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NEXCOM International CoROCO:8234 +1.25%68 Gross Margin % is 26.10% as of Dec. 2025, which is 6% above its 10-year median of 24.56. GuruFocus rates ROCO:8234 with a GF Score™ of 68/100 and a GF Value™ of NT$54.31 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 2,453 Hardware companies, NEXCOM International Co ranks better than 52.1% on this metric.
ROCO:8234's Gross Margin % is ranked better than 52.1% of 2453
companies
in the Hardware industry
Industry Median: 24.49
vs ROCO:8234: 25.49
NEXCOM International Co had a gross margin of 26.10% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for NEXCOM International Co was 1.30% per year.
NEXCOM International Co (ROCO:8234) 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
NEXCOM International Co had a gross margin of 26.10% for the quarter that ended in Dec. 2025 => 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.
NEXCOM International Co Gross Margin % Related Terms
NEXCOM International 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:8234 vs SNDK, DELL, STX: Gross Margin % Comparison
For the Computer Hardware subindustry, NEXCOM International 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.
NEXCOM International Co Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, NEXCOM International Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where NEXCOM International 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.
NEXCOM International Co (ROCO:8234) has a Gross Margin % of 26.10% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on NEXCOM International Co and its competitors. This is near median its historical median of 24.56. Over the past decade, NEXCOM International Co's Gross Margin % has ranged from 21.76 to 27.94. According to the industry distribution chart, NEXCOM International Co ranks #1175 out of 2453 companies in the Hardware industry, placing it in the top 47.9%.
Is NEXCOM International Co's Gross Margin % too high?
NEXCOM International Co's current Gross Margin % of 26.10% is near median its 10-year median of 24.56. Over the past 10 years, this metric has ranged from a low of 21.76 to a high of 27.94. The Hardware industry median Gross Margin % is 24.49. NEXCOM International Co's value of 26.10% is 6.6% above this industry median. Based on the distribution chart, NEXCOM International Co ranks #1175 out of 2453 companies in the Hardware industry, which is above the industry midpoint. Overall, NEXCOM International Co has a GF Score™ of 68/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does NEXCOM International Co's Gross Margin % compare to SNDK and DELL?
According to the Hardware industry distribution chart, NEXCOM International Co ranks #1175 out of 2453 companies for Gross Margin %. This puts NEXCOM International Co in the upper half of its industry. The industry median Gross Margin % is 24.49. NEXCOM International Co's value of 26.10% is 6.6% above this benchmark. Historically, NEXCOM International Co's own Gross Margin % has ranged from 21.76 to 27.94 over the past decade. While the company's 10-year median is 24.56 vs. the industry median of 24.49, NEXCOM International 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 Hardware company?
The median Gross Margin % among Hardware companies is 24.49, based on 2,453 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. NEXCOM International Co's current Gross Margin % of 26.10% is 6.6% 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 NEXCOM International Co and its competitors. For the Hardware industry, the median Gross Margin % is 24.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NEXCOM International Co's current Gross Margin % is 26.10%, which is near median its own 10-year median of 24.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NEXCOM International Co stock overvalued right now?
Based on GuruFocus' analysis, NEXCOM International Co (ROCO:8234) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$54.31, compared to a current price of NT$64.70 — trading 19.1% above its estimated fair value. The current Gross Margin % is 26.10%, which is near median its 10-year median of 24.56 and 6.6% above the Hardware industry median of 24.49. NEXCOM International Co's overall GF Score™ is 68/100 with 4 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 NEXCOM International Co (ROCO:8234), the current Gross Margin % is 26.10% 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 NEXCOM International Co (ROCO:8234) Overvalued in 2026?
Based on GuruFocus' analysis, NEXCOM International Co stock appears to be overvalued.
The current stock price of NT$64.70 is trading 19.1% above its estimated GF Value™ of NT$54.31.
GuruFocus considers NEXCOM International Co to be Modestly Overvalued.
Key valuation signals for ROCO:8234:
Gross Margin %: 26.10% (near median its 10-year median of 24.56)
GF Value™: NT$54.31 vs. price of NT$64.70 (19.1% above fair value)
Industry Position: 6.6% above the Hardware median (#1175 of 2453)
No single metric tells the full story. See the ROCO:8234 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NEXCOM International Co Ltd is engaged in the manufacture and sales of industrial personal computers and peripherals, distribution agency services, and the design of computer programs and software applications. The Group is mainly engaged in the manufacture and sale of industrial personal computers. Its products and solutions include OT Cybersecurity Solutions, IoT Automation Solutions, Intelligent Platforms for Smart Cities, Mobile Computing Solutions, Network and Communication Solutions, Intelligent Video Surveillance, Industrial Wireless Solutions, Medical & Healthcare Informatics, solution demo, and other related offerings. The Group operates in Taiwan, Asia, and America, with Taiwan generating the majority of revenue.
68GF Score
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