Chaintech TechnologyTPE:2425 -2.16%65 Gross Margin % is 8.50% as of Dec. 2025, which is 10% above its 10-year median of 7.74. GuruFocus rates TPE:2425 with a GF Score™ of 65/100 and a GF Value™ of NT$29.81 (Modestly Overvalued). The stock has 10 warning signs investors should review. Among 2,449 Hardware companies, Chaintech Technology ranks worse than 90.32% 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
Chaintech Technology had a gross margin of 8.50% 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.
Chaintech Technology Gross Margin % Related Terms
Chaintech Technology Gross Margin % Historical Data
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The historical data trend for Chaintech 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:2425 vs DELL, SNDK, ANET: Gross Margin % Comparison
For the Computer Hardware subindustry, Chaintech 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.
Chaintech Technology Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Chaintech Technology's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Chaintech 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.
Chaintech Technology (TPE:2425) has a Gross Margin % of 8.50% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Chaintech Technology and its competitors. This is 10% above median its historical median of 7.74. Over the past decade, Chaintech Technology's Gross Margin % has ranged from 1.81 to 10.38. According to the industry distribution chart, Chaintech Technology ranks #2212 out of 2449 companies in the Hardware industry, placing it in the top 90.3%.
Is Chaintech Technology's Gross Margin % too high?
Chaintech Technology's current Gross Margin % of 8.50% is 10% above median its 10-year median of 7.74. Over the past 10 years, this metric has ranged from a low of 1.81 to a high of 10.38. The Hardware industry median Gross Margin % is 24.52. Chaintech Technology's value of 8.50% is 65.3% below this industry median. Based on the distribution chart, Chaintech Technology ranks #2212 out of 2449 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Chaintech Technology has a GF Score™ of 65/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Chaintech Technology's Gross Margin % compare to DELL and SNDK?
According to the Hardware industry distribution chart, Chaintech Technology ranks #2212 out of 2449 companies for Gross Margin %. This places Chaintech Technology in the lower half of its industry. The industry median Gross Margin % is 24.52. Chaintech Technology's value of 8.50% is 65.3% below this benchmark. Historically, Chaintech Technology's own Gross Margin % has ranged from 1.81 to 10.38 over the past decade. While the company's 10-year median is 7.74 vs. the industry median of 24.52, Chaintech 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 24.52, 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. Chaintech Technology's current Gross Margin % of 8.50% is 65.3% 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 Chaintech Technology 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. Chaintech Technology's current Gross Margin % is 8.50%, which is 10% above median its own 10-year median of 7.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chaintech Technology stock overvalued right now?
Based on GuruFocus' analysis, Chaintech Technology (TPE:2425) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$29.81, compared to a current price of NT$38.50 — trading 29.2% above its estimated fair value. The current Gross Margin % is 8.50%, which is 10% above median its 10-year median of 7.74 and 65.3% below the Hardware industry median of 24.52. Chaintech Technology's overall GF Score™ is 65/100 with 10 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 Chaintech Technology (TPE:2425), the current Gross Margin % is 8.50% 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 Chaintech Technology (TPE:2425) Overvalued in 2026?
Based on GuruFocus' analysis, Chaintech Technology stock appears to be overvalued.
The current stock price of NT$38.50 is trading 29.2% above its estimated GF Value™ of NT$29.81.
GuruFocus considers Chaintech Technology to be Modestly Overvalued.
Key valuation signals for TPE:2425:
Gross Margin %: 8.50% (10% above median its 10-year median of 7.74)
GF Value™: NT$29.81 vs. price of NT$38.50 (29.2% above fair value)
Industry Position: 65.3% below the Hardware median (#2212 of 2449)
No single metric tells the full story. See the TPE:2425 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chaintech Technology Corp is principally engaged in the business of buying and selling and manufacturing of motherboards, display cards, and computer peripherals. The company has reportable segments, namely, Consumer goods, AI servers and related products. The majority of revenue is derived from the AI servers and related products. Geographically, the company generates a majority of its revenue from China and the rest from Taiwan.
65GF Score
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