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
Chenming Electronic Technology had a gross margin of 21.20% 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.
Chenming Electronic Technology Gross Margin % Related Terms
Chenming Electronic Technology 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.
TPE:3013 vs SNDK, DELL, STX: Gross Margin % Comparison
For the Computer Hardware subindustry, Chenming Electronic 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.
Chenming Electronic Technology Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Chenming Electronic Technology's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Chenming Electronic 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.
Chenming Electronic Technology (TPE:3013) has a Gross Margin % of 21.20% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Chenming Electronic Technology and its competitors. This is 100% above median its historical median of 10.59. Over the past decade, Chenming Electronic Technology's Gross Margin % has ranged from 4.93 to 18.55. According to the industry distribution chart, Chenming Electronic Technology ranks #1581 out of 2449 companies in the Hardware industry, placing it in the top 64.6%.
Is Chenming Electronic Technology's Gross Margin % too high?
Chenming Electronic Technology's current Gross Margin % of 21.20% is 100% above median its 10-year median of 10.59. Over the past 10 years, this metric has ranged from a low of 4.93 to a high of 18.55. The Hardware industry median Gross Margin % is 24.50. Chenming Electronic Technology's value of 21.20% is 13.5% below this industry median. Based on the distribution chart, Chenming Electronic Technology ranks #1581 out of 2449 companies in the Hardware industry, which is below the industry midpoint. Overall, Chenming Electronic Technology has a GF Score™ of 88/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Chenming Electronic Technology's Gross Margin % compare to SNDK and DELL?
According to the Hardware industry distribution chart, Chenming Electronic Technology ranks #1581 out of 2449 companies for Gross Margin %. This places Chenming Electronic Technology in the lower half of its industry. The industry median Gross Margin % is 24.50. Chenming Electronic Technology's value of 21.20% is 13.5% below this benchmark. Historically, Chenming Electronic Technology's own Gross Margin % has ranged from 4.93 to 18.55 over the past decade. While the company's 10-year median is 10.59 vs. the industry median of 24.50, Chenming Electronic 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 24.50, 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. Chenming Electronic Technology's current Gross Margin % of 21.20% is 13.5% 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 Chenming Electronic Technology 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. Chenming Electronic Technology's current Gross Margin % is 21.20%, which is 100% above median its own 10-year median of 10.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chenming Electronic Technology stock overvalued right now?
Based on GuruFocus' analysis, Chenming Electronic Technology (TPE:3013) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$147.76, compared to a current price of NT$109.00 — trading 26.2% below its estimated fair value. The current Gross Margin % is 21.20%, which is 100% above median its 10-year median of 10.59 and 13.5% below the Hardware industry median of 24.50. Chenming Electronic Technology's overall GF Score™ is 88/100 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 Chenming Electronic Technology (TPE:3013), the current Gross Margin % is 21.20% 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 Chenming Electronic Technology (TPE:3013) Overvalued in 2026?
Based on GuruFocus' analysis, Chenming Electronic Technology stock appears to be undervalued.
The current stock price of NT$109.00 is trading 26.2% below its estimated GF Value™ of NT$147.76.
GuruFocus considers Chenming Electronic Technology to be Modestly Undervalued.
Key valuation signals for TPE:3013:
Gross Margin %: 21.20% (100% above median its 10-year median of 10.59)
GF Value™: NT$147.76 vs. price of NT$109.00 (26.2% below fair value)
Industry Position: 13.5% below the Hardware median (#1581 of 2449)
No single metric tells the full story. See the TPE:3013 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chenming Electronic Technology Business Description
Chenming Electronic Technology Corp is engaged in the manufacturing, research and development, and sale of server cases and computer cases. Geographically, it operates in China, Taiwan, the USA, and other countries. It generates the majority of its revenue from the USA, followed by Taiwan. The group has only one operating segment, which produces computer and mobile device components.
88GF Score
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