Acon Optics CommunicationsROCO:6820 +3.02%60 Gross Margin % is 24.70% as of Dec. 2025, which is 2% above its 10-year median of 24.10. GuruFocus rates ROCO:6820 with a GF Score™ of 60/100 and a GF Value™ of NT$56.58 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 2,449 Hardware companies, Acon Optics Communications ranks better than 54.63% on this metric.
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
Acon Optics Communications had a gross margin of 24.70% 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.
Acon Optics Communications Gross Margin % Related Terms
Acon Optics Communications 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:6820 vs CSCO, CIEN, MSI: Gross Margin % Comparison
For the Communication Equipment subindustry, Acon Optics 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.
Acon Optics Communications Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Acon Optics Communications's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Acon Optics 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.
Acon Optics Communications (ROCO:6820) has a Gross Margin % of 24.70% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Acon Optics Communications and its competitors. This is near median its historical median of 24.10. Over the past decade, Acon Optics Communications' Gross Margin % has ranged from 18.12 to 33.44. According to the industry distribution chart, Acon Optics Communications ranks #1111 out of 2449 companies in the Hardware industry, placing it in the top 45.4%.
Is Acon Optics Communications' Gross Margin % too high?
Acon Optics Communications' current Gross Margin % of 24.70% is near median its 10-year median of 24.10. Over the past 10 years, this metric has ranged from a low of 18.12 to a high of 33.44. The Hardware industry median Gross Margin % is 24.50. Acon Optics Communications' value of 24.70% is 0.8% above this industry median. Based on the distribution chart, Acon Optics Communications ranks #1111 out of 2449 companies in the Hardware industry, which is above the industry midpoint. Overall, Acon Optics Communications has a GF Score™ of 60/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Acon Optics Communications' Gross Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Acon Optics Communications ranks #1111 out of 2449 companies for Gross Margin %. This puts Acon Optics Communications in the upper half of its industry. The industry median Gross Margin % is 24.50. Acon Optics Communications' value of 24.70% is 0.8% above this benchmark. Historically, Acon Optics Communications' own Gross Margin % has ranged from 18.12 to 33.44 over the past decade. While the company's 10-year median is 24.10 vs. the industry median of 24.50, Acon Optics Communications 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 Hardware company?
The median Gross Margin % among Hardware companies is 24.50, based on 2,449 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. Acon Optics Communications's current Gross Margin % of 24.70% is 0.8% 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 Acon Optics 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. Acon Optics Communications's current Gross Margin % is 24.70%, which is near median its own 10-year median of 24.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Acon Optics Communications stock overvalued right now?
Based on GuruFocus' analysis, Acon Optics Communications (ROCO:6820) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$56.58, compared to a current price of NT$256.00 — trading 352.5% above its estimated fair value. The current Gross Margin % is 24.70%, which is near median its 10-year median of 24.10 and 0.8% above the Hardware industry median of 24.50. Acon Optics Communications' overall GF Score™ is 60/100 with 3 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 Acon Optics Communications (ROCO:6820), the current Gross Margin % is 24.70% 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 Acon Optics Communications (ROCO:6820) Overvalued in 2026?
Based on GuruFocus' analysis, Acon Optics Communications stock appears to be overvalued.
The current stock price of NT$256.00 is trading 352.5% above its estimated GF Value™ of NT$56.58.
GuruFocus considers Acon Optics Communications to be Significantly Overvalued.
Key valuation signals for ROCO:6820:
Gross Margin %: 24.70% (near median its 10-year median of 24.10)
GF Value™: NT$56.58 vs. price of NT$256.00 (352.5% above fair value)
Industry Position: 0.8% above the Hardware median (#1111 of 2449)
No single metric tells the full story. See the ROCO:6820 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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