Solytech EnterpriseTPE:1471 -1.80%53 Gross Margin % is 5.75% as of Dec. 2025, which is 927% above its 10-year median of 0.56. GuruFocus rates TPE:1471 with a GF Score™ of 53/100 and a GF Value™ of NT$8.38 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 2,449 Hardware companies, Solytech Enterprise ranks worse than 87.1% 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
Solytech Enterprise had a gross margin of 5.75% 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.
Solytech Enterprise Gross Margin % Related Terms
Solytech Enterprise Gross Margin % Historical Data
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The historical data trend for Solytech Enterprise'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.
TPE:1471 vs SNDK, DELL, STX: Gross Margin % Comparison
For the Computer Hardware subindustry, Solytech Enterprise'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.
Solytech Enterprise Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Solytech Enterprise's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Solytech Enterprise'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.
Solytech Enterprise (TPE:1471) has a Gross Margin % of 5.75% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Solytech Enterprise and its competitors. This is 927% above median its historical median of 0.56. According to the industry distribution chart, Solytech Enterprise ranks #2133 out of 2449 companies in the Hardware industry, placing it in the top 87.1%.
Is Solytech Enterprise's Gross Margin % too high?
Solytech Enterprise's current Gross Margin % of 5.75% is 927% above median its 10-year median of 0.56. The Hardware industry median Gross Margin % is 24.50. Solytech Enterprise's value of 5.75% is 76.5% below this industry median. Based on the distribution chart, Solytech Enterprise ranks #2133 out of 2449 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Solytech Enterprise has a GF Score™ of 53/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Solytech Enterprise's Gross Margin % compare to SNDK and DELL?
According to the Hardware industry distribution chart, Solytech Enterprise ranks #2133 out of 2449 companies for Gross Margin %. This places Solytech Enterprise in the lower half of its industry. The industry median Gross Margin % is 24.50. Solytech Enterprise's value of 5.75% is 76.5% below this benchmark. While the company's 10-year median is 0.56 vs. the industry median of 24.50, Solytech Enterprise 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. Solytech Enterprise's current Gross Margin % of 5.75% is 76.5% 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 Solytech Enterprise 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. Solytech Enterprise's current Gross Margin % is 5.75%, which is 927% above median its own 10-year median of 0.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Solytech Enterprise stock overvalued right now?
Based on GuruFocus' analysis, Solytech Enterprise (TPE:1471) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$8.38, compared to a current price of NT$10.90 — trading 30.1% above its estimated fair value. The current Gross Margin % is 5.75%, which is 927% above median its 10-year median of 0.56 and 76.5% below the Hardware industry median of 24.50. Solytech Enterprise's overall GF Score™ is 53/100 with 3 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 Solytech Enterprise (TPE:1471), the current Gross Margin % is 5.75% 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 Solytech Enterprise (TPE:1471) Overvalued in 2026?
Based on GuruFocus' analysis, Solytech Enterprise stock appears to be overvalued.
The current stock price of NT$10.90 is trading 30.1% above its estimated GF Value™ of NT$8.38.
GuruFocus considers Solytech Enterprise to be Modestly Overvalued.
Key valuation signals for TPE:1471:
Gross Margin %: 5.75% (927% above median its 10-year median of 0.56)
GF Value™: NT$8.38 vs. price of NT$10.90 (30.1% above fair value)
Industry Position: 76.5% below the Hardware median (#2133 of 2449)
No single metric tells the full story. See the TPE:1471 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Solytech Enterprise Corp is engaged in manufacturing and selling power supplies, computer cases, and electronic components. The company derives the majority of its revenue from PC power supply suppliers and computer case products. Geographically, Its main source of revenue is in mainland China, and it also has a presence in the United States, Taiwan, and other countries.
53GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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