Honor Seiki Co (ROCO:7709) Gross Margin %: 29.57% (As of Jun. 2026) — 22% Above Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

ROCO:7709 Honor Seiki Co Ltd ROCO:7709
59 GF Score
Price NT$69.40
GF Value NT$47.50
Valuation Significantly Overvalued
! 5 Warning Signs
View Full Analysis

What is Honor Seiki Co Gross Margin %?

Honor Seiki Co ROCO:7709 -2.25% 59 Gross Margin % is 29.57% as of Jun. 2026, which is 22% above its 10-year median of 24.29. GuruFocus rates ROCO:7709 with a GF Score™ of 59/100 and a GF Value™ of NT$47.50 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 3,002 Industrial Products companies, Honor Seiki Co ranks better than 51.1% on this metric.

Gross Margin % is calculated as gross profit divided by its revenue. Honor Seiki Co's Gross Profit for the three months ended in Jun. 2026 was NT$87 Mil. Honor Seiki Co's Revenue for the three months ended in Jun. 2026 was NT$296 Mil. Therefore, Honor Seiki Co's Gross Margin % for the quarter that ended in Jun. 2026 was 29.57%.


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

ROCO:7709' s Gross Margin % Range Over the Past 10 Years
Min: 16.53   Med: 24.29   Max: 28.49
Current: 27.38


During the past 6 years, the highest Gross Margin % of Honor Seiki Co was 28.49%. The lowest was 16.53%. And the median was 24.29%.

ROCO:7709's Gross Margin % is ranked better than
51.1% of 3002 companies
in the Industrial Products industry
Industry Median: 26.88 vs ROCO:7709: 27.38

Honor Seiki Co had a gross margin of 29.57% for the quarter that ended in Jun. 2026 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Honor Seiki Co was 7.70% per year.


Honor Seiki Co  (ROCO:7709) 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

Honor Seiki Co had a gross margin of 29.57% for the quarter that ended in Jun. 2026 => 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.


Honor Seiki Co Gross Margin % Related Terms


Honor Seiki Co Gross Margin % Historical Data

* Premium members only.

The historical data trend for Honor Seiki Co'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.

Honor Seiki Co Gross Margin % Chart

Honor Seiki Co Annual Data
Trend Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Gross Margin %
Get a 7-Day Free Trial 16.53 25.40 24.05 24.53 28.49

Honor Seiki Co Quarterly Data
Dec20 Dec21 Dec22 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
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 30.04 24.29 30.29 21.68 29.57

ROCO:7709 vs GEV, ETN, PH: Gross Margin % Comparison

For the Specialty Industrial Machinery subindustry, Honor Seiki 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.


Honor Seiki Co Gross Margin % vs Industrial Products Industry

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

* The bar in red indicates where Honor Seiki Co's Gross Margin % falls into.


ROCO:7709
59GF Score
Honor Seiki Co Ltd ROCO:7709
Gross Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Honor Seiki Co Gross Margin % Calculation

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

Honor Seiki Co'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 )
=285.6 / 1002.578
=(Revenue - Cost of Goods Sold) / Revenue
=(1002.578 - 716.987) / 1002.578
=28.49 %

Honor Seiki Co's Gross Margin for the quarter that ended in Jun. 2026 is calculated as


Gross Margin % (Q: Jun. 2026 )=Gross Profit (Q: Jun. 2026 ) / Revenue (Q: Jun. 2026 )
=87.4 / 295.611
=(Revenue - Cost of Goods Sold) / Revenue
=(295.611 - 208.209) / 295.611
=29.57 %

* 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 29.57% mean?
Honor Seiki Co (ROCO:7709) has a Gross Margin % of 29.57% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Honor Seiki Co and its competitors. This is 22% above median its historical median of 24.29. Over the past decade, Honor Seiki Co's Gross Margin % has ranged from 16.53 to 28.49. According to the industry distribution chart, Honor Seiki Co ranks #1468 out of 3002 companies in the Industrial Products industry, placing it in the top 48.9%.
Is Honor Seiki Co's Gross Margin % too high?
Honor Seiki Co's current Gross Margin % of 29.57% is 22% above median its 10-year median of 24.29. Over the past 10 years, this metric has ranged from a low of 16.53 to a high of 28.49. The Industrial Products industry median Gross Margin % is 26.88. Honor Seiki Co's value of 29.57% is 10% above this industry median. Based on the distribution chart, Honor Seiki Co ranks #1468 out of 3002 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Honor Seiki Co has a GF Score™ of 59/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Honor Seiki Co's Gross Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Honor Seiki Co ranks #1468 out of 3002 companies for Gross Margin %. This puts Honor Seiki Co in the upper half of its industry. The industry median Gross Margin % is 26.88. Honor Seiki Co's value of 29.57% is 10% above this benchmark. Historically, Honor Seiki Co's own Gross Margin % has ranged from 16.53 to 28.49 over the past decade. While the company's 10-year median is 24.29 vs. the industry median of 26.88, Honor Seiki 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.88, based on 3,002 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. Honor Seiki Co's current Gross Margin % of 29.57% is 10% 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 Honor Seiki Co and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Honor Seiki Co's current Gross Margin % is 29.57%, which is 22% above median its own 10-year median of 24.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Honor Seiki Co stock overvalued right now?
Based on GuruFocus' analysis, Honor Seiki Co (ROCO:7709) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$47.50, compared to a current price of NT$69.40 — trading 46.1% above its estimated fair value. The current Gross Margin % is 29.57%, which is 22% above median its 10-year median of 24.29 and 10% above the Industrial Products industry median of 26.88. Honor Seiki Co's overall GF Score™ is 59/100 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 Honor Seiki Co (ROCO:7709), the current Gross Margin % is 29.57% as of Jun. 2026. 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 Honor Seiki Co (ROCO:7709) Overvalued in 2026?

Based on GuruFocus' analysis, Honor Seiki Co stock appears to be overvalued. The current stock price of NT$69.40 is trading 46.1% above its estimated GF Value™ of NT$47.50. GuruFocus considers Honor Seiki Co to be Significantly Overvalued.

Key valuation signals for ROCO:7709:

  • Gross Margin %: 29.57% (22% above median its 10-year median of 24.29)
  • GF Value™: NT$47.50 vs. price of NT$69.40 (46.1% above fair value)
  • GF Score™: 59/100 with 5 warning signs
  • Industry Position: 10% above the Industrial Products median (#1468 of 3002)

No single metric tells the full story. See the ROCO:7709 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Honor Seiki Co Business Description

Address No. 6, Zhongshan Road, Section II, Hunei District, Kaohsiung, TWN
Honor Seiki Co Ltd is engaged in the business of manufacturing, trading, designing, and installing various hardware and mechanical products. It mainly focuses on the production of Vertical lathes, and its main product offerings are CNC Vertical Lathe, CNC Vertical Turning Center and, CNC Vertical Grinding Machine, CNC Planar Turning/Milling/Grinding Center, and CNC special-purpose machines.
59GF Score

Get the complete analysis for ROCO:7709

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

NT$69.40
Price
NT$47.50
GF Value