Teco Electric & Machinery CoTPE:1504 +1.62%76 Gross Margin % is 23.29% as of Dec. 2025, which is 3% below its 10-year median of 23.96. GuruFocus rates TPE:1504 with a GF Score™ of 76/100 and a GF Value™ of NT$54.15 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 2,997 Industrial Products companies, Teco Electric & Machinery Co ranks worse than 57.76% on this metric.
Teco Electric & Machinery Co (TPE:1504) 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
Teco Electric & Machinery Co had a gross margin of 23.29% 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.
Teco Electric & Machinery Co Gross Margin % Related Terms
Teco Electric & Machinery 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.
TPE:1504 vs GEV, ETN, PH: Gross Margin % Comparison
For the Specialty Industrial Machinery subindustry, Teco Electric & Machinery 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.
Teco Electric & Machinery Co Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Teco Electric & Machinery Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Teco Electric & Machinery 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.
Teco Electric & Machinery Co (TPE:1504) has a Gross Margin % of 23.29% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Teco Electric & Machinery Co and its competitors. This is near median its historical median of 23.96. Over the past decade, Teco Electric & Machinery Co's Gross Margin % has ranged from 22.31 to 26.31. According to the industry distribution chart, Teco Electric & Machinery Co ranks #1731 out of 2997 companies in the Industrial Products industry, placing it in the top 57.8%.
Is Teco Electric & Machinery Co's Gross Margin % too high?
Teco Electric & Machinery Co's current Gross Margin % of 23.29% is near median its 10-year median of 23.96. Over the past 10 years, this metric has ranged from a low of 22.31 to a high of 26.31. The Industrial Products industry median Gross Margin % is 26.81. Teco Electric & Machinery Co's value of 23.29% is 13.1% below this industry median. Based on the distribution chart, Teco Electric & Machinery Co ranks #1731 out of 2997 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Teco Electric & Machinery Co has a GF Score™ of 76/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Teco Electric & Machinery Co's Gross Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Teco Electric & Machinery Co ranks #1731 out of 2997 companies for Gross Margin %. This places Teco Electric & Machinery Co in the lower half of its industry. The industry median Gross Margin % is 26.81. Teco Electric & Machinery Co's value of 23.29% is 13.1% below this benchmark. Historically, Teco Electric & Machinery Co's own Gross Margin % has ranged from 22.31 to 26.31 over the past decade. While the company's 10-year median is 23.96 vs. the industry median of 26.81, Teco Electric & Machinery 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.81, based on 2,997 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. Teco Electric & Machinery Co's current Gross Margin % of 23.29% is 13.1% 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 Teco Electric & Machinery Co and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Teco Electric & Machinery Co's current Gross Margin % is 23.29%, which is near median its own 10-year median of 23.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Teco Electric & Machinery Co stock overvalued right now?
Based on GuruFocus' analysis, Teco Electric & Machinery Co (TPE:1504) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$54.15, compared to a current price of NT$69.00 — trading 27.4% above its estimated fair value. The current Gross Margin % is 23.29%, which is near median its 10-year median of 23.96 and 13.1% below the Industrial Products industry median of 26.81. Teco Electric & Machinery Co's overall GF Score™ is 76/100 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 Teco Electric & Machinery Co (TPE:1504), the current Gross Margin % is 23.29% 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 Teco Electric & Machinery Co (TPE:1504) Overvalued in 2026?
Based on GuruFocus' analysis, Teco Electric & Machinery Co stock appears to be overvalued.
The current stock price of NT$69.00 is trading 27.4% above its estimated GF Value™ of NT$54.15.
GuruFocus considers Teco Electric & Machinery Co to be Modestly Overvalued.
Key valuation signals for TPE:1504:
Gross Margin %: 23.29% (near median its 10-year median of 23.96)
GF Value™: NT$54.15 vs. price of NT$69.00 (27.4% above fair value)
Industry Position: 13.1% below the Industrial Products median (#1731 of 2997)
No single metric tells the full story. See the TPE:1504 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Teco Electric & Machinery Co Ltd is a Taiwan-based company that manufactures and sells various types of mechanical equipment, air-conditioning units, and electronic equipment products. The company's Heavy industrial products, the product line by revenue contribution, are used in fluid machinery, elevators, cranes, petrochemical machinery, rolling mills, pumps, and various other machinery. The company's home appliance offerings comprise air conditioners, refrigerators, washing machines, televisions, air purifiers, and others. The company also provides automation products such as converters, servo controllers, and circuit breakers. The company generates the majority of its revenue from Taiwan.
76GF Score
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