Highpoint Service NetworkROCO:6884 -1.81%62 Gross Margin % is 17.98% as of Dec. 2025, which is 2% below its 10-year median of 18.42. GuruFocus rates ROCO:6884 with a GF Score™ of 62/100 and a GF Value™ of NT$50.31 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 2,449 Hardware companies, Highpoint Service Network ranks worse than 59.09% on this metric.
Highpoint Service Network (ROCO:6884) 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
Highpoint Service Network had a gross margin of 17.98% 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.
Highpoint Service Network Gross Margin % Related Terms
Highpoint Service Network 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:6884 vs SNDK, DELL, STX: Gross Margin % Comparison
For the Computer Hardware subindustry, Highpoint Service Network'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.
Highpoint Service Network Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Highpoint Service Network's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Highpoint Service Network'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.
Highpoint Service Network (ROCO:6884) has a Gross Margin % of 17.98% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Highpoint Service Network and its competitors. This is near median its historical median of 18.42. Over the past decade, Highpoint Service Network's Gross Margin % has ranged from 3.34 to 21.83. According to the industry distribution chart, Highpoint Service Network ranks #1447 out of 2449 companies in the Hardware industry, placing it in the top 59.1%.
Is Highpoint Service Network's Gross Margin % too high?
Highpoint Service Network's current Gross Margin % of 17.98% is near median its 10-year median of 18.42. Over the past 10 years, this metric has ranged from a low of 3.34 to a high of 21.83. The Hardware industry median Gross Margin % is 24.50. Highpoint Service Network's value of 17.98% is 26.6% below this industry median. Based on the distribution chart, Highpoint Service Network ranks #1447 out of 2449 companies in the Hardware industry, which is below the industry midpoint. Overall, Highpoint Service Network has a GF Score™ of 62/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Highpoint Service Network's Gross Margin % compare to SNDK and DELL?
According to the Hardware industry distribution chart, Highpoint Service Network ranks #1447 out of 2449 companies for Gross Margin %. This places Highpoint Service Network in the lower half of its industry. The industry median Gross Margin % is 24.50. Highpoint Service Network's value of 17.98% is 26.6% below this benchmark. Historically, Highpoint Service Network's own Gross Margin % has ranged from 3.34 to 21.83 over the past decade. While the company's 10-year median is 18.42 vs. the industry median of 24.50, Highpoint Service Network 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 2,449 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. Highpoint Service Network's current Gross Margin % of 17.98% is 26.6% 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 Highpoint Service Network 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. Highpoint Service Network's current Gross Margin % is 17.98%, which is near median its own 10-year median of 18.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Highpoint Service Network stock overvalued right now?
Based on GuruFocus' analysis, Highpoint Service Network (ROCO:6884) is currently considered Significantly Undervalued. The stock's GF Value™ is NT$50.31, compared to a current price of NT$32.55 — trading 35.3% below its estimated fair value. The current Gross Margin % is 17.98%, which is near median its 10-year median of 18.42 and 26.6% below the Hardware industry median of 24.50. Highpoint Service Network's overall GF Score™ is 62/100 with 2 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 Highpoint Service Network (ROCO:6884), the current Gross Margin % is 17.98% 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 Highpoint Service Network (ROCO:6884) Overvalued in 2026?
Based on GuruFocus' analysis, Highpoint Service Network stock appears to be undervalued.
The current stock price of NT$32.55 is trading 35.3% below its estimated GF Value™ of NT$50.31.
GuruFocus considers Highpoint Service Network to be Significantly Undervalued.
Key valuation signals for ROCO:6884:
Gross Margin %: 17.98% (near median its 10-year median of 18.42)
GF Value™: NT$50.31 vs. price of NT$32.55 (35.3% below fair value)
Industry Position: 26.6% below the Hardware median (#1447 of 2449)
No single metric tells the full story. See the ROCO:6884 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Highpoint Service Network Corp is the after-sales service of information technology (IT) products and the sale of value-added services. The Group operates in only one reportable segment. This segment is mainly involved in providing after-sales service of IT products. Geographically, it operates in Malaysia, Taiwan, the Philippines, Thailand, Indonesia, and Vietnam, with the majority of the revenue deriving from Malaysia.
62GF Score
Get the complete analysis for ROCO:6884
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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