MITAC HoldingsTPE:3706 +0.23%86 Gross Margin % is 10.03% as of Dec. 2025, which is 13% below its 10-year median of 11.56. GuruFocus rates TPE:3706 with a GF Score™ of 86/100 and a GF Value™ of NT$130.01 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 2,449 Hardware companies, MITAC Holdings ranks worse than 81.83% on this metric.
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
MITAC Holdings had a gross margin of 10.03% 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.
MITAC Holdings Gross Margin % Related Terms
MITAC Holdings Gross Margin % Historical Data
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The historical data trend for MITAC Holdings's Gross Margin % can be seen below:
* 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:3706 vs SNDK, DELL, STX: Gross Margin % Comparison
For the Computer Hardware subindustry, MITAC Holdings'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.
MITAC Holdings Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, MITAC Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where MITAC Holdings'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.
MITAC Holdings (TPE:3706) has a Gross Margin % of 10.03% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on MITAC Holdings and its competitors. This is 13% below median its historical median of 11.56. Over the past decade, MITAC Holdings' Gross Margin % has ranged from 8.02 to 15.57. According to the industry distribution chart, MITAC Holdings ranks #2004 out of 2449 companies in the Hardware industry, placing it in the top 81.8%.
Is MITAC Holdings' Gross Margin % too high?
MITAC Holdings' current Gross Margin % of 10.03% is 13% below median its 10-year median of 11.56. Over the past 10 years, this metric has ranged from a low of 8.02 to a high of 15.57. The Hardware industry median Gross Margin % is 24.50. MITAC Holdings' value of 10.03% is 59.1% below this industry median. Based on the distribution chart, MITAC Holdings ranks #2004 out of 2449 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, MITAC Holdings has a GF Score™ of 86/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does MITAC Holdings' Gross Margin % compare to SNDK and DELL?
According to the Hardware industry distribution chart, MITAC Holdings ranks #2004 out of 2449 companies for Gross Margin %. This places MITAC Holdings in the lower half of its industry. The industry median Gross Margin % is 24.50. MITAC Holdings' value of 10.03% is 59.1% below this benchmark. Historically, MITAC Holdings' own Gross Margin % has ranged from 8.02 to 15.57 over the past decade. While the company's 10-year median is 11.56 vs. the industry median of 24.50, MITAC Holdings 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. MITAC Holdings's current Gross Margin % of 10.03% is 59.1% 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 MITAC Holdings 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. MITAC Holdings's current Gross Margin % is 10.03%, which is 13% below median its own 10-year median of 11.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MITAC Holdings stock overvalued right now?
Based on GuruFocus' analysis, MITAC Holdings (TPE:3706) is currently considered Significantly Undervalued. The stock's GF Value™ is NT$130.01, compared to a current price of NT$88.20 — trading 32.2% below its estimated fair value. The current Gross Margin % is 10.03%, which is 13% below median its 10-year median of 11.56 and 59.1% below the Hardware industry median of 24.50. MITAC Holdings' overall GF Score™ is 86/100 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 MITAC Holdings (TPE:3706), the current Gross Margin % is 10.03% 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 MITAC Holdings (TPE:3706) Overvalued in 2026?
Based on GuruFocus' analysis, MITAC Holdings stock appears to be undervalued.
The current stock price of NT$88.20 is trading 32.2% below its estimated GF Value™ of NT$130.01.
GuruFocus considers MITAC Holdings to be Significantly Undervalued.
Key valuation signals for TPE:3706:
Gross Margin %: 10.03% (13% below median its 10-year median of 11.56)
GF Value™: NT$130.01 vs. price of NT$88.20 (32.2% below fair value)
Industry Position: 59.1% below the Hardware median (#2004 of 2449)
No single metric tells the full story. See the TPE:3706 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
MITAC Holdings Corp is a holding company whose subsidiaries offer a range of electronics manufacturing services. It is engaged in designing, manufacturing, and distributing servers and storage products across various architectures in public cloud, private cloud, and hybrid cloud environments. The smart mobile device and cloud service business group builds application ecosystems that bridge cloud service and smart mobile devices. It serves industries such as finance, technology, retail, education, and manufacturing. The company brands include Mio, Magellan, Navman, and Tyan.
86GF Score
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