Thinking Electronic Industrial Co (TPE:2428) 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
Thinking Electronic Industrial Co had a gross margin of 39.10% 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.
Thinking Electronic Industrial Co Gross Margin % Related Terms
Thinking Electronic Industrial Co 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.
Thinking Electronic Industrial Co Gross Margin % Chart
For the Electronic Components subindustry, Thinking Electronic Industrial 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.
Thinking Electronic Industrial Co Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Thinking Electronic Industrial Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Thinking Electronic Industrial 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.
Thinking Electronic Industrial Co (TPE:2428) has a Gross Margin % of 39.10% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Thinking Electronic Industrial Co and its competitors. This is near median its historical median of 39.20. Over the past decade, Thinking Electronic Industrial Co's Gross Margin % has ranged from 31.04 to 45.85. According to the industry distribution chart, Thinking Electronic Industrial Co ranks #566 out of 2454 companies in the Hardware industry, placing it in the top 23.1%.
Is Thinking Electronic Industrial Co's Gross Margin % too high?
Thinking Electronic Industrial Co's current Gross Margin % of 39.10% is near median its 10-year median of 39.20. Over the past 10 years, this metric has ranged from a low of 31.04 to a high of 45.85. The Hardware industry median Gross Margin % is 24.53. Thinking Electronic Industrial Co's value of 39.10% is 59.4% above this industry median. Based on the distribution chart, Thinking Electronic Industrial Co ranks #566 out of 2454 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Thinking Electronic Industrial Co has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Thinking Electronic Industrial Co's Gross Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Thinking Electronic Industrial Co ranks #566 out of 2454 companies for Gross Margin %. This places Thinking Electronic Industrial Co in the top 23% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 24.53. Thinking Electronic Industrial Co's value of 39.10% is 59.4% above this benchmark. Historically, Thinking Electronic Industrial Co's own Gross Margin % has ranged from 31.04 to 45.85 over the past decade. While the company's 10-year median is 39.20 vs. the industry median of 24.53, Thinking Electronic Industrial 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 24.53, 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. Thinking Electronic Industrial Co's current Gross Margin % of 39.10% is 59.4% 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 Thinking Electronic Industrial Co and its competitors. For the Hardware industry, the median Gross Margin % is 24.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Thinking Electronic Industrial Co's current Gross Margin % is 39.10%, which is near median its own 10-year median of 39.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Thinking Electronic Industrial Co stock overvalued right now?
Based on GuruFocus' analysis, Thinking Electronic Industrial Co (TPE:2428) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$175.47, compared to a current price of NT$304.00 — trading 73.2% above its estimated fair value. The current Gross Margin % is 39.10%, which is near median its 10-year median of 39.20 and 59.4% above the Hardware industry median of 24.53. Thinking Electronic Industrial Co's overall GF Score™ is 78/100 with 8 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 Thinking Electronic Industrial Co (TPE:2428), the current Gross Margin % is 39.10% 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 Thinking Electronic Industrial Co (TPE:2428) Overvalued in 2026?
Based on GuruFocus' analysis, Thinking Electronic Industrial Co stock appears to be overvalued.
The current stock price of NT$304.00 is trading 73.2% above its estimated GF Value™ of NT$175.47.
GuruFocus considers Thinking Electronic Industrial Co to be Significantly Overvalued.
Key valuation signals for TPE:2428:
Gross Margin %: 39.10% (near median its 10-year median of 39.20)
GF Value™: NT$175.47 vs. price of NT$304.00 (73.2% above fair value)
Industry Position: 59.4% above the Hardware median (#566 of 2454)
No single metric tells the full story. See the TPE:2428 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Thinking Electronic Industrial Co Business Description
Thinking Electronic Industrial Co Ltd manufactures, processes, and sells electric devices, thermistors, varistors, and wires. Its product portfolio comprises negative temperature coefficient thermistors, zinc oxide varistors, ceramic positive temperature thermistors, polymer positive temperature coefficient thermistors (Polymer PTC resettable fuse), temperature sensors, and gas discharge tubes, among others. The Group's reportable segments are: Thinking Electronic Industrial (the company), which generates the maximum revenue, Thinking Changzhou, Dongguan Welkin and Zhongshan Welkin Guangdong, Thinking Yichang, Jiangxi Thinking, and Others. Geographically, it generates maximum revenue from Greater China (including Taiwan), and the rest from Europe and other regions.
78GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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