Loop Telecommunication International (TPE:3025) 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
Loop Telecommunication International had a gross margin of 68.55% for the quarter that ended in Dec. 2025 => Durable 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.
Loop Telecommunication International Gross Margin % Related Terms
Loop Telecommunication International 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.
Loop Telecommunication International Gross Margin % Chart
TPE:3025 vs CSCO, CIEN, MSI: Gross Margin % Comparison
For the Communication Equipment subindustry, Loop Telecommunication International'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.
Loop Telecommunication International Gross Margin % vs Hardware Industry
* 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.
Loop Telecommunication International (TPE:3025) has a Gross Margin % of 68.55% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Loop Telecommunication International and its competitors. This is 27% above median its historical median of 53.86. Over the past decade, Loop Telecommunication International's Gross Margin % has ranged from 37.90 to 68.72. According to the industry distribution chart, Loop Telecommunication International ranks #84 out of 2449 companies in the Hardware industry, placing it in the top 3.4%.
Is Loop Telecommunication International's Gross Margin % too high?
Loop Telecommunication International's current Gross Margin % of 68.55% is 27% above median its 10-year median of 53.86. Over the past 10 years, this metric has ranged from a low of 37.90 to a high of 68.72. The Hardware industry median Gross Margin % is 24.50. Loop Telecommunication International's value of 68.55% is 179.8% above this industry median. Based on the distribution chart, Loop Telecommunication International ranks #84 out of 2449 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Loop Telecommunication International has a GF Score™ of 90/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Loop Telecommunication International's Gross Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Loop Telecommunication International ranks #84 out of 2449 companies for Gross Margin %. This places Loop Telecommunication International in the top 3% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 24.50. Loop Telecommunication International's value of 68.55% is 179.8% above this benchmark. Historically, Loop Telecommunication International's own Gross Margin % has ranged from 37.90 to 68.72 over the past decade. While the company's 10-year median is 53.86 vs. the industry median of 24.50, Loop Telecommunication International 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 24.50, 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. Loop Telecommunication International's current Gross Margin % of 68.55% is 179.8% 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 Loop Telecommunication International 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. Loop Telecommunication International's current Gross Margin % is 68.55%, which is 27% above median its own 10-year median of 53.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Loop Telecommunication International stock overvalued right now?
Based on GuruFocus' analysis, Loop Telecommunication International (TPE:3025) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$78.41, compared to a current price of NT$61.60 — trading 21.4% below its estimated fair value. The current Gross Margin % is 68.55%, which is 27% above median its 10-year median of 53.86 and 179.8% above the Hardware industry median of 24.50. Loop Telecommunication International's overall GF Score™ is 90/100 with 3 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 Loop Telecommunication International (TPE:3025), the current Gross Margin % is 68.55% 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 Loop Telecommunication International (TPE:3025) Overvalued in 2026?
Based on GuruFocus' analysis, Loop Telecommunication International stock appears to be undervalued.
The current stock price of NT$61.60 is trading 21.4% below its estimated GF Value™ of NT$78.41.
GuruFocus considers Loop Telecommunication International to be Modestly Undervalued.
Key valuation signals for TPE:3025:
Gross Margin %: 68.55% (27% above median its 10-year median of 53.86)
GF Value™: NT$78.41 vs. price of NT$61.60 (21.4% below fair value)
Industry Position: 179.8% above the Hardware median (#84 of 2449)
No single metric tells the full story. See the TPE:3025 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Loop Telecommunication International Business Description
Loop Telecommunication International Inc operates in the communication equipment industry. The company is engaged in the R&D, development, production, manufacturing, and sales of user remote line disconnectors, protectors and their components, line reactors and their components, subtitle phones and their components, and smart network resource management multiplexers. The products offered by the firm include multi-service cross-connect, test equipment, wavelength division multiplexing, Ethernet access and switch, test stations, and others. Geographically, the company operates in Europe, America, Taiwan, Asia (other than Taiwan), and Others, with maximum revenue from Europe.
90GF Score
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