SercommTPE:5388 +2.46%85 Gross Margin % is 13.97% as of Dec. 2025, which is 6% below its 10-year median of 14.85. GuruFocus rates TPE:5388 with a GF Score™ of 85/100 and a GF Value™ of NT$108.14 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 2,450 Hardware companies, Sercomm ranks worse than 71.8% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Sercomm's Gross Profit for the
three
months ended in Dec. 2025 was NT$2,190 Mil. Sercomm's Revenue for the
three
months ended in Dec. 2025 was NT$15,683 Mil. Therefore, Sercomm's Gross Margin % for the quarter that ended in Dec. 2025 was 13.97%.
The historical rank and industry rank for Sercomm's Gross Margin % or its related term are showing as below:
TPE:5388'
s Gross Margin % Range Over the Past 10 Years
Min: 12.91 Med: 14.85 Max: 17.74
Current: 15.7
During the past 13 years, the highestGross Margin % of Sercomm was 17.74%. The lowest was 12.91%. And the median was 14.85%.
TPE:5388's Gross Margin % is ranked worse than 71.8% of 2450
companies
in the Hardware industry
Industry Median: 24.5
vs TPE:5388: 15.70
Sercomm had a gross margin of 13.97% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Sercomm was 4.00% per year.
Sercomm (TPE:5388) 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
Sercomm had a gross margin of 13.97% 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.
Sercomm Gross Margin % Related Terms
Sercomm Gross Margin % Historical Data
* Premium members only.
The historical data trend for Sercomm'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:5388 vs CSCO, CIEN, MSI: Gross Margin % Comparison
For the Communication Equipment subindustry, Sercomm'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.
Sercomm Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Sercomm's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sercomm'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.
Sercomm (TPE:5388) has a Gross Margin % of 13.97% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Sercomm and its competitors. This is near median its historical median of 14.85. Over the past decade, Sercomm's Gross Margin % has ranged from 12.91 to 17.74. According to the industry distribution chart, Sercomm ranks #1759 out of 2450 companies in the Hardware industry, placing it in the top 71.8%.
Is Sercomm's Gross Margin % too high?
Sercomm's current Gross Margin % of 13.97% is near median its 10-year median of 14.85. Over the past 10 years, this metric has ranged from a low of 12.91 to a high of 17.74. The Hardware industry median Gross Margin % is 24.50. Sercomm's value of 13.97% is 43% below this industry median. Based on the distribution chart, Sercomm ranks #1759 out of 2450 companies in the Hardware industry, which is below the industry midpoint. Overall, Sercomm has a GF Score™ of 85/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sercomm's Gross Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Sercomm ranks #1759 out of 2450 companies for Gross Margin %. This places Sercomm in the lower half of its industry. The industry median Gross Margin % is 24.50. Sercomm's value of 13.97% is 43% below this benchmark. Historically, Sercomm's own Gross Margin % has ranged from 12.91 to 17.74 over the past decade. While the company's 10-year median is 14.85 vs. the industry median of 24.50, Sercomm 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 2,450 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. Sercomm's current Gross Margin % of 13.97% is 43% 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 Sercomm 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. Sercomm's current Gross Margin % is 13.97%, which is near median its own 10-year median of 14.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sercomm stock overvalued right now?
Based on GuruFocus' analysis, Sercomm (TPE:5388) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$108.14, compared to a current price of NT$83.40 — trading 22.9% below its estimated fair value. The current Gross Margin % is 13.97%, which is near median its 10-year median of 14.85 and 43% below the Hardware industry median of 24.50. Sercomm's overall GF Score™ is 85/100 with 6 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 Sercomm (TPE:5388), the current Gross Margin % is 13.97% 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 Sercomm (TPE:5388) Overvalued in 2026?
Based on GuruFocus' analysis, Sercomm stock appears to be undervalued.
The current stock price of NT$83.40 is trading 22.9% below its estimated GF Value™ of NT$108.14.
GuruFocus considers Sercomm to be Modestly Undervalued.
Key valuation signals for TPE:5388:
Gross Margin %: 13.97% (near median its 10-year median of 14.85)
GF Value™: NT$108.14 vs. price of NT$83.40 (22.9% below fair value)
Industry Position: 43% below the Hardware median (#1759 of 2450)
No single metric tells the full story. See the TPE:5388 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sercomm Corporation is mainly engaged in research and development, manufacturing, and sales of networking communication software and equipment. Its product portfolio includes FTTx Products, Cable DOCSIS Equipment, Integrated Access Devices (IAD), Small Cells, Smart Home, Mobile IoT, and SMB Products, among others. Geographically, the Group generates maximum revenue from the Americas, followed by Asia, Europe, and other markets.
85GF 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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