Roundtop Machinery Industries Co (TPE:1540) 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
Roundtop Machinery Industries Co had a gross margin of 38.26% 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.
Roundtop Machinery Industries Co Gross Margin % Related Terms
Roundtop Machinery Industries 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.
Roundtop Machinery Industries Co Gross Margin % Chart
TPE:1540 vs GEV, ETN, PH: Gross Margin % Comparison
For the Specialty Industrial Machinery subindustry, Roundtop Machinery Industries 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.
Roundtop Machinery Industries Co Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Roundtop Machinery Industries Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Roundtop Machinery Industries 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.
Roundtop Machinery Industries Co (TPE:1540) has a Gross Margin % of 38.26% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Roundtop Machinery Industries Co and its competitors. This is 34% above median its historical median of 28.57. Over the past decade, Roundtop Machinery Industries Co's Gross Margin % has ranged from 13.93 to 34.76. According to the industry distribution chart, Roundtop Machinery Industries Co ranks #974 out of 2993 companies in the Industrial Products industry, placing it in the top 32.5%.
Is Roundtop Machinery Industries Co's Gross Margin % too high?
Roundtop Machinery Industries Co's current Gross Margin % of 38.26% is 34% above median its 10-year median of 28.57. Over the past 10 years, this metric has ranged from a low of 13.93 to a high of 34.76. The Industrial Products industry median Gross Margin % is 26.83. Roundtop Machinery Industries Co's value of 38.26% is 42.6% above this industry median. Based on the distribution chart, Roundtop Machinery Industries Co ranks #974 out of 2993 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Roundtop Machinery Industries Co has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Roundtop Machinery Industries Co's Gross Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Roundtop Machinery Industries Co ranks #974 out of 2993 companies for Gross Margin %. This puts Roundtop Machinery Industries Co in the upper half of its industry. The industry median Gross Margin % is 26.83. Roundtop Machinery Industries Co's value of 38.26% is 42.6% above this benchmark. Historically, Roundtop Machinery Industries Co's own Gross Margin % has ranged from 13.93 to 34.76 over the past decade. While the company's 10-year median is 28.57 vs. the industry median of 26.83, Roundtop Machinery Industries 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.83, based on 2,993 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. Roundtop Machinery Industries Co's current Gross Margin % of 38.26% is 42.6% 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 Roundtop Machinery Industries Co and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Roundtop Machinery Industries Co's current Gross Margin % is 38.26%, which is 34% above median its own 10-year median of 28.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Roundtop Machinery Industries Co stock overvalued right now?
Based on GuruFocus' analysis, Roundtop Machinery Industries Co (TPE:1540) is currently considered Fairly Valued. The stock's GF Value™ is NT$23.99, compared to a current price of NT$22.60 — trading 5.8% below its estimated fair value. The current Gross Margin % is 38.26%, which is 34% above median its 10-year median of 28.57 and 42.6% above the Industrial Products industry median of 26.83. Roundtop Machinery Industries Co's overall GF Score™ is 85/100 with 2 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 Roundtop Machinery Industries Co (TPE:1540), the current Gross Margin % is 38.26% 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 Roundtop Machinery Industries Co (TPE:1540) Overvalued in 2026?
Based on GuruFocus' analysis, Roundtop Machinery Industries Co stock appears to be undervalued.
The current stock price of NT$22.60 is trading 5.8% below its estimated GF Value™ of NT$23.99.
GuruFocus considers Roundtop Machinery Industries Co to be Fairly Valued.
Key valuation signals for TPE:1540:
Gross Margin %: 38.26% (34% above median its 10-year median of 28.57)
GF Value™: NT$23.99 vs. price of NT$22.60 (5.8% below fair value)
Industry Position: 42.6% above the Industrial Products median (#974 of 2993)
No single metric tells the full story. See the TPE:1540 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Roundtop Machinery Industries Co Business Description
Roundtop Machinery Industries Co Ltd is mainly engaged in the manufacturing and selling of machine tools, including milling machines, CNC milling machines, lathes, CNC lathes, various cutting centers, plastic machines, and spare parts. Geographically, the company generates the majority of its revenue from Asia and the rest from the Americas, Europe, and other regions.
85GF Score
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