Syscom Computer Engineering Co (TPE:2453) 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
Syscom Computer Engineering Co had a gross margin of 24.39% 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.
Syscom Computer Engineering Co Gross Margin % Related Terms
Syscom Computer Engineering 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.
Syscom Computer Engineering Co Gross Margin % Chart
TPE:2453 vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, Syscom Computer Engineering 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.
Syscom Computer Engineering Co Gross Margin % vs Software Industry
For the Software industry and Technology sector, Syscom Computer Engineering Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Syscom Computer Engineering 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.
Syscom Computer Engineering Co (TPE:2453) has a Gross Margin % of 24.39% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Syscom Computer Engineering Co and its competitors. This is near median its historical median of 24.31. Over the past decade, Syscom Computer Engineering Co's Gross Margin % has ranged from 21.05 to 26.02. According to the industry distribution chart, Syscom Computer Engineering Co ranks #1899 out of 2680 companies in the Software industry, placing it in the top 70.9%.
Is Syscom Computer Engineering Co's Gross Margin % too high?
Syscom Computer Engineering Co's current Gross Margin % of 24.39% is near median its 10-year median of 24.31. Over the past 10 years, this metric has ranged from a low of 21.05 to a high of 26.02. The Software industry median Gross Margin % is 40.45. Syscom Computer Engineering Co's value of 24.39% is 39.7% below this industry median. Based on the distribution chart, Syscom Computer Engineering Co ranks #1899 out of 2680 companies in the Software industry, which is below the industry midpoint. Overall, Syscom Computer Engineering Co has a GF Score™ of 96/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Syscom Computer Engineering Co's Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Syscom Computer Engineering Co ranks #1899 out of 2680 companies for Gross Margin %. This places Syscom Computer Engineering Co in the lower half of its industry. The industry median Gross Margin % is 40.45. Syscom Computer Engineering Co's value of 24.39% is 39.7% below this benchmark. Historically, Syscom Computer Engineering Co's own Gross Margin % has ranged from 21.05 to 26.02 over the past decade. While the company's 10-year median is 24.31 vs. the industry median of 40.45, Syscom Computer Engineering Co 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 Software company?
The median Gross Margin % among Software companies is 40.45, based on 2,680 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. Syscom Computer Engineering Co's current Gross Margin % of 24.39% is 39.7% 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 Syscom Computer Engineering Co and its competitors. For the Software industry, the median Gross Margin % is 40.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Syscom Computer Engineering Co's current Gross Margin % is 24.39%, which is near median its own 10-year median of 24.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Syscom Computer Engineering Co stock overvalued right now?
Based on GuruFocus' analysis, Syscom Computer Engineering Co (TPE:2453) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$66.79, compared to a current price of NT$55.90 — trading 16.3% below its estimated fair value. The current Gross Margin % is 24.39%, which is near median its 10-year median of 24.31 and 39.7% below the Software industry median of 40.45. Syscom Computer Engineering Co's overall GF Score™ is 96/100 with 1 warning sign 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 Syscom Computer Engineering Co (TPE:2453), the current Gross Margin % is 24.39% 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 Syscom Computer Engineering Co (TPE:2453) Overvalued in 2026?
Based on GuruFocus' analysis, Syscom Computer Engineering Co stock appears to be undervalued.
The current stock price of NT$55.90 is trading 16.3% below its estimated GF Value™ of NT$66.79.
GuruFocus considers Syscom Computer Engineering Co to be Modestly Undervalued.
Key valuation signals for TPE:2453:
Gross Margin %: 24.39% (near median its 10-year median of 24.31)
GF Value™: NT$66.79 vs. price of NT$55.90 (16.3% below fair value)
Industry Position: 39.7% below the Software median (#1899 of 2680)
No single metric tells the full story. See the TPE:2453 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Syscom Computer Engineering Co Business Description
Syscom Computer Engineering Co is an information technology service-providing company. The company mainly leases and sells computer systems and designs computer software. The company also provides services for the integration of computer information systems and maintenance of computer hardware. The company operates in geographical areas of Taiwan, China, the U.S.A., and Southeast Asia.
96GF Score
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