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Genius Electronic Optical Co (TPE:3406) 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
Genius Electronic Optical Co had a gross margin of 33.16% for the quarter that ended in Jun. 2026 => 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.
Genius Electronic Optical Co Gross Margin % Related Terms
Genius Electronic Optical 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.
TPE:3406 vs DELL, ANET, SNDK: Gross Margin % Comparison
For the Computer Hardware subindustry, Genius Electronic Optical 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.
Genius Electronic Optical Co Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Genius Electronic Optical Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Genius Electronic Optical 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.
Genius Electronic Optical Co (TPE:3406) has a Gross Margin % of 33.16% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Genius Electronic Optical Co and its competitors. This is 11% below median its historical median of 37.21. Over the past decade, Genius Electronic Optical Co's Gross Margin % has ranged from 24.85 to 46.95. According to the industry distribution chart, Genius Electronic Optical Co ranks #799 out of 2454 companies in the Hardware industry, placing it in the top 32.6%.
Is Genius Electronic Optical Co's Gross Margin % too high?
Genius Electronic Optical Co's current Gross Margin % of 33.16% is 11% below median its 10-year median of 37.21. Over the past 10 years, this metric has ranged from a low of 24.85 to a high of 46.95. The Hardware industry median Gross Margin % is 24.77. Genius Electronic Optical Co's value of 33.16% is 33.9% above this industry median. Based on the distribution chart, Genius Electronic Optical Co ranks #799 out of 2454 companies in the Hardware industry, which is above the industry midpoint. Overall, Genius Electronic Optical Co has a GF Score™ of 92/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Genius Electronic Optical Co's Gross Margin % compare to DELL and ANET?
According to the Hardware industry distribution chart, Genius Electronic Optical Co ranks #799 out of 2454 companies for Gross Margin %. This puts Genius Electronic Optical Co in the upper half of its industry. The industry median Gross Margin % is 24.77. Genius Electronic Optical Co's value of 33.16% is 33.9% above this benchmark. Historically, Genius Electronic Optical Co's own Gross Margin % has ranged from 24.85 to 46.95 over the past decade. While the company's 10-year median is 37.21 vs. the industry median of 24.77, Genius Electronic Optical 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 24.77, 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. Genius Electronic Optical Co's current Gross Margin % of 33.16% is 33.9% 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 Genius Electronic Optical Co and its competitors. For the Hardware industry, the median Gross Margin % is 24.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Genius Electronic Optical Co's current Gross Margin % is 33.16%, which is 11% below median its own 10-year median of 37.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Genius Electronic Optical Co stock overvalued right now?
Based on GuruFocus' analysis, Genius Electronic Optical Co (TPE:3406) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$512.13, compared to a current price of NT$650.00 — trading 26.9% above its estimated fair value. The current Gross Margin % is 33.16%, which is 11% below median its 10-year median of 37.21 and 33.9% above the Hardware industry median of 24.77. Genius Electronic Optical Co's overall GF Score™ is 92/100 with 4 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 Genius Electronic Optical Co (TPE:3406), the current Gross Margin % is 33.16% as of Jun. 2026. 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 Genius Electronic Optical Co (TPE:3406) Overvalued in 2026?
Based on GuruFocus' analysis, Genius Electronic Optical Co stock appears to be overvalued.
The current stock price of NT$650.00 is trading 26.9% above its estimated GF Value™ of NT$512.13.
GuruFocus considers Genius Electronic Optical Co to be Modestly Overvalued.
Key valuation signals for TPE:3406:
Gross Margin %: 33.16% (11% below median its 10-year median of 37.21)
GF Value™: NT$512.13 vs. price of NT$650.00 (26.9% above fair value)
Industry Position: 33.9% above the Hardware median (#799 of 2454)
No single metric tells the full story. See the TPE:3406 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Genius Electronic Optical Co Ltd manufactures and sells optical instruments, molds, lighting equipment, and their spare parts, and acts as an agent of related export and import trade. Its segments include the Taiwan segment, responsible for the manufacturing and selling optical instrument, mold, and agent import and export; China segment responsible for the manufacturing and selling of optical lenses, lenses, optical components and other optoelectronic products and accessories pieces; Other segment engaged in selling, import and export, designing, manufacturing and the related business. It derives revenue from the Taiwan segment.
92GF Score
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