Accton TechnologyTPE:2345 +6.62%89 Gross Margin % is 17.90% as of Dec. 2025, which is 11% below its 10-year median of 20.15. GuruFocus rates TPE:2345 with a GF Score™ of 89/100 and a GF Value™ of NT$1,760.60 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 2,454 Hardware companies, Accton Technology ranks worse than 65.36% 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
Accton Technology had a gross margin of 17.90% for the quarter that ended in Dec. 2025 => No sustainable 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.
Accton Technology Gross Margin % Related Terms
Accton Technology Gross Margin % Historical Data
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The historical data trend for Accton Technology'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:2345 vs CSCO, CIEN, MSI: Gross Margin % Comparison
For the Communication Equipment subindustry, Accton Technology'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.
Accton Technology Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Accton Technology's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Accton Technology'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.
Accton Technology (TPE:2345) has a Gross Margin % of 17.90% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Accton Technology and its competitors. This is 11% below median its historical median of 20.15. Over the past decade, Accton Technology's Gross Margin % has ranged from 18.05 to 22.88. According to the industry distribution chart, Accton Technology ranks #1604 out of 2454 companies in the Hardware industry, placing it in the top 65.4%.
Is Accton Technology's Gross Margin % too high?
Accton Technology's current Gross Margin % of 17.90% is 11% below median its 10-year median of 20.15. Over the past 10 years, this metric has ranged from a low of 18.05 to a high of 22.88. The Hardware industry median Gross Margin % is 24.57. Accton Technology's value of 17.90% is 27.1% below this industry median. Based on the distribution chart, Accton Technology ranks #1604 out of 2454 companies in the Hardware industry, which is below the industry midpoint. Overall, Accton Technology has a GF Score™ of 89/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Accton Technology's Gross Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Accton Technology ranks #1604 out of 2454 companies for Gross Margin %. This places Accton Technology in the lower half of its industry. The industry median Gross Margin % is 24.57. Accton Technology's value of 17.90% is 27.1% below this benchmark. Historically, Accton Technology's own Gross Margin % has ranged from 18.05 to 22.88 over the past decade. While the company's 10-year median is 20.15 vs. the industry median of 24.57, Accton Technology 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 24.57, based on 2,454 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. Accton Technology's current Gross Margin % of 17.90% is 27.1% 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 Accton Technology and its competitors. For the Hardware industry, the median Gross Margin % is 24.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Accton Technology's current Gross Margin % is 17.90%, which is 11% below median its own 10-year median of 20.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Accton Technology stock overvalued right now?
Based on GuruFocus' analysis, Accton Technology (TPE:2345) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$1,760.60, compared to a current price of NT$2,495.00 — trading 41.7% above its estimated fair value. The current Gross Margin % is 17.90%, which is 11% below median its 10-year median of 20.15 and 27.1% below the Hardware industry median of 24.57. Accton Technology's overall GF Score™ is 89/100 with 6 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 Accton Technology (TPE:2345), the current Gross Margin % is 17.90% 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 Accton Technology (TPE:2345) Overvalued in 2026?
Based on GuruFocus' analysis, Accton Technology stock appears to be overvalued.
The current stock price of NT$2,495.00 is trading 41.7% above its estimated GF Value™ of NT$1,760.60.
GuruFocus considers Accton Technology to be Significantly Overvalued.
Key valuation signals for TPE:2345:
Gross Margin %: 17.90% (11% below median its 10-year median of 20.15)
GF Value™: NT$1,760.60 vs. price of NT$2,495.00 (41.7% above fair value)
Industry Position: 27.1% below the Hardware median (#1604 of 2454)
No single metric tells the full story. See the TPE:2345 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Accton Technology Corp develops, manufactures, and sells high-quality products for computer network systems and wireless land area network (LAN) hardware and software products and renders related technical consulting and engineering design services. The products and services offered by the company are Switch, Network Application, Metro Access Switch, Other, and Wireless. The company generates the majority of its revenue from Network Application sales.
89GF Score
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