Honey Hope Honesty Enterprise Co (ROCO:8043) 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
Honey Hope Honesty Enterprise Co had a gross margin of 8.71% 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.
Honey Hope Honesty Enterprise Co Gross Margin % Related Terms
Honey Hope Honesty Enterprise 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.
Honey Hope Honesty Enterprise Co Gross Margin % Chart
For the Electronic Components subindustry, Honey Hope Honesty Enterprise 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.
Honey Hope Honesty Enterprise Co Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Honey Hope Honesty Enterprise Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Honey Hope Honesty Enterprise 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.
Honey Hope Honesty Enterprise Co (ROCO:8043) has a Gross Margin % of 8.71% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Honey Hope Honesty Enterprise Co and its competitors. This is 68% above median its historical median of 5.20. Over the past decade, Honey Hope Honesty Enterprise Co's Gross Margin % has ranged from 2.78 to 12.71. According to the industry distribution chart, Honey Hope Honesty Enterprise Co ranks #2271 out of 2449 companies in the Hardware industry, placing it in the top 92.7%.
Is Honey Hope Honesty Enterprise Co's Gross Margin % too high?
Honey Hope Honesty Enterprise Co's current Gross Margin % of 8.71% is 68% above median its 10-year median of 5.20. Over the past 10 years, this metric has ranged from a low of 2.78 to a high of 12.71. The Hardware industry median Gross Margin % is 24.50. Honey Hope Honesty Enterprise Co's value of 8.71% is 64.4% below this industry median. Based on the distribution chart, Honey Hope Honesty Enterprise Co ranks #2271 out of 2449 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Honey Hope Honesty Enterprise Co has a GF Score™ of 50/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Honey Hope Honesty Enterprise Co's Gross Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Honey Hope Honesty Enterprise Co ranks #2271 out of 2449 companies for Gross Margin %. This places Honey Hope Honesty Enterprise Co in the lower half of its industry. The industry median Gross Margin % is 24.50. Honey Hope Honesty Enterprise Co's value of 8.71% is 64.4% below this benchmark. Historically, Honey Hope Honesty Enterprise Co's own Gross Margin % has ranged from 2.78 to 12.71 over the past decade. While the company's 10-year median is 5.20 vs. the industry median of 24.50, Honey Hope Honesty Enterprise Co 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. Honey Hope Honesty Enterprise Co's current Gross Margin % of 8.71% is 64.4% 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 Honey Hope Honesty Enterprise Co 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. Honey Hope Honesty Enterprise Co's current Gross Margin % is 8.71%, which is 68% above median its own 10-year median of 5.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Honey Hope Honesty Enterprise Co stock overvalued right now?
Based on GuruFocus' analysis, Honey Hope Honesty Enterprise Co (ROCO:8043) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$29.01, compared to a current price of NT$202.50 — trading 598% above its estimated fair value. The current Gross Margin % is 8.71%, which is 68% above median its 10-year median of 5.20 and 64.4% below the Hardware industry median of 24.50. Honey Hope Honesty Enterprise Co's overall GF Score™ is 50/100 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 Honey Hope Honesty Enterprise Co (ROCO:8043), the current Gross Margin % is 8.71% 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 Honey Hope Honesty Enterprise Co (ROCO:8043) Overvalued in 2026?
Based on GuruFocus' analysis, Honey Hope Honesty Enterprise Co stock appears to be overvalued.
The current stock price of NT$202.50 is trading 598% above its estimated GF Value™ of NT$29.01.
GuruFocus considers Honey Hope Honesty Enterprise Co to be Significantly Overvalued.
Key valuation signals for ROCO:8043:
Gross Margin %: 8.71% (68% above median its 10-year median of 5.20)
GF Value™: NT$29.01 vs. price of NT$202.50 (598% above fair value)
Industry Position: 64.4% below the Hardware median (#2271 of 2449)
No single metric tells the full story. See the ROCO:8043 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Honey Hope Honesty Enterprise Co Business Description
Honey Hope Honesty Enterprise Co Ltd is engaged in the distribution of professional electronic components. The company focuses in general import and export (excluding futures), trading of electronic parts, agency for the distribution, quotation and bidding of domestic and foreign manufacturers' products in Taiwan and Asia. It distributes multilayer capacitors, chip inductors, chip Pai Yung, High-Frequency Chip Inductors, and others. The company's segments include: Taiwan; and Asia; and Others, of which it derives maximum revenue from Asia and Others.
50GF Score
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