Biostar Microtech International (TPE:2399) 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
Biostar Microtech International had a gross margin of 8.40% 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.
Biostar Microtech International Gross Margin % Related Terms
Biostar Microtech International 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.
Biostar Microtech International Gross Margin % Chart
TPE:2399 vs SNDK, DELL, STX: Gross Margin % Comparison
For the Computer Hardware subindustry, Biostar Microtech 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.
Biostar Microtech International Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Biostar Microtech International's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Biostar Microtech 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.
Biostar Microtech International (TPE:2399) has a Gross Margin % of 8.40% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Biostar Microtech International and its competitors. This is 20% below median its historical median of 10.55. Over the past decade, Biostar Microtech International's Gross Margin % has ranged from 5.77 to 18.74. According to the industry distribution chart, Biostar Microtech International ranks #2232 out of 2449 companies in the Hardware industry, placing it in the top 91.1%.
Is Biostar Microtech International's Gross Margin % too high?
Biostar Microtech International's current Gross Margin % of 8.40% is 20% below median its 10-year median of 10.55. Over the past 10 years, this metric has ranged from a low of 5.77 to a high of 18.74. The Hardware industry median Gross Margin % is 24.50. Biostar Microtech International's value of 8.40% is 65.7% below this industry median. Based on the distribution chart, Biostar Microtech International ranks #2232 out of 2449 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Biostar Microtech International has a GF Score™ of 50/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Biostar Microtech International's Gross Margin % compare to SNDK and DELL?
According to the Hardware industry distribution chart, Biostar Microtech International ranks #2232 out of 2449 companies for Gross Margin %. This places Biostar Microtech International in the lower half of its industry. The industry median Gross Margin % is 24.50. Biostar Microtech International's value of 8.40% is 65.7% below this benchmark. Historically, Biostar Microtech International's own Gross Margin % has ranged from 5.77 to 18.74 over the past decade. While the company's 10-year median is 10.55 vs. the industry median of 24.50, Biostar Microtech International 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 24.50, 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. Biostar Microtech International's current Gross Margin % of 8.40% is 65.7% 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 Biostar Microtech International 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. Biostar Microtech International's current Gross Margin % is 8.40%, which is 20% below median its own 10-year median of 10.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Biostar Microtech International stock overvalued right now?
Based on GuruFocus' analysis, Biostar Microtech International (TPE:2399) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$17.37, compared to a current price of NT$55.00 — trading 216.6% above its estimated fair value. The current Gross Margin % is 8.40%, which is 20% below median its 10-year median of 10.55 and 65.7% below the Hardware industry median of 24.50. Biostar Microtech International's overall GF Score™ is 50/100 with 7 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 Biostar Microtech International (TPE:2399), the current Gross Margin % is 8.40% 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 Biostar Microtech International (TPE:2399) Overvalued in 2026?
Based on GuruFocus' analysis, Biostar Microtech International stock appears to be overvalued.
The current stock price of NT$55.00 is trading 216.6% above its estimated GF Value™ of NT$17.37.
GuruFocus considers Biostar Microtech International to be Significantly Overvalued.
Key valuation signals for TPE:2399:
Gross Margin %: 8.40% (20% below median its 10-year median of 10.55)
GF Value™: NT$17.37 vs. price of NT$55.00 (216.6% above fair value)
Industry Position: 65.7% below the Hardware median (#2232 of 2449)
No single metric tells the full story. See the TPE:2399 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Biostar Microtech International Business Description
Biostar Microtech International Corp is engaged in the manufacturing and selling of computer motherboards, industrial computers, and other computer peripheral products. The company's offerings include Industrial computers, motherboards, graphics cards, solid-state drives, memory, and other Peripheral equipment. Its reportable segments are: i) Asia-Pacific Operating Segment: Manufacture of computer mainboards, industrial computers and display cards, and sale of electronic products in the Asia-Pacific area, ii) America Sales Segment: Sale of electronic products in the Americas, and iii) Europe Sales Segment: Sale of electronic products in Europe. The majority of the company's revenue is derived from the Asia-Pacific Operating Segment.
50GF Score
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