Microtek InternationalTPE:2305 -1.30%67 Gross Margin % is 51.08% as of Dec. 2025, which is 56% above its 10-year median of 32.69. GuruFocus rates TPE:2305 with a GF Score™ of 67/100 and a GF Value™ of NT$26.34 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 2,453 Hardware companies, Microtek International ranks better than 82.23% on this metric.
TPE:2305's Gross Margin % is ranked better than 82.23% of 2453
companies
in the Hardware industry
Industry Median: 24.52
vs TPE:2305: 44.52
Microtek International had a gross margin of 51.08% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Microtek International was 5.80% per year.
Microtek International (TPE:2305) 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
Microtek International had a gross margin of 51.08% for the quarter that ended in Dec. 2025 => Durable 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.
Microtek International Gross Margin % Related Terms
Microtek International Gross Margin % Historical Data
* Premium members only.
The historical data trend for Microtek International'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:2305 vs SNDK, DELL, STX: Gross Margin % Comparison
For the Computer Hardware subindustry, Microtek International'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.
Microtek International Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Microtek International's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Microtek International'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.
Microtek International (TPE:2305) has a Gross Margin % of 51.08% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Microtek International and its competitors. This is 56% above median its historical median of 32.69. Over the past decade, Microtek International's Gross Margin % has ranged from 27.48 to 44.52. According to the industry distribution chart, Microtek International ranks #436 out of 2453 companies in the Hardware industry, placing it in the top 17.8%.
Is Microtek International's Gross Margin % too high?
Microtek International's current Gross Margin % of 51.08% is 56% above median its 10-year median of 32.69. Over the past 10 years, this metric has ranged from a low of 27.48 to a high of 44.52. The Hardware industry median Gross Margin % is 24.52. Microtek International's value of 51.08% is 108.3% above this industry median. Based on the distribution chart, Microtek International ranks #436 out of 2453 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Microtek International has a GF Score™ of 67/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Microtek International's Gross Margin % compare to SNDK and DELL?
According to the Hardware industry distribution chart, Microtek International ranks #436 out of 2453 companies for Gross Margin %. This places Microtek International in the top 18% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 24.52. Microtek International's value of 51.08% is 108.3% above this benchmark. Historically, Microtek International's own Gross Margin % has ranged from 27.48 to 44.52 over the past decade. While the company's 10-year median is 32.69 vs. the industry median of 24.52, Microtek International 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 24.52, 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. Microtek International's current Gross Margin % of 51.08% is 108.3% 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 Microtek International and its competitors. For the Hardware industry, the median Gross Margin % is 24.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Microtek International's current Gross Margin % is 51.08%, which is 56% above median its own 10-year median of 32.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Microtek International stock overvalued right now?
Based on GuruFocus' analysis, Microtek International (TPE:2305) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$26.34, compared to a current price of NT$38.00 — trading 44.3% above its estimated fair value. The current Gross Margin % is 51.08%, which is 56% above median its 10-year median of 32.69 and 108.3% above the Hardware industry median of 24.52. Microtek International's overall GF Score™ is 67/100 with 5 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 Microtek International (TPE:2305), the current Gross Margin % is 51.08% 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 Microtek International (TPE:2305) Overvalued in 2026?
Based on GuruFocus' analysis, Microtek International stock appears to be overvalued.
The current stock price of NT$38.00 is trading 44.3% above its estimated GF Value™ of NT$26.34.
GuruFocus considers Microtek International to be Significantly Overvalued.
Key valuation signals for TPE:2305:
Gross Margin %: 51.08% (56% above median its 10-year median of 32.69)
GF Value™: NT$26.34 vs. price of NT$38.00 (44.3% above fair value)
Industry Position: 108.3% above the Hardware median (#436 of 2453)
No single metric tells the full story. See the TPE:2305 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Microtek International Inc is engaged in the design, manufacture, and sale of smart scanners, related computer information peripherals, and optical fiber engineering testing instruments. The company has two reporting departments: the image scanner division and the optoelectronics division. The image scanner division is engaged in the design, manufacture, and sale of digital video input/output hardware and software equipment, while the optoelectronics division is engaged in the research, manufacture, and sale of optical source devices, light instruments, and light source manufacturing systems. It derives revenue from the optoelectronics division. Geographically, it operates in China and Taiwan, with the majority of revenue deriving from China.
67GF 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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