Horng Terng Automation CoROCO:7751 -9.30%25 Gross Margin % is 55.48% as of Dec. 2025, which is 7% above its 10-year median of 51.72. GuruFocus rates ROCO:7751 with a GF Score™ of 25/100. The stock has 1 warning sign investors should review. Among 1,008 Semiconductors companies, Horng Terng Automation Co ranks better than 89.09% on this metric.
Horng Terng Automation Co (ROCO:7751) 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
Horng Terng Automation Co had a gross margin of 55.48% 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.
Horng Terng Automation Co Gross Margin % Related Terms
Horng Terng Automation 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.
ROCO:7751 vs AMAT, LRCX, KLAC: Gross Margin % Comparison
For the Semiconductor Equipment & Materials subindustry, Horng Terng Automation 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.
Horng Terng Automation Co Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Horng Terng Automation Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Horng Terng Automation 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.
Horng Terng Automation Co (ROCO:7751) has a Gross Margin % of 55.48% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Horng Terng Automation Co and its competitors. This is near median its historical median of 51.72. Over the past decade, Horng Terng Automation Co's Gross Margin % has ranged from 47.94 to 55.47. According to the industry distribution chart, Horng Terng Automation Co ranks #110 out of 1008 companies in the Semiconductors industry, placing it in the top 10.9%.
Is Horng Terng Automation Co's Gross Margin % too high?
Horng Terng Automation Co's current Gross Margin % of 55.48% is near median its 10-year median of 51.72. Over the past 10 years, this metric has ranged from a low of 47.94 to a high of 55.47. The Semiconductors industry median Gross Margin % is 29.61. Horng Terng Automation Co's value of 55.48% is 87.4% above this industry median. Based on the distribution chart, Horng Terng Automation Co ranks #110 out of 1008 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Horng Terng Automation Co has a GF Score™ of 25/100, reflecting its overall financial health beyond just this single metric.
How does Horng Terng Automation Co's Gross Margin % compare to AMAT and LRCX?
According to the Semiconductors industry distribution chart, Horng Terng Automation Co ranks #110 out of 1008 companies for Gross Margin %. This places Horng Terng Automation Co in the top 11% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 29.61. Horng Terng Automation Co's value of 55.48% is 87.4% above this benchmark. Historically, Horng Terng Automation Co's own Gross Margin % has ranged from 47.94 to 55.47 over the past decade. While the company's 10-year median is 51.72 vs. the industry median of 29.61, Horng Terng Automation 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 1,008 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. Horng Terng Automation Co's current Gross Margin % of 55.48% is 87.4% 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 Horng Terng Automation 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. Horng Terng Automation Co's current Gross Margin % is 55.48%, which is near median its own 10-year median of 51.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Horng Terng Automation Co stock overvalued right now?
Horng Terng Automation Co (ROCO:7751) has a current Gross Margin % of 55.48%. The current Gross Margin % is 55.48%, which is near median its 10-year median of 51.72 and 87.4% above the Semiconductors industry median of 29.61. Horng Terng Automation Co's overall GF Score™ is 25/100 with 1 warning sign 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 Horng Terng Automation Co (ROCO:7751), the current Gross Margin % is 55.48% 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.
Horng Terng Automation Co Ltd is a Company that concentrates all its efforts on continuous research and development and upgrading of skills, providing complete technologies and equipment to customers, and providing customized equipment development and design, detection efficiency improvement, equipment integration and application, and other immediate and complete solutions based on customer development trends. The Company generates revenue from the research and development, manufacturing, and sale of semiconductor automation equipment. It mainly focuses on the R&D, production, and sale of semiconductor automation equipment.
25GF Score
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