Tecom CoTPE:2321 61 Gross Margin % is 29.80% as of Dec. 2025, which is 50% above its 10-year median of 19.82. GuruFocus rates TPE:2321 with a GF Score™ of 61/100 and a GF Value™ of NT$15.84 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 2,449 Hardware companies, Tecom Co ranks better than 60.39% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Tecom Co's Gross Profit for the
three
months ended in Dec. 2025 was NT$52.1 Mil. Tecom Co's Revenue for the
three
months ended in Dec. 2025 was NT$174.8 Mil. Therefore, Tecom Co's Gross Margin % for the quarter that ended in Dec. 2025 was 29.80%.
The historical rank and industry rank for Tecom Co's Gross Margin % or its related term are showing as below:
TPE:2321'
s Gross Margin % Range Over the Past 10 Years
Min: 10.73 Med: 19.82 Max: 30.22
Current: 30.12
During the past 13 years, the highestGross Margin % of Tecom Co was 30.22%. The lowest was 10.73%. And the median was 19.82%.
TPE:2321's Gross Margin % is ranked better than 60.39% of 2449
companies
in the Hardware industry
Industry Median: 24.5
vs TPE:2321: 30.12
Tecom Co had a gross margin of 29.80% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Tecom Co was 11.30% per year.
Tecom Co (TPE:2321) 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
Tecom Co had a gross margin of 29.80% 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.
Tecom Co Gross Margin % Related Terms
Tecom Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Tecom Co'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:2321 vs CSCO, CIEN, MSI: Gross Margin % Comparison
For the Communication Equipment subindustry, Tecom 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.
Tecom Co Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Tecom Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Tecom 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.
Tecom Co (TPE:2321) has a Gross Margin % of 29.80% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Tecom Co and its competitors. This is 50% above median its historical median of 19.82. Over the past decade, Tecom Co's Gross Margin % has ranged from 10.73 to 30.22. According to the industry distribution chart, Tecom Co ranks #970 out of 2449 companies in the Hardware industry, placing it in the top 39.6%.
Is Tecom Co's Gross Margin % too high?
Tecom Co's current Gross Margin % of 29.80% is 50% above median its 10-year median of 19.82. Over the past 10 years, this metric has ranged from a low of 10.73 to a high of 30.22. The Hardware industry median Gross Margin % is 24.50. Tecom Co's value of 29.80% is 21.6% above this industry median. Based on the distribution chart, Tecom Co ranks #970 out of 2449 companies in the Hardware industry, which is above the industry midpoint. Overall, Tecom Co has a GF Score™ of 61/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tecom Co's Gross Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Tecom Co ranks #970 out of 2449 companies for Gross Margin %. This puts Tecom Co in the upper half of its industry. The industry median Gross Margin % is 24.50. Tecom Co's value of 29.80% is 21.6% above this benchmark. Historically, Tecom Co's own Gross Margin % has ranged from 10.73 to 30.22 over the past decade. While the company's 10-year median is 19.82 vs. the industry median of 24.50, Tecom 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 24.50, 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. Tecom Co's current Gross Margin % of 29.80% is 21.6% 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 Tecom Co 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. Tecom Co's current Gross Margin % is 29.80%, which is 50% above median its own 10-year median of 19.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tecom Co stock overvalued right now?
Based on GuruFocus' analysis, Tecom Co (TPE:2321) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$15.84, compared to a current price of NT$13.90 — trading 12.2% below its estimated fair value. The current Gross Margin % is 29.80%, which is 50% above median its 10-year median of 19.82 and 21.6% above the Hardware industry median of 24.50. Tecom Co's overall GF Score™ is 61/100 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 Tecom Co (TPE:2321), the current Gross Margin % is 29.80% 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 Tecom Co (TPE:2321) Overvalued in 2026?
Based on GuruFocus' analysis, Tecom Co stock appears to be undervalued.
The current stock price of NT$13.90 is trading 12.2% below its estimated GF Value™ of NT$15.84.
GuruFocus considers Tecom Co to be Modestly Undervalued.
Key valuation signals for TPE:2321:
Gross Margin %: 29.80% (50% above median its 10-year median of 19.82)
GF Value™: NT$15.84 vs. price of NT$13.90 (12.2% below fair value)
Industry Position: 21.6% above the Hardware median (#970 of 2449)
No single metric tells the full story. See the TPE:2321 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tecom Co Ltd is a Taiwan-based telecommunications equipment maker. The company specializes in providing communication convergence solutions for enterprise, carrier, and consumer markets. Its product portfolio includes smartphone business systems, business phone systems, carriers, smart home systems, smart video doorbells, vibration diagnoses, and (internet protocol) IP phones. The Group mainly derives it's revenue from business communication systems, smart electromechanics, and fiber optic cables. The company integrates voice communication, network communication, wireless communication, optical communication and mobile communication services. It operates in USA, Taiwan and Other countries.
61GF Score
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