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CastleNet TechnologyROCO:8059 +1.81%52 Gross Margin % is 12.64% as of Dec. 2025, which is 84% above its 10-year median of 6.86. GuruFocus rates ROCO:8059 with a GF Score™ of 52/100 and a GF Value™ of NT$365.62 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 2,455 Hardware companies, CastleNet Technology ranks worse than 86.23% 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
CastleNet Technology had a gross margin of 12.64% 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.
CastleNet Technology Gross Margin % Related Terms
CastleNet Technology Gross Margin % Historical Data
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The historical data trend for CastleNet Technology'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.
ROCO:8059 vs CSCO, CIEN, MSI: Gross Margin % Comparison
For the Communication Equipment subindustry, CastleNet Technology'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.
CastleNet Technology Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, CastleNet Technology's Gross Margin % distribution charts can be found below:
* The bar in red indicates where CastleNet Technology'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.
CastleNet Technology (ROCO:8059) has a Gross Margin % of 12.64% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on CastleNet Technology and its competitors. This is 84% above median its historical median of 6.86. According to the industry distribution chart, CastleNet Technology ranks #2117 out of 2455 companies in the Hardware industry, placing it in the top 86.2%.
Is CastleNet Technology's Gross Margin % too high?
CastleNet Technology's current Gross Margin % of 12.64% is 84% above median its 10-year median of 6.86. The Hardware industry median Gross Margin % is 24.50. CastleNet Technology's value of 12.64% is 48.4% below this industry median. Based on the distribution chart, CastleNet Technology ranks #2117 out of 2455 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, CastleNet Technology has a GF Score™ of 52/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does CastleNet Technology's Gross Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, CastleNet Technology ranks #2117 out of 2455 companies for Gross Margin %. This places CastleNet Technology in the lower half of its industry. The industry median Gross Margin % is 24.50. CastleNet Technology's value of 12.64% is 48.4% below this benchmark. While the company's 10-year median is 6.86 vs. the industry median of 24.50, CastleNet Technology 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 2,455 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. CastleNet Technology's current Gross Margin % of 12.64% is 48.4% 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 CastleNet Technology 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. CastleNet Technology's current Gross Margin % is 12.64%, which is 84% above median its own 10-year median of 6.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CastleNet Technology stock overvalued right now?
Based on GuruFocus' analysis, CastleNet Technology (ROCO:8059) is currently considered Possible Value Trap. The stock's GF Value™ is NT$365.62, compared to a current price of NT$16.90 — trading 95.4% below its estimated fair value. The current Gross Margin % is 12.64%, which is 84% above median its 10-year median of 6.86 and 48.4% below the Hardware industry median of 24.50. CastleNet Technology's overall GF Score™ is 52/100 with 7 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 CastleNet Technology (ROCO:8059), the current Gross Margin % is 12.64% 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 CastleNet Technology (ROCO:8059) Overvalued in 2026?
Based on GuruFocus' analysis, CastleNet Technology stock appears to be undervalued.
The current stock price of NT$16.90 is trading 95.4% below its estimated GF Value™ of NT$365.62.
GuruFocus considers CastleNet Technology to be Possible Value Trap.
Key valuation signals for ROCO:8059:
Gross Margin %: 12.64% (84% above median its 10-year median of 6.86)
GF Value™: NT$365.62 vs. price of NT$16.90 (95.4% below fair value)
Industry Position: 48.4% below the Hardware median (#2117 of 2455)
No single metric tells the full story. See the ROCO:8059 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
CastleNet Technology Inc is a manufacturer of network communication equipment in Taiwan. It is predominantly engaged in the manufacturing and selling of consumer electronics products such as broadband communications and digital home entertainment. It offers products like EMTA Gateway, Data Gateway, Data Modem, and WiFi Mesh System among others. Geographically, the company generates a majority of its revenue from America followed by Asia, Europe, and Oceania.
52GF Score
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