TPE:3518's Gross Margin % is ranked worse than 93.89% of 2993
companies
in the Industrial Products industry
Industry Median: 26.83
vs TPE:3518: 6.79
Paragon Technologies Co had a gross margin of -2.30% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Paragon Technologies Co was -23.70% per year.
Paragon Technologies Co (TPE:3518) 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
Paragon Technologies Co had a gross margin of -2.30% 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.
Paragon Technologies Co Gross Margin % Related Terms
Paragon Technologies 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:3518 vs GEV, ETN, PH: Gross Margin % Comparison
For the Specialty Industrial Machinery subindustry, Paragon Technologies 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.
Paragon Technologies Co Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Paragon Technologies Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Paragon Technologies 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.
Paragon Technologies Co (TPE:3518) has a Gross Margin % of -2.30% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Paragon Technologies Co and its competitors. Over the past decade, Paragon Technologies Co's Gross Margin % has ranged from 2.60 to 36.48. According to the industry distribution chart, Paragon Technologies Co ranks #2810 out of 2993 companies in the Industrial Products industry, placing it in the top 93.9%.
Is Paragon Technologies Co's Gross Margin % too high?
Paragon Technologies Co's current Gross Margin % is -2.30%. Over the past 10 years, this metric has ranged from a low of 2.60 to a high of 36.48. Based on the distribution chart, Paragon Technologies Co ranks #2810 out of 2993 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, Paragon Technologies Co has a GF Score™ of 54/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Paragon Technologies Co's Gross Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Paragon Technologies Co ranks #2810 out of 2993 companies for Gross Margin %. This places Paragon Technologies Co in the lower half of its industry. The industry median Gross Margin % is 26.83. Historically, Paragon Technologies Co's own Gross Margin % has ranged from 2.60 to 36.48 over the past decade. 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.83, based on 2,993 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. 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 Paragon Technologies Co and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paragon Technologies Co's current Gross Margin % is -2.30%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Paragon Technologies Co stock overvalued right now?
Based on GuruFocus' analysis, Paragon Technologies Co (TPE:3518) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$19.87, compared to a current price of NT$35.30 — trading 77.7% above its estimated fair value. The current Gross Margin % is -2.30%. Paragon Technologies Co's 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 Paragon Technologies Co (TPE:3518), the current Gross Margin % is -2.30% 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 Paragon Technologies Co (TPE:3518) Overvalued in 2026?
Based on GuruFocus' analysis, Paragon Technologies Co stock appears to be overvalued.
The current stock price of NT$35.30 is trading 77.7% above its estimated GF Value™ of NT$19.87.
GuruFocus considers Paragon Technologies Co to be Significantly Overvalued.
Key valuation signals for TPE:3518:
Gross Margin %: -2.30%
GF Value™: NT$19.87 vs. price of NT$35.30 (77.7% above fair value)
No single metric tells the full story. See the TPE:3518 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Paragon Technologies Co Ltd is engaged in manufacturing EMI, optoelectronic, and optical film, and research, development, manufacturing, processing, and trading of machinery, equipment, and components. The company's reportable segments are as follows: the PVD Coating Products Department and the Silicon Carbide Products Department. The majority of the company's revenue is derived from the PVD Coating Products Department, which generates revenue from the sputter coating of electronic components according to the specifications agreed upon between the customers and the company. Geographically, key revenue for the company is derived from Mainland China and the rest from Taiwan.
54GF Score
Get the complete analysis for TPE:3518
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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