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
Zhen Ding Technology Holding had a gross margin of 22.56% for the quarter that ended in Dec. 2025 => 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.
Zhen Ding Technology Holding Gross Margin % Related Terms
Zhen Ding Technology Holding 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.
For the Electronic Components subindustry, Zhen Ding Technology Holding'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.
Zhen Ding Technology Holding Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Zhen Ding Technology Holding's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Zhen Ding Technology Holding'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.
Zhen Ding Technology Holding (TPE:4958) has a Gross Margin % of 22.56% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Zhen Ding Technology Holding and its competitors. This is 14% above median its historical median of 19.75. Over the past decade, Zhen Ding Technology Holding's Gross Margin % has ranged from 15.22 to 23.28. According to the industry distribution chart, Zhen Ding Technology Holding ranks #1503 out of 2454 companies in the Hardware industry, placing it in the top 61.2%.
Is Zhen Ding Technology Holding's Gross Margin % too high?
Zhen Ding Technology Holding's current Gross Margin % of 22.56% is 14% above median its 10-year median of 19.75. Over the past 10 years, this metric has ranged from a low of 15.22 to a high of 23.28. The Hardware industry median Gross Margin % is 24.53. Zhen Ding Technology Holding's value of 22.56% is 8% below this industry median. Based on the distribution chart, Zhen Ding Technology Holding ranks #1503 out of 2454 companies in the Hardware industry, which is below the industry midpoint. Overall, Zhen Ding Technology Holding has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zhen Ding Technology Holding's Gross Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Zhen Ding Technology Holding ranks #1503 out of 2454 companies for Gross Margin %. This places Zhen Ding Technology Holding in the lower half of its industry. The industry median Gross Margin % is 24.53. Zhen Ding Technology Holding's value of 22.56% is 8% below this benchmark. Historically, Zhen Ding Technology Holding's own Gross Margin % has ranged from 15.22 to 23.28 over the past decade. While the company's 10-year median is 19.75 vs. the industry median of 24.53, Zhen Ding Technology Holding 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 24.53, 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. Zhen Ding Technology Holding's current Gross Margin % of 22.56% is 8% 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 Zhen Ding Technology Holding and its competitors. For the Hardware industry, the median Gross Margin % is 24.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhen Ding Technology Holding's current Gross Margin % is 22.56%, which is 14% above median its own 10-year median of 19.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhen Ding Technology Holding stock overvalued right now?
Based on GuruFocus' analysis, Zhen Ding Technology Holding (TPE:4958) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$111.71, compared to a current price of NT$630.00 — trading 464% above its estimated fair value. The current Gross Margin % is 22.56%, which is 14% above median its 10-year median of 19.75 and 8% below the Hardware industry median of 24.53. Zhen Ding Technology Holding's overall GF Score™ is 68/100 with 9 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 Zhen Ding Technology Holding (TPE:4958), the current Gross Margin % is 22.56% 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 Zhen Ding Technology Holding (TPE:4958) Overvalued in 2026?
Based on GuruFocus' analysis, Zhen Ding Technology Holding stock appears to be overvalued.
The current stock price of NT$630.00 is trading 464% above its estimated GF Value™ of NT$111.71.
GuruFocus considers Zhen Ding Technology Holding to be Significantly Overvalued.
Key valuation signals for TPE:4958:
Gross Margin %: 22.56% (14% above median its 10-year median of 19.75)
GF Value™: NT$111.71 vs. price of NT$630.00 (464% above fair value)
Industry Position: 8% below the Hardware median (#1503 of 2454)
No single metric tells the full story. See the TPE:4958 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhen Ding Technology Holding Ltd manufactures printed circuit boards, including high-density interconnection, flexible printed circuits, rigid printed circuit boards, and integrated circuit substrates. These products are used in a variety of applications, including personal computers, watches, memory and data cards, smartphones, tablets, media players, televisions, digital and video cameras, and game consoles. Its customers include the telecommunications, electronics, automotive, medical equipment, military equipment, and space industries. The Group generates all of its revenue from the manufacturing of PCB products. Geographically, it derives maximum revenue from the USA, and the rest from Mainland China, Taiwan, Singapore, and other regions.
68GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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