TPE:6189's Gross Margin % is ranked worse than 86.67% of 2454
companies
in the Hardware industry
Industry Median: 24.53
vs TPE:6189: 8.81
Promate Electronic Co had a gross margin of 8.70% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Promate Electronic Co was 3.70% per year.
Promate Electronic Co (TPE:6189) 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
Promate Electronic Co had a gross margin of 8.70% 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.
Promate Electronic Co Gross Margin % Related Terms
Promate Electronic Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Promate Electronic Co'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:6189 vs SNX, ARW, AVT: Gross Margin % Comparison
For the Electronics & Computer Distribution subindustry, Promate Electronic 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.
Promate Electronic Co Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Promate Electronic Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Promate Electronic 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.
Promate Electronic Co (TPE:6189) has a Gross Margin % of 8.70% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Promate Electronic Co and its competitors. This is near median its historical median of 8.20. Over the past decade, Promate Electronic Co's Gross Margin % has ranged from 7.29 to 9.04. According to the industry distribution chart, Promate Electronic Co ranks #2127 out of 2454 companies in the Hardware industry, placing it in the top 86.7%.
Is Promate Electronic Co's Gross Margin % too high?
Promate Electronic Co's current Gross Margin % of 8.70% is near median its 10-year median of 8.20. Over the past 10 years, this metric has ranged from a low of 7.29 to a high of 9.04. The Hardware industry median Gross Margin % is 24.53. Promate Electronic Co's value of 8.70% is 64.5% below this industry median. Based on the distribution chart, Promate Electronic Co ranks #2127 out of 2454 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Promate Electronic Co has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Promate Electronic Co's Gross Margin % compare to SNX and ARW?
According to the Hardware industry distribution chart, Promate Electronic Co ranks #2127 out of 2454 companies for Gross Margin %. This places Promate Electronic Co in the lower half of its industry. The industry median Gross Margin % is 24.53. Promate Electronic Co's value of 8.70% is 64.5% below this benchmark. Historically, Promate Electronic Co's own Gross Margin % has ranged from 7.29 to 9.04 over the past decade. While the company's 10-year median is 8.20 vs. the industry median of 24.53, Promate Electronic 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 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. Promate Electronic Co's current Gross Margin % of 8.70% is 64.5% 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 Promate Electronic Co 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. Promate Electronic Co's current Gross Margin % is 8.70%, which is near median its own 10-year median of 8.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Promate Electronic Co stock overvalued right now?
Based on GuruFocus' analysis, Promate Electronic Co (TPE:6189) is currently considered Fairly Valued. The stock's GF Value™ is NT$49.54, compared to a current price of NT$53.20 — trading 7.4% above its estimated fair value. The current Gross Margin % is 8.70%, which is near median its 10-year median of 8.20 and 64.5% below the Hardware industry median of 24.53. Promate Electronic Co's 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 Promate Electronic Co (TPE:6189), the current Gross Margin % is 8.70% 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 Promate Electronic Co (TPE:6189) Overvalued in 2026?
Based on GuruFocus' analysis, Promate Electronic Co stock appears to be overvalued.
The current stock price of NT$53.20 is trading 7.4% above its estimated GF Value™ of NT$49.54.
GuruFocus considers Promate Electronic Co to be Fairly Valued.
Key valuation signals for TPE:6189:
Gross Margin %: 8.70% (near median its 10-year median of 8.20)
GF Value™: NT$49.54 vs. price of NT$53.20 (7.4% above fair value)
Industry Position: 64.5% below the Hardware median (#2127 of 2454)
No single metric tells the full story. See the TPE:6189 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Promate Electronic Co Ltd company is mainly engaged in the distribution and sales of electronic/electrical components, sales of computer software and electrical products, and sales of electronic/electrical components. The company has these operating segments; Application specific and LCD Display Products, Linear/ Distributed Components, Image Processing ICs, Application specific ICs, and Others. It has two business divisions; China Region Manufacturing and distribution agents established in Mainland China and Hong Kong; and Non-China Region Manufacturing and distribution agents established outside Mainland China and Hong Kong, out of which it derives a majority of its revenue from the Non-China Region.
86GF Score
Get the complete analysis for TPE:6189
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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