CMC MagneticsTPE:2323 -3.90%62 Gross Margin % is 23.42% as of Dec. 2025, which is 16% above its 10-year median of 20.18. GuruFocus rates TPE:2323 with a GF Score™ of 62/100 and a GF Value™ of NT$10.84 (Fairly Valued). The stock has 5 warning signs investors should review. Among 2,453 Hardware companies, CMC Magnetics ranks worse than 51.2% 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
CMC Magnetics had a gross margin of 23.42% 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.
CMC Magnetics Gross Margin % Related Terms
CMC Magnetics Gross Margin % Historical Data
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The historical data trend for CMC Magnetics'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:2323 vs SNDK, DELL, STX: Gross Margin % Comparison
For the Computer Hardware subindustry, CMC Magnetics'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.
CMC Magnetics Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, CMC Magnetics's Gross Margin % distribution charts can be found below:
* The bar in red indicates where CMC Magnetics'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.
CMC Magnetics (TPE:2323) has a Gross Margin % of 23.42% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on CMC Magnetics and its competitors. This is 16% above median its historical median of 20.18. Over the past decade, CMC Magnetics' Gross Margin % has ranged from 0.57 to 23.99. According to the industry distribution chart, CMC Magnetics ranks #1256 out of 2453 companies in the Hardware industry, placing it in the top 51.2%.
Is CMC Magnetics' Gross Margin % too high?
CMC Magnetics' current Gross Margin % of 23.42% is 16% above median its 10-year median of 20.18. Over the past 10 years, this metric has ranged from a low of 0.57 to a high of 23.99. The Hardware industry median Gross Margin % is 24.52. CMC Magnetics' value of 23.42% is 4.5% below this industry median. Based on the distribution chart, CMC Magnetics ranks #1256 out of 2453 companies in the Hardware industry, which is below the industry midpoint. Overall, CMC Magnetics has a GF Score™ of 62/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does CMC Magnetics' Gross Margin % compare to SNDK and DELL?
According to the Hardware industry distribution chart, CMC Magnetics ranks #1256 out of 2453 companies for Gross Margin %. This places CMC Magnetics in the lower half of its industry. The industry median Gross Margin % is 24.52. CMC Magnetics' value of 23.42% is 4.5% below this benchmark. Historically, CMC Magnetics' own Gross Margin % has ranged from 0.57 to 23.99 over the past decade. While the company's 10-year median is 20.18 vs. the industry median of 24.52, CMC Magnetics 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 24.52, 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. CMC Magnetics's current Gross Margin % of 23.42% is 4.5% 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 CMC Magnetics 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. CMC Magnetics's current Gross Margin % is 23.42%, which is 16% above median its own 10-year median of 20.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CMC Magnetics stock overvalued right now?
Based on GuruFocus' analysis, CMC Magnetics (TPE:2323) is currently considered Fairly Valued. The stock's GF Value™ is NT$10.84, compared to a current price of NT$11.10 — trading 2.4% above its estimated fair value. The current Gross Margin % is 23.42%, which is 16% above median its 10-year median of 20.18 and 4.5% below the Hardware industry median of 24.52. CMC Magnetics' overall GF Score™ is 62/100 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 CMC Magnetics (TPE:2323), the current Gross Margin % is 23.42% 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 CMC Magnetics (TPE:2323) Overvalued in 2026?
Based on GuruFocus' analysis, CMC Magnetics stock appears to be overvalued.
The current stock price of NT$11.10 is trading 2.4% above its estimated GF Value™ of NT$10.84.
GuruFocus considers CMC Magnetics to be Fairly Valued.
Key valuation signals for TPE:2323:
Gross Margin %: 23.42% (16% above median its 10-year median of 20.18)
GF Value™: NT$10.84 vs. price of NT$11.10 (2.4% above fair value)
Industry Position: 4.5% below the Hardware median (#1256 of 2453)
No single metric tells the full story. See the TPE:2323 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
CMC Magnetics Corp is mainly engaged in the manufacturing and sale of consumer electronic products, including optical discs, as well as the acquisition of film agency rights and the production and distribution of digital discs and Blu-ray discs for sales. Its products include M-disc, CMC Pro, HP CD, and data storage products. Its segments are: the Storage Media segment, which generates the maximum revenue and is engaged in the manufacturing and sale of consumer electronic products, including optical discs; the Other Optoelectronic segment, which manufactures and sells panels; the Investment segment, which invests in various businesses; and the Other Segment. Europe generates the maximum revenue for the Group.
62GF Score
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