Test Tech Co's current Gross Margin % of 56.00% is near median its 10-year median of 53.36. Over the past 10 years, this metric has ranged from a low of 48.23 to a high of 55.52. The Semiconductors industry median Gross Margin % is 29.61. Chunghwa Precision Test Tech Co's value of 56.00% is 89.1% above this industry median. Based on the distribution chart, Chunghwa Precision Test Tech Co ranks #109 out of 1011 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Chunghwa Precision Test Tech Co has a GF Score™ of 73/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Chunghwa Precision Test Tech Co's Gross Margin % compare to AMAT and LRCX?
According to the Semiconductors industry distribution chart, Chunghwa Precision Test Tech Co ranks #109 out of 1011 companies for Gross Margin %. This places Chunghwa Precision Test Tech Co in the top 11% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 29.61. Chunghwa Precision Test Tech Co's value of 56.00% is 89.1% above this benchmark. Historically, Chunghwa Precision Test Tech Co's own Gross Margin % has ranged from 48.23 to 55.52 over the past decade. While the company's 10-year median is 53.36 vs. the industry median of 29.61, Chunghwa Precision Test Tech 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. Chunghwa Precision Test Tech Co's current Gross Margin % of 56.00% is 89.1% 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 Chunghwa Precision Test Tech 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. Chunghwa Precision Test Tech Co's current Gross Margin % is 56.00%, which is near median its own 10-year median of 53.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chunghwa Precision Test Tech Co stock overvalued right now?
Based on GuruFocus' analysis, Chunghwa Precision Test Tech Co (ROCO:6510) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$1,100.10, compared to a current price of NT$2,810.00 — trading 155.4% above its estimated fair value. The current Gross Margin % is 56.00%, which is near median its 10-year median of 53.36 and 89.1% above the Semiconductors industry median of 29.61. Chunghwa Precision Test Tech Co's overall GF Score™ is 73/100. 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 Chunghwa Precision Test Tech Co (ROCO:6510), the current Gross Margin % is 56.00% 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 Chunghwa Precision Test Tech Co (ROCO:6510) Overvalued in 2026?
Based on GuruFocus' analysis, Chunghwa Precision Test Tech Co stock appears to be overvalued.
The current stock price of NT$2,810.00 is trading 155.4% above its estimated GF Value™ of NT$1,100.10.
GuruFocus considers Chunghwa Precision Test Tech Co to be Significantly Overvalued.
Key valuation signals for ROCO:6510:
Gross Margin %: 56.00% (near median its 10-year median of 53.36)
GF Value™: NT$1,100.10 vs. price of NT$2,810.00 (155.4% above fair value)
Industry Position: 89.1% above the Semiconductors median (#109 of 1011)
No single metric tells the full story. See the ROCO:6510 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chunghwa Precision Test Tech Co Business Description
Chunghwa Precision Test Tech Co Ltd is engaged mainly in the testing of semiconductor components, the production of printed circuit boards, and the marketing of electronic products. The company earns operating revenue from the production and sales of semiconductor testing components and printed circuit boards, as well as other electronic products. It also earns revenue from the rendering of services such as designing and maintaining semiconductor components, printed circuit boards, and providing after-sales services. It generates maximum revenue from the sale of wafer test boards. Geographically, the company generates maximum revenue from Taiwan, followed by the United States, China, and Other regions.
73GF Score
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