Abocom SystemsTPE:2444 +2.02%54 Gross Margin % is 6.18% as of Dec. 2025, which is 50% below its 10-year median of 12.26. GuruFocus rates TPE:2444 with a GF Score™ of 54/100 and a GF Value™ of NT$8.77 (Significantly Overvalued). The stock has 11 warning signs investors should review. Among 2,450 Hardware companies, Abocom Systems ranks worse than 94.29% on this metric.
Abocom Systems Inc gross margin has been in long-term decline. The average rate of decline per year is -17.5%.
The historical rank and industry rank for Abocom Systems's Gross Margin % or its related term are showing as below:
TPE:2444'
s Gross Margin % Range Over the Past 10 Years
Min: 4.19 Med: 12.26 Max: 17.69
Current: 4.19
During the past 13 years, the highestGross Margin % of Abocom Systems was 17.69%. The lowest was 4.19%. And the median was 12.26%.
TPE:2444's Gross Margin % is ranked worse than 94.29% of 2450
companies
in the Hardware industry
Industry Median: 24.5
vs TPE:2444: 4.19
Abocom Systems had a gross margin of 6.18% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Abocom Systems was -17.50% per year.
Abocom Systems (TPE:2444) 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
Abocom Systems had a gross margin of 6.18% 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.
Abocom Systems Gross Margin % Related Terms
Abocom Systems Gross Margin % Historical Data
* Premium members only.
The historical data trend for Abocom Systems'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:2444 vs CSCO, CIEN, MSI: Gross Margin % Comparison
For the Communication Equipment subindustry, Abocom Systems'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.
Abocom Systems Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Abocom Systems's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Abocom Systems'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.
Abocom Systems (TPE:2444) has a Gross Margin % of 6.18% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Abocom Systems and its competitors. This is 50% below median its historical median of 12.26. Over the past decade, Abocom Systems' Gross Margin % has ranged from 4.19 to 17.69. According to the industry distribution chart, Abocom Systems ranks #2310 out of 2450 companies in the Hardware industry, placing it in the top 94.3%.
Is Abocom Systems' Gross Margin % too high?
Abocom Systems' current Gross Margin % of 6.18% is 50% below median its 10-year median of 12.26. Over the past 10 years, this metric has ranged from a low of 4.19 to a high of 17.69. The Hardware industry median Gross Margin % is 24.50. Abocom Systems' value of 6.18% is 74.8% below this industry median. Based on the distribution chart, Abocom Systems ranks #2310 out of 2450 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Abocom Systems has a GF Score™ of 54/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Abocom Systems' Gross Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Abocom Systems ranks #2310 out of 2450 companies for Gross Margin %. This places Abocom Systems in the lower half of its industry. The industry median Gross Margin % is 24.50. Abocom Systems' value of 6.18% is 74.8% below this benchmark. Historically, Abocom Systems' own Gross Margin % has ranged from 4.19 to 17.69 over the past decade. While the company's 10-year median is 12.26 vs. the industry median of 24.50, Abocom Systems 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 2,450 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. Abocom Systems's current Gross Margin % of 6.18% is 74.8% 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 Abocom Systems 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. Abocom Systems's current Gross Margin % is 6.18%, which is 50% below median its own 10-year median of 12.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Abocom Systems stock overvalued right now?
Based on GuruFocus' analysis, Abocom Systems (TPE:2444) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$8.77, compared to a current price of NT$12.65 — trading 44.2% above its estimated fair value. The current Gross Margin % is 6.18%, which is 50% below median its 10-year median of 12.26 and 74.8% below the Hardware industry median of 24.50. Abocom Systems' overall GF Score™ is 54/100 with 11 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 Abocom Systems (TPE:2444), the current Gross Margin % is 6.18% 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 Abocom Systems (TPE:2444) Overvalued in 2026?
Based on GuruFocus' analysis, Abocom Systems stock appears to be overvalued.
The current stock price of NT$12.65 is trading 44.2% above its estimated GF Value™ of NT$8.77.
GuruFocus considers Abocom Systems to be Significantly Overvalued.
Key valuation signals for TPE:2444:
Gross Margin %: 6.18% (50% below median its 10-year median of 12.26)
GF Value™: NT$8.77 vs. price of NT$12.65 (44.2% above fair value)
Industry Position: 74.8% below the Hardware median (#2310 of 2450)
No single metric tells the full story. See the TPE:2444 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Abocom Systems Inc is a tele-communication company engaged in research, development, production, manufacturing and sale of various digital and data network communication and information, audio-video electronic products, memory products, and peripherals of laptop computers. The segments of the company are Network Communications Business Unit, and Memory Business Unit, out of which maximum revenue is derived from Network Communications Business Unit. Its products include vMicro SD memory card, SSD solid state drive, Laser chip, WIFI Wireless products, and others.
54GF Score
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