TBI Motion Technology CoTPE:4540 +0.36%43 Gross Margin % is 16.55% as of Dec. 2025, which is 17% below its 10-year median of 20.05. GuruFocus rates TPE:4540 with a GF Score™ of 43/100 and a GF Value™ of NT$38.89 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 2,997 Industrial Products companies, TBI Motion Technology Co ranks worse than 90.39% on this metric.
TBI Motion Technology Co (TPE:4540) 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
TBI Motion Technology Co had a gross margin of 16.55% 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.
TBI Motion Technology Co Gross Margin % Related Terms
TBI Motion Technology 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:4540 vs SNA, RBC, LECO: Gross Margin % Comparison
For the Tools & Accessories subindustry, TBI Motion Technology 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.
TBI Motion Technology Co Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, TBI Motion Technology Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where TBI Motion Technology 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.
TBI Motion Technology Co (TPE:4540) has a Gross Margin % of 16.55% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on TBI Motion Technology Co and its competitors. This is 17% below median its historical median of 20.05. According to the industry distribution chart, TBI Motion Technology Co ranks #2709 out of 2997 companies in the Industrial Products industry, placing it in the top 90.4%.
Is TBI Motion Technology Co's Gross Margin % too high?
TBI Motion Technology Co's current Gross Margin % of 16.55% is 17% below median its 10-year median of 20.05. The Industrial Products industry median Gross Margin % is 26.81. TBI Motion Technology Co's value of 16.55% is 38.3% below this industry median. Based on the distribution chart, TBI Motion Technology Co ranks #2709 out of 2997 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, TBI Motion Technology Co has a GF Score™ of 43/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does TBI Motion Technology Co's Gross Margin % compare to SNA and RBC?
According to the Industrial Products industry distribution chart, TBI Motion Technology Co ranks #2709 out of 2997 companies for Gross Margin %. This places TBI Motion Technology Co in the lower half of its industry. The industry median Gross Margin % is 26.81. TBI Motion Technology Co's value of 16.55% is 38.3% below this benchmark. While the company's 10-year median is 20.05 vs. the industry median of 26.81, TBI Motion Technology Co 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.81, based on 2,997 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. TBI Motion Technology Co's current Gross Margin % of 16.55% is 38.3% 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 TBI Motion Technology Co and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TBI Motion Technology Co's current Gross Margin % is 16.55%, which is 17% below median its own 10-year median of 20.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TBI Motion Technology Co stock overvalued right now?
Based on GuruFocus' analysis, TBI Motion Technology Co (TPE:4540) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$38.89, compared to a current price of NT$55.60 — trading 43% above its estimated fair value. The current Gross Margin % is 16.55%, which is 17% below median its 10-year median of 20.05 and 38.3% below the Industrial Products industry median of 26.81. TBI Motion Technology Co's overall GF Score™ is 43/100 with 5 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 TBI Motion Technology Co (TPE:4540), the current Gross Margin % is 16.55% 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 TBI Motion Technology Co (TPE:4540) Overvalued in 2026?
Based on GuruFocus' analysis, TBI Motion Technology Co stock appears to be overvalued.
The current stock price of NT$55.60 is trading 43% above its estimated GF Value™ of NT$38.89.
GuruFocus considers TBI Motion Technology Co to be Significantly Overvalued.
Key valuation signals for TPE:4540:
Gross Margin %: 16.55% (17% below median its 10-year median of 20.05)
GF Value™: NT$38.89 vs. price of NT$55.60 (43% above fair value)
Industry Position: 38.3% below the Industrial Products median (#2709 of 2997)
No single metric tells the full story. See the TPE:4540 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
TBI Motion Technology Co Ltd is engaged in the manufacturing and sales of precision transmission components for industrial automation, ball screws, and linear slides. Its product portfolio includes Linear Guide, Ball Screw, Ball Spline, Rotary Series, Single Axis Actuator, and Accessory.
43GF Score
Get the complete analysis for TPE:4540
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